SC asks tax tribunals to ensure appeals are e-filed
Mumbai, April 26, 2023
The Supreme Court has directed the Income Tax Appellate Tribunal (ITAT) to ensure that all appeals filed by the revenue authorities (tax department) are only in the e-filing mode. It has set a target date of June 30 for the same and called for amendment to rules.
A three-member bench composed of chief justice of India D Y Chandrachud, Justice P S Narasimha, and Justice J B Pardiwala, in their recent order, directed that, “The ministry of finance shall depute a senior officer to engage with the acting president of the ITAT. If the rules are to be amended, they should be amended to incorporate e-filing requirements.” The ITAT is currently headed by an acting president — the date for submission of online applications for the post of the president has been extended to May 1.
Additional solicitor general Balbir Singh, appearing for the Union of India, placed a note before the apex court. According to this note, field formations (that is, tax officials) have been filing appeals/petitions in both physical and e-filing mode. Of the 17,522 appeals filed in fiscal 2022-23, approximately only 1% (125 in number) were filed in e-filing mode. “As of now, e-filing of appeals is not enabled in ITAT benches in Mumbai.”
The note added that in compliance with the directions of the earlier order of the Supreme Court, in February, field formations had been directed to ensure that 100% filing by tax officials before the ITAT takes place in e-filing mode by end of May. “It is one of the targets of the Interim Action Plan 2022-23 issued by the Central Board of Direct Taxes (CBDT).”
The ITAT informed that e-filing of appeals is not mandatory. Even after e-filing, physical submission of appeals in paper form, as is required in the rules, is needed. The apex court pointed out, “It would defeat the purpose if in addition to e-filing, the ITATs insist on filing of the appeals in the physical mode. This has to be discontinued since it imposes an unnecessary burden on litigants.” It has also directed for training of the members of the ITAT, if required.
Currently, the ITAT has set up committees to facilitate transition to a paperless environment. As a pilot project, one courtroom in the ITAT’s Delhi bench is being upgraded to be a paperless courtroom and trial of the software is being undertaken. After this is successfully initiated, it would be implemented across the country in six months. Once paperless courts become operational, necessary changes can be made to the rules to do away with physical submission of appeals, stated the ITAT.
The efforts of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) have been appreciated by the SC bench. CESTAT informed the apex court that the e-filing module developed by the National Informatics Centre (NIC) was tested in all nine benches during the first week of March. The module has been sent for security audit, and will be launched thereafter. An updated status report has been called for, that will be placed on record on the next date of hearing, which is July 28.
[The Times of India]
