Reducing income tax disputes in India | A way forward
Direct tax litigation cycle in India Normal dispute litigation route timelines and hierarchy
High Courts, and the Supreme Court. The current tax litigation process in India could take 12-14 years (if appeals go up to the Supreme Court) to resolve a tax dispute. The lag is mainly because
A taxpayer, after receiving an assessment order, can take an appeal through four appellate forums – CIT (Appeals), ITAT,
no timelines are mandated for conclusion of proceedings at the appellate forums, significant workload, lack of a fast-track dispute resolution mechanism, etc. (refer Figure 3).
Figure 3: Income tax litigation cycle Income Tax Litigation Cycle Conducted by members of the Indian revenue
To be completed by November 30
Conducted by independent judiciary
Varies, normally 2 years CIT (Appeals)* Tribunal
Return Filing
Assessment 21/33 months from financial year
9 months
Dispute Resolution Panel
High Court
Supreme Court
May cumulative take 8 years
12-14 years for final resolution if litigation is pursued up to the Supreme Court. 07
