Income Tax -More than 96% arrears difficult to recover
THE CAG in its latest report to Parliament on Direct Taxes states, "The uncollected demand increased from Rs. 5.75 lakh crore in FY 2013-14 to Rs. 7.00 lakh crore in FY 2014-15. The Department indicated that more than 96 per cent of uncollected demand is difficult to recover in FY 2014-15."
The CAG further states:
The number of non-corporate assessees increased from 304.03 lakhin FY 2013-14 to 360.55 lakh in FY 2014-15 registering an increase of18.6 per cent.
The number of corporate assessees increased from 6.36 lakh in FY 2013-14 to6.75 lakh in FY 2014-15 registering an increase of 6.1 per cent.
Out of total 10.3 lakh scrutiny assessment cases, the Department had disposed of 5.4 lakh cases (47.8 per cent) in FY 2014-15.
Appeals pending with CIT(A) increased from 2.15 lakh in FY 2013-14 to2.32 lakh in FY 2014-15. The amount locked up in these cases with CIT(A) was Rs. 3.84 lakh crore in FY 2014-15. The amount locked up at higher levels(ITAT/High Court/Supreme Court) increased from Rs. 1.8 lakh crore (76,922 cases) in FY 2013-14 to Rs. 1.9 lakh crore (77,448 cases) in FY 2014-15.
Can they ever clear this mountain of pending litigation?