Getting a stay at ITAT becomes more expensive

The (ITAT) is the second level of appeal. If a taxpayer is not satisfied with the Commissioner's order (Appeals), the ITAT can be addressed.

For acute assessments, this route proved to be a savior, especially in those cases where the tax department wanted to demand the recovery of part or all of the increased tax demand.

In meritorious cases, ITAT not only granted a complete suspension of the claim, but sometimes heard it out of turn.

Plans to reduce the ITAT's staying power by proposing that as of April 1, 2020, ITAT can grant a suspension of the claim only if the taxpayer previously deposits at least 20 percent of the required tax (including the interest claim and penalty if any). “This can be found with several million rupees, very often the high-pitched assessments are in weak terrain. This will negatively affect cash flows and affect the movement of India to be perceived as favorable for taxpayers, says a chief financial officer of a diversified group.

Live plus Anish Thacker, contribuyente de la India, explica: “Al tratarse de una disposición de procedimiento, se aplicará a todas las solicitudes de suspensión que ITAT escuche a partir del 1 de abril de 2020. Si un contribuyente, por lo tanto, no tiene capacidad financiera o está limitado por cualquier otro motivo, por depositando previamente el 20 por ciento del impuesto exigido, al contribuyente no le queda plus opción que invocar la jurisdicción judicial del tribunal superior. Es probable que esta propuesta cree una dificultad considerable para los contribuyentes, donde las evaluaciones se realizan en grandes múltiplos de sus ingresos devueltos .

“A taxpayer cannot, just to be fair, knock on the doors of the Court for each tax claim. Therefore, this proposal is draconian and should be reviewed, ”he adds. In addition, the Budget proposes to reduce the ITAT's staying power to a maximum of 365 days, which is not always practical.