Tax Litigation

A obligatory fee or financial charge imposed by the government on a person or an entity is known as a tax. The Income Tax Act of 1961 governs Indian tax laws.

The beginning of legal procedures addressing problems resulting from the disregard of tax regulations is referred to as tax litigation. Due to the complexity of the taxing process and the length of the appellate process, tax litigation can be a time-consuming process. Due to the increased aggression of the tax authorities,there has been an increase in the number of tax litigation cases.

Issues that Lead to Tax Litigation

The primary problems that result in tax lawsuit are listed below.

• Personal and business matters
• Institutions that are nonprofit and charitable
• Cross-border business dealings including ascription and permanent establishment
• Transfer Price Issues, include marketing intangibles, cross-border management
  costs, captive service remuneration, royalties, transfer pricing techniques, and similar.
• Tax withholding concerns, corporate restructuring tax liability, royal income valuation
  issues, and Customs Act of 1962 issues

Categories of Tax Litigation

• Civil tax disputes
• Suing for tax crimes
• The following laws govern and
• handle civil tax litigation:
• the 1961 Income Tax Act
• (Chapters XIX-A, XIX-B and XX).
• 1962 Income Tax Regulations.
• The 1950 Indian Constitution.
• agreements to avoid double taxation.
• 2009 Regulations for the Income Tax (Dispute
• Resolution Panel).
• Regulations for the Income
• Tax Appeals Tribunal from 1963.
• Rulemaking Authority for Advance Rulings (1993).
• Regulations for the Income Tax Settlement Commission (Procedure) from 1997.
• Application of the 2015 Tax Act
• Code of Civil Procedure 1908 and Black Money (Undisclosed Foreign Income and
  Assets).
• the 1944 Central Excise Act.
• The 1962 Customs Act.
• 1994 Finance Act (Service Tax).
• Value-added tax, sales tax, admission tax, luxury tax, and advertisement tax laws at
  the state level.

The 2016 Goods and Services Tax Act (likely to be implemented from 1 July 2017).To determine whether it is worthwhile to launch tax litigation or if the issue is more
viable to compromise, it is vital to do a judicial cost-benefit analysis.   

Procedure of Tax Litigation

The following is a full explanation of the tax litigation process

• Return Filing by the Taxpayer
• To avoid fines, the taxpayer must finish the return filing process prior to the deadline.
• Passing of Assessment Order Upon the filing of the return by the taxpayer, the assessment officer will evaluate it and pass an assessment order.
• Filing of Appeal by the Taxpayer is not happy with the assessment order made by the assessment officer.
• Income Tax Appellate Tribunal High Court Supreme Court Commissioner of Income Tax

Time Limit of Filing Appeals and Appeal Hierarchy

It is possible to file an appeal (appeal) before the Commissioner of Income Tax within 30 days. During 60 days, file an appeal with the Income Tax Appellate Tribunal.
60 days are allowed for a High Court appeal.
90 days are allowed for a Supreme Court appeal.

Key Services Offered by company name

assisting in the planning of tax litigation
Investigating alternate avenues for resolving tax disputes
Help with representation before the Income Tax Appellate Tribunal, the Conflict Resolution
Panel, and the Commissioner of Income Tax (Appeals)
assistance with advance ruling application preparation and advocacy before AAR
assisting, advising, putting together, and arguing appeals and petitions before the Supreme
Court and High Courts

Frequently Asked Questions

What is the Hierarchy of Tax Litigation?

The order of tax litigation in India is as follows: An income-tax officer will conduct the assessment; if the taxpayer is dissatisfied with the assessment order, an appeal may be filed before the Commissioner of Income-Tax; any order passed by CIT(A) will be challenged before Income-Tax Appellate Tribunal; however, an order of ITAT will only be challenged before the High Court and Supreme Court on the substantial question of law; whereas, if an appeal is to be filed before Suprem

Is there Time limit for filing an appeal?

Within 30 days of the date of the AO’s order, file an appeal with the Commissioner of Income-Tax.
The Income Tax Appellate Tribunal must receive an appeal within 60 days of the CIT’s order (A)
A High Court appeal may be filed within 60 days of the date the ITAT’s order was issued.
Within 90 days of the date of the High Court’s order, an appeal must be filed with the Supreme Court.

Who can represent Taxpayers in court or Tribunals?

The Taxpayers may be represented before ITAT by a Chartered Accountant or a practising Attorney. But even before the Supreme Court and the High Court, the practising advocate is permitted to speak on behalf of his client.

What is the Key Feature of the Faceless Assessment Scheme?

artificial intelligence used for case analysis There are many further features, including the elimination of territorial jurisdiction, automatic random case assignment, document identifying numbers, and human interface elimination.

Where can the taxpayer file an appeal for the faceless assessment?

The National Faceless Evaluation Center will hear the appeal.