CBDT Disposes of 2.24 Lakh Tax Appeals, Processes Nearly All Verified Returns in FY 2025–26

CBDT Chairman Ravi Agrawal presented the Income Tax Department’s annual performance update during the 167th Income Tax Day celebrations, highlighting progress in reducing litigation, processing returns, resolving taxpayer grievances and improving tax administration through technology.

Tax Appeal Pendency Declines

The Income Tax Department disposed of more than 2.24 lakh appeals during FY 2025–26, compared with approximately 1.79 lakh fresh appeals filed during the same period. As disposals exceeded new filings, the Department recorded a substantial net reduction in pending tax appeals.

Nearly 6,000 departmental appeals were also withdrawn following revisions to the monetary limits governing the filing of appeals.

The Department completed appeal-effect proceedings in 5.68 lakh out of 6.29 lakh cases, representing a disposal rate of 90.3%. Appeal-effect orders are issued to implement the decisions of appellate authorities and determine the resulting tax consequences.

Nearly All Verified Income Tax Returns Processed

Processing of verified income tax returns for Assessment Year 2025–26 has reached near-completion. Out of approximately 8.6 crore verified returns, only around 1.5 lakh remained pending.

The Department received 3.82 crore verified returns involving refund claims. Of these, approximately 1.47 lakh were pending due to ongoing risk-assessment procedures.

Taxpayer Grievance Resolution Improves

During FY 2025–26, the Department resolved 72,933 of the 77,765 grievances received through the Centralised Public Grievance Redress and Monitoring System (CPGRAMS), achieving a disposal rate of approximately 94%.

Under the e-Nivaran mechanism, 3,26,217 of the 3,43,269 registered grievances were resolved, translating into a disposal rate of nearly 95%.

The CBDT Chairman stated that the Department is also examining the underlying causes of frequently reported issues to prevent recurring taxpayer grievances.

Advance Pricing Agreements Cross 1,000 Mark

CBDT concluded 220 Advance Pricing Agreements during FY 2025–26, one of the highest annual figures recorded since the programme was introduced.

The cumulative number of APAs reached 1,035 by March 2026. These agreements provide greater tax certainty to businesses by establishing an agreed methodology for determining the pricing of international transactions between associated enterprises.

Technology-Based Tax Administration Expanded

The Income Tax Department is implementing several technology-modernisation projects, including:

• PAN 2.0
• ITBA 2.0
• CPC 2.0
• INSIGHT 2.0
• IEC 3.0

The Department is also using the SAKSHAM NUDGE framework to encourage compliance through targeted, data-based and non-intrusive communication.

Its virtual taxpayer assistance platform, “Kar Saathi”, has recorded approximately 38 lakh visits.

Taxpayer Outreach Initiatives Conducted

The Department organised 304 physical outreach programmes, primarily across Tier 1 and Tier 2 cities.

It also conducted 11 Samvaad sessions concerning the new Income-tax Act and 12 sessions focused on the revised income tax forms. These initiatives were supported by explanatory videos, podcasts and other digital information resources.

The CBDT Chairman said the Department’s initiatives are collectively aimed at strengthening public confidence in tax administration. He emphasised that an effective tax system requires cooperation among taxpayers, tax professionals, banks, reporting entities, government institutions and departmental officers. CA Sansaar