I-T department disposed of 2.22 lakh appeals during last financial year: CBDT Chairman

New Delhi: The Income Tax Department disposed of 2.22 lakh appeals in 2025-26, recording a nearly 29 per cent increase over the previous fiscal, as part of efforts to reduce litigation and enhance taxpayer services, according to official data.

In a year-end communication, Ravi Agrawal, Chairman of the Central Board of Direct Taxes (CBDT), praised officials for their performance and emphasised that actions in FY27 should be guided by data, proportionate enforcement and the goal of building a “fair and efficient” tax system.

Agrawal noted that the department has significantly strengthened its use of data analytics and intelligence-driven methods to identify risks and guide enforcement. It also undertook “theme-based” investigations to address issues such as incorrect deduction claims and systemic suppression of business receipts.

During FY26, the department disposed of 2,22,540 appeals, compared with 1,72,361 in FY25, reflecting a growth of 29.11 per cent. Of the 1,51,239 legacy appeals pending at the beginning of the year, 50,654 cases were cleared through a special drive aimed at bringing greater certainty to the tax system. This resulted in a 33.49 per cent reduction in carry-forward pendency of legacy appeals.

The department also resolved 72,933 grievances during the year, with an average resolution time of 47 days. Additionally, 1,32,125 rectification applications were processed and 5,68,621 orders giving effect (OGEs) were issued.

Overall, more than 10.26 lakh cases—covering rectifications, OGEs and grievance redressal—were disposed of, leading to a reduction of Rs 12.33 lakh crore in outstanding tax demand.

The CBDT also granted registrations or re-registrations to about 1.56 lakh trusts under the charitable institutions category, with many legacy records digitised. Further, the department signed 219 advance pricing agreements (APAs), up 25.86 per cent from 174 in the previous fiscal, providing greater certainty to taxpayers in transfer pricing matters.

Agrawal highlighted that 2026 holds “special significance” with the rollout of the Income Tax Act, 2025 and Income Tax Rules, 2026. These reforms are aimed at simplifying compliance while strengthening a non-intrusive, technology-driven tax administration.