The Delhi High Court has recently raised alarm over the mounting backlog of appeals at the National Faceless Appeal Centre (NFAC), a body established to streamline tax assessments. With a staggering 540,000 appeals awaiting resolution, the court has urged immediate action to tackle the growing delays.
Judicial Concern
A division bench, led by Chief Justice Devendra Kumar Upadhyaya and Justice Tushar Rao Gedela, expressed dismay at the NFAC’s failure to expedite appeal disposals. This bottleneck contradicts the very essence of the NFAC’s creation, which was intended to facilitate swift and efficient handling of tax-related matters.
Legal Framework
The NFAC operates under Sections 143 and 144 of the Income Tax Act, 1961, with its mandate expanded by Section 144B, introduced through recent legislative amendments. This framework was designed to modernize and expedite the appeal process, but implementation challenges have hindered its effectiveness.
Catalyst Case
The court’s attention was drawn to this issue through a writ petition filed by a taxpayer whose appeal had languished for over 24 months. The petitioner’s requests included prompt resolution of their case, financial compensation for the delay, and the establishment of guidelines to protect taxpayers from undue stress during appeals.
Remedial Roadmap
In response to the court’s concerns, tax authorities presented a strategic plan aligned with the Central Action Plan 2024-25. This roadmap outlines a time-bound approach to clear the backlog, demonstrating the department’s commitment to addressing the court’s directives.
Judicial Directive
The court mandated an 8-week resolution timeline for the petitioner’s case, underscoring the urgency of the situation. This ruling in “Suparshva Swabs (I) v. National Faceless Appeal Centre & Ors.” (W.P.(C) 356/2025) serves as a precedent, highlighting the need for systemic reforms within the NFAC to ensure timely justice for taxpayers.
Delhi High Court, National Faceless Appeal Centre (NFAC), tax appeals, backlog, judicial concern, Income Tax Act, write petition, taxpayer rights, appeal resolution, Central Action Plan, systemic reforms.
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