ITAT considering establishing e-courts Use of IT to clear backlog of cases in smaller cities

The Income Tax Appellate Tribunal (ITAT) has recently taken a decision to establish “e-courts” or use webcasts to clear the backlog of cases in smaller cities. The quasi-judicial body, whose bench has one judicial and one accountant member, is the highest income tax authority. Unfortunately a number of ITAT Benches are non-functional due to a variety of reasons including lack of presiding officers.

The Income Tax Appellate Tribunal (ITAT) has recently taken a decision to establish “e-courts” or use webcasts to clear the backlog of cases in smaller cities. The quasi-judicial body, whose Bench has one judicial and one accountant member, is the highest income tax authority. Unfortunately some ITAT Benches are non-functional due to a variety of reasons including lack of presiding officers.

As reported in Business Standard, there are around 55,000 appeals pending before various Benches of the ITAT across the country. The proposal to establish “e-courts” is certainly one way to clear the backlog of cases and the ITAT shall be holding a trial run for matters pending before the Nagpur and Allahabad Benches. The said matters shall be heard by the New Delhi Bench from May 14^th 2012 to 25^th May 2012.

According to Freddy Daruwala, Partner at Nasikwala Law Office, the proposal is a “step in the right direction” especially in areas where the ITAT has not established a permanent Bench. Daruwala also notes that “....the flexibility proposed for an assessee/IT Department to  opt in and out of the e-courts option” is a positive one since, “if a party to a proceeding opts out of an e court option, the onus for the consequent delay will be on such party rather than on the system.”