Tax litigation refers to legal measures concerning issues brought about by taxpayers’ non-payment or deferred payment of taxes, the government’s unauthorized or undesired tax collection, etc. When legal action is taken to resolve problems brought about by violations of tax laws, this is referred to as tax litigation.

1. Filing of Returns– To prevent paying any sort of fines, the taxpayer must finish the return filing procedure prior to the deadline.
2. Assessment Order Passing– Following the return filing procedure, the assessment assessor will carefully review the return, and after that, the assessment assessor will issue an assessment order.
3. Appeal Submission– The following hierarchy listed may be used to make an appeal if the customer is not content with the evaluation order made by the assessment assessor.

• The Tax Authority
• Income Tax Appellate Tribunal
• The High Court
• The Supreme Court

Authority to consider tax litigation

• Tax Authority, which functions in a quasi-judicial capacity, is where the tax complaint is initially brought up. It serves as an examiner and a judge.
• The Income Tax Appellate Tribunal (ITAT), the next administrative body, is also quasi-judicial and hears appeals similar to that of a civil court.
• The High Court and the Supreme Court, the other two appellate bodies, are formal civil courts that deal with cases having significant legal issues.
• The Tribunal renders decisions on cases involving either legal, factual, or a combination of both issues. Taxpayers are not constrained in any way in their ability to appeal to the Tribunal. Although, in the case of tax authorities, the CBIC occasionally establishes financial thresholds for tax demands that can no longer be challenged in court.
• If the parties who appealed are dissatisfied with the Tribunal’s decision, they may file an appeal in the jurisdictional High Court. However, this type of appeal can only be sought if the dispute includes a legal problem. If the dispute relates to a question of fact, then the Tribunal’s decision is binding on all parties.
• The judgment of the High Court may also be appealed by submitting a case to the Supreme Court of India.
• Since Supreme Court is the country’s superior court, the Supreme Court’s ruling is irrevocable and enforceable against the parties, and no additional appeals may be made against its decisions.