The central government is close to losing Rs 100 crore (Rs 1 billion) as more than 1,000 income tax-related appeals have been pending before the various benches of the Income Tax Appellate Tribunals beyond the mandatory 40 days to as long as 400 days.

K Shivaram, National President of the All India Federation of Tax Practitioners, the apex body for tax practitioners in India, said: "The government of India may be losing close to Rs 100 crore because of the delay in filing these matters to the high court." As of today 1,63,000 appeals are pending before various benches of the ITAT, of which 47,000 appeals are from Mumbai and the Mumbai zone.

The association has written to Arun Jaitley, minister for law and justice, on two key issues -- appointment of temporary members of the Income Tax Appellate Tribunal and that the president of the Income Tax Appellate Tribunal should function from Mumbai to speed up matters.

He said that on the first matter, the Income Tax Appellate Tribunal has 53 sanctioned benches. The government had the power to appoint ad hoc members and it has approved the appointment of ad-hoc members after their retirement."

The appointment of retired members, as ad-hoc members, will definitely shake the confidence of the public in this institution. Taxpayers apprehend that it may lead to miscarriage of justice. As of today the members of the tribunal retire at the age of 62 and this helps the members to discharge their duties without any favour or fear.

"The association is of the view that members who desire an extension may be unable to discharge their duties and if they decide matters against the government they may not get an extension."

The way to speed up the judicial system, according to him, is not by appointing new ad hoc members who are judges way beyond their retiring age but by adopting new emerging technologies. "What we require is better management and quality of justice," he said.

Shivaram also said that the government will be able to streamline the justice delivery process and appeals can be disposed of within two years of filing them. "We are also of the opinion that the government should initiate a debate before appointing temporary members in the interest of the institution and taxpayers."

He pointed out that when the headquarters of the Income Tax Appellate Tribunal is in Mumbai, the President of the institution who has to discharge his duties from Mumbai is functioning from Delhi and the senior vice president who has to function from Delhi is functioning from Chennai.