The Income Tax Department has drawn up an aggressive litigation management strategy for 2026-27 with a view to speeding up disposal of tax appeals. The new drive will focus on high-value disputes, and cutting long-pending legacy cases despite substantial vacancies in appellate authorities. It has disposed of over 2.24 lakh appeals in FY26, substantially higher than the 1.79 lakh fresh appeals instituted during the year, bringing down pending appeals to 4.95 lakh from 5.4 lakh a year earlier, according to the Central Action Plan (CAP) 2026-27.