Income Tax Department As part of efforts to reduce disputes and improve services to taxpayers, 2.22 lakh appeals were disposed of in the last financial year, an increase of 29% over the previous financial year, PTI reported.CBDT Chairman Ravi Aggarwal, in a letter to officials, said actions in the current financial year (2026-27) should be “guided” by data, “proportional” and aligned with the goal of a “fair and efficient” tax system.He said the department has “significantly” strengthened its use of data analytics and intelligence-driven approaches to identify risks and guide enforcement.Aggarwal said a “theme-based” investigation was conducted to address issues such as false claims of deductions and suppression of business receipts.According to official data, 2,22,540 appeals were disposed of in 2025-26, while 1,72,361 appeals were disposed of in 2024-25, showing an increase of 29.11%.Of the 1,51,239 inheritance appeals pending at the beginning of the year, 50,654 cases were disposed of through a “special drive”, reinforcing the department’s “commitment” to bringing “certainty” to the tax system.As a result, the carry-forward pendency of legacy appeals declined by 33.49% compared to the previous year.The department disposed of 72,933 complaints during the financial year with an average resolution time of 47 days.Additionally, 1,32,125 correction applications were processed and 5,68,621 orders of effect (OGE) were issued.Overall, more than 10.26 lakh cases in OGE, corrections and grievance redressal were settled, reducing the outstanding demand by Rs 12,33,469 crore, officials said.Agarwal said around 1.56 lakh trusts were allowed registration and re-registration, many of which were brought from paper records to the digital system.The department also signed 219 advance pricing agreements (APAs), up 25.86% from 174 in the previous financial year, aimed at providing certainty in transfer pricing.He said 2026 holds “special significance” with the implementation of the new Income Tax Act, 2025 and Income Tax Rules, 2026, which aim to increase ease of compliance while strengthening non-intrusive, data-driven tax administration.