India, March 16 -- A Parliamentary panel has asked the income tax department to set up an 'Expert Litigation Committee' to vet tax dispute cases before filing appeals at the High Courts or Supreme Court, and called for a "paradigm shift" in the department's approach to litigation.

Expressing concern over the I-T department's dismal litigation success rate at a mere 12.07 per cent at the High Court level and 14.50 per cent at the ITAT level in 2024-25, the Standing Committee on Finance, in a report, said that repeated adverse outcomes point to "systemic weaknesses" rather than isolated legal contests.

"There is a need to address the issue of filing of appeals in a mechanical manner simply because the disputed amount exceeds the prescribe...