2022 (4) TMI 1604 - HC - Income Tax

Priority/out of turn hearing of the appeals - Writ of Mandamus to call for the records of the writ petitioner company and to direct the respondent to dispose the same within a stipulated time - Indulgence of this Court to issue a direction to the respondent appellate authority to decide the appeal at an early date in view of the large pendency of appeals pending before the appellate authority - HELD THAT - Insofar as the prayer sought for herein is concerned it is only for a mandamus to direct the appellate authority to decide the appeal filed by the petitioner on merits within a time frame. In this context even though attempt has already been made by the assessee to file a petition for stay the same is also still pending where no decision seems to have been taken. When that being so the petitioner assessee may not be remedy-less during the pendency of the appeal. Therefore this Court taking into account the facts and circumstances and having regard to the submissions made by both sides is inclined to dispose of this writ petition with the following order. That there shall be a direction to the respondents / appellate authority to decide and dispose of the appeal filed by the petitioner dated 22.10.2021 against the assessment order dated 23.09.2021 for the Assessment Year 2018-2019 on merits and in accordance with law after giving a fair hearing to the petitioner within a period of four months from the date of receipt of a copy of this order.

Summary

Issues:
1. Writ of Mandamus sought for timely disposal of appeal by the appellate authority.

Analysis:
The petitioner, an assessee under the respondents, had an assessment order passed for the assessment year 2018-2019 under Section 143(3) read with Section 144B of the Income Tax Act, 1961. Subsequently, the petitioner filed a regular quantum appeal before the Commissioner of Income Tax (Appeals) on 22.10.2021, which is still pending. An application for stay under Section 220(6) of the Act is also pending before the assessing authority. The petitioner sought a direction through a Writ of Mandamus for the appellate authority to decide the appeal on merits and in accordance with the law at an early date, believing the issue raised would favor the assessee.

The respondent's counsel argued that the petitioner need not seek a mandamus from the Court as the assessing authority can decide on the consequential action pursuant to the assessment order, including the pending stay application. The respondent contended that the large pendency of appeals before the appellate authority does not warrant special treatment for the petitioner's appeal. After considering both sides' submissions and the materials on record, the Court acknowledged the petitioner's prayer for a mandamus to direct the appellate authority to decide the appeal within a time frame.

The Court, recognizing the pending appeal and stay application, directed the appellate authority to decide and dispose of the appeal against the assessment order for the assessment year 2018-2019 on merits and in accordance with the law within four months from the date of receipt of the Court's order. The writ petition was disposed of with this direction, and no costs were imposed.