2024 (9) TMI 1197 - HC - Income Tax

Delay in disposal of the appeals filed in respect to the assessment year 2020-21 and 2018-19 - grievance of the petitioner in so far as the appeal filed on 18.10.2022 is that in terms with Section 250 (6A) Commissioner (Appeals) is required to dispose of and decide the said appeal within one year from the end of the financial year in which such appeal is filed - HELD THAT - This Court is of the opinion that there should not be any difficulty on the part of the First Appellate Authority to decide the Appeals at the earliest more so, taking into account the mandate of Section 250 (6A) of the Income Tax Act, 1961 and the guidelines dated 07.03.2024. In that view of the matter, this Court directs the Principal Commissioner of Income Tax, Guwahati to ensure that the Appeals filed by the petitioner for the assessment years 2020-21 and 2018-19 on 18.10.2022 and 10.04.2023 respectively are disposed of within a period of 3(three) months from today. Standing Counsel Income Tax shall duly intimate the Principal Commissioner of Income Tax Department, Guwahati for doing the needful in terms with the above directions. This Court also duly takes note of that till date no recovery have been made and as this Court had specifically directed the Principal Commissioner of Income Tax, Guwahati to ensure that the Appellate Authority disposes of the Appeals within 3(three) months from today, it would be in the interest of justice that till the disposal of the Appeals, no coercive measures be taken against the petitioner in respect to the demands which are the subject matter of both the Appeals.

Summary

Issues: Delay in disposal of appeals for assessment years 2020-21 and 2018-19.

The petitioner approached the court due to delays in the disposal of appeals for the assessment years 2020-21 and 2018-19, with a total demand of Rs. 5,76,70,814. The petitioner argued that as per Section 250(6A) of the Income Tax Act, the appeals should have been decided within one year from the end of the financial year in which they were filed. The petitioner contended that the appeal filed on 18.10.2022 should have been disposed of by 31.03.2024. Another appeal filed on 10.04.2023 was highlighted, citing guidelines issued by the Government of India for expeditious hearing of cases with demands over 1 Cr. The petitioner claimed no recommendation had been issued in this regard.

The court directed the Standing Counsel of the Income Tax Department to ascertain the status of the appeals. The Income Tax Officer requested the Principal Commissioner of Income Tax to prioritize the disposal of the petitioner's appeals. The petitioner confirmed that written arguments had been submitted for both appeals. The court emphasized the importance of adhering to Section 250(6A) of the Income Tax Act and the guidelines issued by the government for timely disposal of appeals.

Consequently, the court directed the Principal Commissioner of Income Tax to ensure that the appeals for the assessment years 2020-21 and 2018-19 are disposed of within three months. The Standing Counsel for Income Tax was instructed to inform the Principal Commissioner accordingly. The court also ordered that no coercive measures be taken against the petitioner regarding the demands subject to the appeals until their disposal. With these directions and observations, the writ petition was disposed of.