The Calcutta High Court has directed the Income Tax authorities to consider and decide the application filed by Janhavi Promoters Private Limited for early disposal of its pending appeal. The Court observed that an assessee cannot be left without an effective remedy merely because of administrative inaction, particularly when a binding judicial direction requiring disposal of the appeal remains unimplemented.
The matter arose from an appeal relating to Assessment Year 2015–16. By an order dated 21 January 2025, the Income Tax Appellate Tribunal had restored the matter to the Commissioner of Income Tax (Appeals) with a specific direction to pass a speaking order in respect of the assessee’s appeal. The Tribunal had noted that despite repeated opportunities, the Department had not clarified whether the appellate order had been passed or supplied to the assessee.
According to the petitioner, the Tribunal’s direction had not been complied with, and the appeal continued to remain pending. The petitioner had also submitted an application dated 30 April 2025 seeking early disposal of the appeal. Although the appeal was subsequently transferred to another authority, it remained pending for consideration and adjudication.
The High Court found that the Tribunal had expressly required the Commissioner of Income Tax (Appeals) to pass a speaking order for Assessment Year 2015–16. The Court held that failure to comply with such a binding judicial direction amounted to non-compliance with the Tribunal’s order.
Significantly, the Court observed that an assessee cannot be left remediless because of administrative inaction. It further held that an unreasonable delay in deciding a statutory appeal violates the principles of natural justice and the right to speedy justice under Article 14 of the Constitution.
The Revenue did not dispute the relevant facts and raised no objection to the petitioner’s request for early disposal. In these circumstances, the Court found no impediment in issuing a direction for time-bound consideration of the pending matter.
The Court accordingly directed the concerned authority to consider the petitioner’s application dated 30 April 2025 for early disposal of the appeal within six weeks. The authority was required to provide an opportunity of hearing to the petitioner, pass a reasoned order in accordance with law and communicate the decision within one week thereafter.
The writ petition was disposed of without examining the merits of the underlying Income Tax dispute.
The ruling reinforces that appellate authorities are required to act within a reasonable period, particularly where a superior judicial forum has already issued a specific direction. Administrative delay cannot defeat the statutory appellate remedy available to an assessee.