10 Years Delay in completing remanded Income Tax Proceeding: Kerala HC directs to decide Appeal Expeditiously [Read Order]

In a recent case, the Kerala High Court directed the Income Tax Officer to finalize the appeal expeditiously within 4 months, as there was a 10-year delay in completing Income tax proceedings which were remanded for re-adjudication.

Joshy P Mathew, the petitioner filed a petition praying to issue a writ of mandamus or any other appropriate writ, order or direction, to direct and to consider and dispose of Appeals pending on its file.

A search was conducted under the provisions of Section 132 of the Income Tax Act at the premises of the petitioner/assessee group and proceedings were initiated for assessment of the petitioner’s income under Section 153A read with Section 143(3) of the Income Tax Act, 1961 for the assessment years 2002-03 to 2008-19. The assessment orders came to be passed under the provisions of Section 153A read with Section 143(3) of the Income Tax Act. The 1st respondent dismissed the appeals vide orders.

The Income Tax Appellate Tribunal set aside the orders passed by the 1st respondent and remanded the matter back to the 1st respondent vide order for fresh consideration in the light of the judgment passed by the Court.

The counsel for the petitioner submitted that more than ten years have passed since the matter was remanded back to the 1st respondent by the Income Tax Appellate Tribunal, however, to date appeals have not been disposed of by the 1st respondent. In the meantime, the respondents are enforcing the demand in pursuance of the assessment orders.

Ms. Susie B. Varghese, Senior Standing Counsel on instruction submitted that the 1st respondent would require at least four months to finalize the appeals.

Considering the stand of the respondents, the single bench of Justice Dinesh Kumar Singh disposed of the writ petition with a direction to the 1st respondent to finalize the appeals expeditiously, preferably within four months. Further held that till four months, no coercive measure is to be taken against the petitioner to enforce the demand in pursuance of assessment orders.

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