No reason for the delay to dispose of 4 and a half-year-old Appeal: Delhi HC directs Income Tax Dept to dispose of within 3 months [Read Order]

A Division Bench of Justice Rajiv Shakdher and Justice Girish Kathpalia of Delhi High Court directed the authorities to dispose of the 4 and half years pending appeal within 3 months.

The core issue, which the petitioner has raised before the Delhi High Court was that the impugned assessment order dated 30.12.2017 concerning Assessment Year (AY) 2010-11 was based on an earlier assessment order passed vis-à-vis an entity going by the name “Caruna Bal Vikas” (CBV).

It was further submitted that the Assessing Officer (AO) in passing the impugned assessment order had extracted only a part of the reassessment order dated 31.12.2016 passed in the case of CBV.

Abhishek Jebraj, who appeared on behalf of the petitioner, submitted that the reassessment order dated 31.12.2016, as it stands today, is intact, although CBV had preferred an appeal qua the same.

The bench noted that for the impugned assessment order dated 30.12.2017, a statutory appeal had been preferred, which is pending adjudication.

The petitioner’s counsel also submitted that the main ground on which exemption under Sections 11 and 12 of the Income Tax Act, 1961 was denied was that the petitioner fell within the purview of Section 13(1)(b) of the Income Tax Act.

Mr Jebraj asserted that the appeal has been pending since February 2019 and, for some reason or the other, has not been taken up for adjudication, causing detriment to the interests of the petitioner.

Conversely, the bench observed that the respondent’s counsel Martha was guilty of delay and laches.

After considering the submissions of both sides, the bench directed that respondent authorities had to dispose of all pending appeals at the earliest, though not later than three (3) months from the date of receipt of a copy of the judgment.

Also, while adjudicating the appeal, the authorities had to take into account the entirety of the reassessment order dated 31.12.2016 passed in the case of CBV and the judgments on the issue concerning the restricted grant.

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