Income Tax Appeal regarding Section 80B(2) Deduction pending before CIT(A) for 5 Years: Madras HC orders to dispose within 3 Months [Read Order]

The Madras High Court has directed the Commissioner of Income Tax ( Appeals ) [ CIT(A) ] to resolve the income tax appeal within a period of three months which was pending for 5 years.

The petitioner, Pandyan Grama Bank filed their return of income for the assessment year 2016-17 on 30.09.2016. Subsequently, upon the reopening of assessment, a re-assessment order was issued on 31.12.2018, prompting the petitioner to file an appeal before the CIT Appeals in Madurai on 29.01.2019.

Taking into account the dates, it is evident that the appeal was filed in January 2019, while the ruling on the current writ petition was issued on 7th March 2024. This indicates a delay of five years in resolving the appeal.

The petitioner counsel submitted that the issue involved in the appeal relates to the eligibility of the petitioner for deduction under Section 80B(2) of the Income Tax Act, 1961. She also submits that this issue is covered by several judgments of the Income Tax Appellate Tribunal.

S. Premalatha, standing counsel representing the respondents, acknowledged the receipt of the appeal and expressed willingness to cooperate in expediting the process. She suggested that setting a reasonable timeframe for disposal would facilitate swift resolution.

Taking cognizance of the submissions from both parties, the bench of Chief Justice Sanjay V. Gangapurwala and Justice D. Bharatha Chakravarthy  disposed of the petition by instructing CIT(A) to dispose of the petitioner's appeal within a maximum period of three months from the date of receipt of the court's order.

To Read the full text of the Order CLICK HERE

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