Statutory Income Tax Appeal Pending for Over Two Years: Calcutta HC Orders Expeditious Disposal, Refuses Refund Direction without Stay [Read Order]
The court held that while a statutory income tax appeal pending for over two years must be disposed of expeditiously, no mandatory refund can be ordered in the absence of a stay of demand.
![Statutory Income Tax Appeal Pending for Over Two Years: Calcutta HC Orders Expeditious Disposal, Refuses Refund Direction without Stay [Read Order]](https://images.taxscan.in/h-upload/2025/12/27/2115307-statutory-income-tax-appeal-pending-for-over-two-years-calcutta-hc-orders-expeditious-disposal-refuses-refund-direction-without-stay-taxscan.webp "Statutory Income Tax Appeal Pending for Over Two Years: Calcutta HC Orders Expeditious Disposal, Refuses Refund Direction without Stay [Read Order]")
In a recent ruling, the Calcutta High Court directed expeditious disposal of a statutory income tax appeal that had been pending for more than two years and refused to pass any mandatory order directing refund of adjusted amounts in the absence of a stay of demand. Dinesh Infraprojects Private Limited and another petitioner filed a writ petition before the Calcutta High Court...
In a recent ruling, the Calcutta High Court directed expeditious disposal of a statutory income tax appeal that had been pending for more than two years and refused to pass any mandatory order directing refund of adjusted amounts in the absence of a stay of demand.
Dinesh Infraprojects Private Limited and another petitioner filed a writ petition before the Calcutta High Court complaining of prolonged delay in disposal of their statutory appeal filed against an intimation dated 18 December 2021 issued under Section 143(1) of the Income Tax Act, 1961.
The petitioners had filed the statutory appeal on 2 January 2023 before the appellate authority. Despite the passage of more than two years, the appeal remained pending without any decision, which led the petitioners to approach the High Court seeking intervention.
Read More: Bombay HC Refuses to Interfere with Anti-Corruption BureauSummons at Enquiry Stage [Read Order]
The petitioners also raised a grievance that during the pendency of the appeal, the Revenue Authorities had adjusted various sums from amounts refundable to them for different assessment years. According to the petitioners, these adjusted amounts were much higher than the outstanding tax demands for the assessment years between 2021 and 2025.
The petitioners’ counsel, Mr. Ray, argued that the continued pendency of the appeal was arbitrary and caused serious prejudice. They further argued that the Revenue Authorities should be directed to refund the excess amounts that had been adjusted against refundable sums.
The bench comprising Justice Om Narayan Rai observed that the appeal had been pending for more than two years and required early disposal. The court explained that such delay in deciding a statutory appeal was not desirable and justified judicial intervention.
The court also observed that the petitioners had not made any request for stay of demand. In such circumstances, the court explained that it could not pass a mandatory order directing refund of the adjusted amounts.
The court ordered the appellate authority to dispose of the appeal preferably within eight weeks from the date of communication of its order, strictly in accordance with the law.
The court pointed out that the petitioners were free to make an appropriate representation before the appellate authority regarding the refund and adjustment issue. The court further observed that if such a representation was made, the appellate authority would consider and dispose of it in accordance with the law.
The writ petition was disposed. No order as to costs was passed.
Support our journalism by subscribing to Taxscanpremium. Follow us on Telegram for quick updates
