CHANDIGARH, April 8: – Taking serious note of delays in adjudicating income tax appeals, the Punjab and Haryana High Court has stressed strict adherence to the one-year disposal timeframe prescribed under the Income Tax Act.
A division bench of Justice Arun Palli and Justice Sudeepti Sharma noted a rising number of writ petitions seeking quicker resolutions, pointing out that prolonged pendency obstructed revenue recovery.
“Substantial amounts remain blocked while these appeals await decisions,” the judges stated. “It is imperative that appellate authorities make every effort to dispose of appeals preferably within one year, as required under the Act.”
The observation came during a case involving an appeal that remained undecided for nearly five years. “The present writ petition is yet another instance where the petitioner filed the appeal in 2020 and, to date, no progress has been made,” the bench noted.
Quoting Section 250 of the Income Tax Act, the court underscored that both the Joint Commissioner (Appeals) and the Commissioner (Appeals) were expected to resolve appeals within a year from the end of the financial year in which the appeal was filed.
While acknowledging the clause “where it is possible,” the bench noted that the legislative intent favored time-bound resolution. “Where appeals remain pending beyond this period, the delay must be clearly recorded in the zimni orders, indicating whether it stems from the assessee or the department. Even then, resolution should not exceed two years,” the judges added.
The court referred to a previous ruling where it had directed the resolution of a decade-old appeal within six months. In the present case, the Commissioner of Income Tax-3 (Appeals) has been asked to decide the matter within three months.
For implementation, the bench ordered that copies of its ruling be sent to the Union of India, the Central Board of Direct Taxes, and relevant tax officers, including the Commissioner of Income Tax-3 (Appeals), the Assistant Commissioner, and the Principal Commissioner of Income Tax (Central).
