Janhavi Promoters Private Limited Vs DCIT (Calcutta High Court)
The Calcutta High Court considered a writ petition challenging the inaction of the income tax appellate authority in complying with a Tribunal direction dated 21.01.2025. The Tribunal had restored the matter to the Commissioner of Income Tax (Appeals) with a direction to pass a speaking order for Assessment Year 2015-16 after noting that no appellate order had been passed despite repeated opportunities given to the department to provide information.
The petitioner subsequently filed an application dated 30.04.2025 seeking early disposal of the appeal, but the appeal remained pending even after being transferred to another appellate authority. The petitioner contended that the Tribunal’s direction had remained uncomplied with for over 17 months. The respondents did not object to the request for early disposal.
The High Court held that the failure to comply with the Tribunal’s binding direction for over 17 months amounted to non-compliance of a judicial order. It observed that an assessee cannot be left remediless due to administrative inaction and that such delay violates the principles of natural justice and the right to speedy justice under Article 14 of the Constitution. The Court directed the appellate authority to decide the application for early disposal within six weeks by passing a reasoned order after hearing the petitioner and to communicate the decision within one week thereafter.
