Rajesh R. Hemrajani Vs Income Tax Appellate Tribunal & Anr (Bombay High Court)
The Bombay High Court considered a petition concerning compliance with Rule 34 of the Income Tax (Appellate Tribunal) Rules, 1963 after the petitioner’s appeal before the Income Tax Appellate Tribunal was heard and reserved for judgment on three occasions but released twice without pronouncement within the prescribed timeline. The Court noted that Rule 34(5)(c) requires every endeavour to pronounce orders within 60 days of conclusion of hearing and, in exceptional and extraordinary circumstances, within a further period of 30 days. Observing that the petitioner had repeatedly argued the matter without obtaining a decision, the Court partly allowed the petition and directed the Tribunal to pronounce judgment in the petitioner’s case on or before 13 August 2026. The Court further directed all Income Tax Appellate Tribunals to strictly follow Rule 34 by specifying a pronouncement date within 60 days when matters are closed for judgment and, where exceptional circumstances exist, to deliver judgments on or before the 90th day. It also directed circulation of the order to all Income Tax Appellate Tribunals for compliance.
Issue: Whether the Income Tax Appellate Tribunal (ITAT) can repeatedly release matters without pronouncing judgment after they have been reserved for orders, contrary to Rule 34 of the Income Tax (Appellate Tribunal) Rules, 1963, thereby compelling litigants to argue the same appeal multiple times.
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