A.D. Electrosteel Co. Pvt. Ltd. & Anr. Vs Union of India & Ors. (Calcutta High Court)
The Calcutta High Court has directed the Income Tax Appellate Tribunal (ITAT) to expeditiously dispose of an appeal filed by A.D. Electrosteel Co. Pvt. Ltd. The company filed a writ petition seeking to cancel a demand notice issued under Section 156 of the Income Tax Act, 1961, based on an assessment order from 2015.
The case has a complex procedural history. An initial appeal against the assessment order for the assessment year 2012-13 was dismissed by the Commissioner of Income Tax (Appeals) in 2016 for non-prosecution. The company’s subsequent appeal to the ITAT was also dismissed for non-prosecution in 2018. A restoration application, filed to recall the ITAT’s dismissal, was rejected on April 22, 2024, due to a significant delay of 1,757 days and the non-appearance of the assessee.
The company then took the matter to the Calcutta High Court’s Division Bench. On May 6, 2025, the Division Bench noted the high-pitched nature of the original assessment and the lack of a proper explanation for the delay. It nonetheless set aside the ITAT’s order and granted the company permission to file a fresh application before the Tribunal.
