Madras HC Orders Disposal of CIT(A) Appeal on Section 80B(2) Deduction

PandyanGrama Bank Vs National Faceless Appeal Centre (Madras High Court)

Introduction: The Madras High Court recently issued a crucial directive regarding the expeditious disposal of an income tax appeal concerning Section 80B(2) deduction. This article delves into the details of the case and the implications of the court’s decision.

Detailed Analysis: The petitioner sought the expeditious disposal of an appeal lodged before the CIT Appeals, Madurai, which had been pending for five years. The appeal pertained to the eligibility of the petitioner for deduction under Section 80B(2) of the Income Tax Act, 1961. Despite several judgments of the Income Tax Appellate Tribunal favoring the petitioner’s position, the appeal remained unresolved.

The court acknowledged the urgency of the matter and directed the CIT Appeals, Madurai, to dispose of the appeal within three months from the date of receipt of the court’s order. This directive underscores the importance of timely resolution in tax-related matters and aims to provide relief to taxpayers awaiting adjudication on crucial issues like deductions under Section 80B(2).

Conclusion: The Madras High Court’s order to expedite the disposal of the income tax appeal regarding Section 80B(2) deduction is a significant step towards ensuring efficiency and fairness in tax proceedings. By setting a clear timeline for resolution, the court has prioritized the interests of taxpayers and emphasized the importance of swift justice in matters of taxation. This decision is expected to streamline the appeals process and mitigate undue delays, thereby promoting greater confidence and compliance within the taxpayer community.

FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT

The petitioner seeks the expeditious disposal of an appeal lodged before the CIT Appeals, Madurai on 29.01.2019. The petitioner states that the return of income for assessment year 2016­-17 was filed on 30.09.2016. Upon the assessment being re-opened, it is stated that the re-assessment order was issued on 31.12.2018. Such order was carried in appeal before the CIT Appeals, Madurai on 29.01.2019.

2. Learned counsel for the petitioner submits that the issue involved in the appeal relates to the eligibility of the petitioner for deduction under Section 80B(2) of the Income Tax Act, 1961. She also submits that this issue is covered by several judgments of the Income Tax Appellate Tribunal. She further submits that hearing notices were issued by the appellate authority and that the appeal is ripe for disposal.

3. Mrs. S. Premalatha, learned standing counsel, accepts notice on behalf of the respondents. She submits that if a reasonable time frame is fixed, the appeal may be disposed of within such time.

4. In view of the above submissions, W.P.No.5783 of 2024 is disposed of by directing the first respondent to dispose of the appeal filed by the petitioner herein on 29.01.2019 (Appeal No. CIT(A) Madurai-1/10685/2018-19) within a maximum period of three months from the date of receipt of a copy of this order. No costs.