Appellate authority ordered to decide taxpayer's appeal dated 22.10.2021 against AY2018-19 assessment on merits within four months

HC directed the appellate authority to decide on the taxpayer's appeal dated 22.10.2021 against the assessment order dated 23.09.2021 for AY 2018-19 on merits and in accordance with law, after affording a fair hearing, within four months of receipt of the order. The writ petition was disposed with that mandamus; the pending petition for stay remains undecided, and the court found the taxpayer is not remedy-less during the appeal's pendency.

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Issues:
1. Writ of Mandamus sought for timely disposal of appeal by the appellate authority.

Analysis:
The petitioner, an assessee under the respondents, had an assessment order passed for the assessment year 2018-2019 under Section 143(3) read with Section 144B of the Income Tax Act, 1961. Subsequently, the petitioner filed a regular quantum appeal before the Commissioner of Income Tax (Appeals) on 22.10.2021, which is still pending. An application for stay under Section 220(6) of the Act is also pending before the assessing authority. The petitioner sought a direction through a Writ of Mandamus for the appellate authority to decide the appeal on merits and in accordance with the law at an early date, believing the issue raised would favor the assessee.

The respondent's counsel argued that the petitioner need not seek a mandamus from the Court as the assessing authority can decide on the consequential action pursuant to the assessment order, including the pending stay application. The respondent contended that the large pendency of appeals before the appellate authority does not warrant special treatment for the petitioner's appeal. After considering both sides' submissions and the materials on record, the Court acknowledged the petitioner's prayer for a mandamus to direct the appellate authority to decide the appeal within a time frame.

The Court, recognizing the pending appeal and stay application, directed the appellate authority to decide and dispose of the appeal against the assessment order for the assessment year 2018-2019 on merits and in accordance with the law within four months from the date of receipt of the Court's order. The writ petition was disposed of with this direction, and no costs were imposed.

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