High Court Orders Swift Hearing for Tax Appeal, Emphasizes Timely Resolution

The High Court directed the tax authorities to expedite the hearing of the petitioner's appeal against the assessment order, emphasizing the statutory requirement for timely resolution. The court ordered the appeal to be heard and decided within three months, in accordance with the relevant provisions of the Income Tax Act. The court disposed of the Writ Petition without costs, instructing closure of any pending miscellaneous applications.

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Issues involved: Delay in hearing appeal, Garnishee notices issued to petitioner's banker

Delay in hearing appeal:
The petitioner, an assessee under the Income Tax Act, filed an appeal against the assessment order for the year 2017-18. The assessment order was passed on 14.11.2019, assessing the petitioner's total income at Rs. 69,22,910.00 and initiating penalty proceedings under Section 271AAC of the Act. Despite filing the appeal on 23.02.2020, it had not been taken up for hearing. Meanwhile, garnishee notices were issued to the petitioner's banker by the 2nd respondent. The petitioner's grievance was that the appeal had not been heard for over three years.

Garnishee notices issued to petitioner's banker:
The 2nd respondent issued a notice under Section 226(3) of the Act to the Branch Manager of State Bank of India, Bodhan Branch, on 21.01.2020, for the attachment of the petitioner's bank account. This action was taken while the appeal filed by the petitioner was pending and had not been heard.

Judgment Details:
The High Court, after hearing both parties, emphasized the need for expeditious hearing of the petitioner's appeal. Referring to Sub-Section (6A) of Section 250 of the Act, which mandates hearing and deciding appeals within a year, the Court directed the 1st respondent to hear and dispose of the petitioner's appeal against the assessment order dated 14.11.2019 within three months from the date of the Court's order. The Court disposed of the Writ Petition without any order as to costs, and any pending miscellaneous applications in the Writ Petition were to be closed.

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