MCN DEVELOPERS vs. ASSISTANT COMMISSIONER OF INCOME TAX

WP/24349/2024HC KarnatakaKAHC01051505202404 September 2024Author: S.R.KRISHNA KUMAR3 pages

AI SummaryRemanded

What did the High Court hold?

The High Court of Karnataka acknowledged that the appeal filed by the petitioner on January 11, 2020, had been pending for more than 4.5 years, which is considerably longer than the one-year period stipulated under Section 250(6A) of the Income Tax Act, 1961. Consequently, the Court disposed of the writ petition by directing the Appellate Commissioner (Respondent No. 3) to dispose of the petitioner's appeal on its merits within a period of two months from the date of receipt of a copy of the order. The ratio decidendi is that statutory time limits for disposal of appeals should be adhered to, and in cases of significant delay, the High Court can issue a writ of mandamus to ensure compliance.

What were the facts?

The petitioner, MCN Developers, filed an appeal before the Appellate Commissioner (Respondent No. 3) on January 11, 2020. The appeal, bearing acknowledgment number 290415981110120, remained pending for over 4.5 years. This delay significantly exceeded the one-year period stipulated under Section 250(6A) of the Income Tax Act, 1961. The petitioner filed a writ petition before the High Court of Karnataka seeking a direction to the Appellate Commissioner to consider and dispose of the appeal on its merits within the time stipulated by Section 250(6A) of the IT Act.

What were the issues?

1. Whether the Appellate Commissioner has failed to dispose of the appeal filed by the petitioner within the time stipulated under Section 250(6A) of the Income Tax Act, 1961? (Question of law and fact, concerning Section 250(6A) of the IT Act). Assessee's contention: The appeal filed on January 11, 2020, has been pending for over 4.5 years, which is significantly beyond the one-year period contemplated by Section 250(6A) of the IT Act. The petitioner seeks a direction for expeditious disposal. Revenue's contention: No specific arguments were recorded for the revenue in the judgment.

Which sections of the Income-tax Act were involved?

Section 250(6A)

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 4TH DAY OF SEPTEMBER, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 24349 OF 2024 (T-IT) BETWEEN:

MCN DEVELOPERS NO. 2253 MCN COMPLEX, 1ST FLOOR, KODIGEHALLI MAIN ROAD, SAHAKARANAGARA POST, BANGALORE-560092 REP BY ITS PARTNERS, SRI K N MANJUNATH REGISTERED UNDER PARTNERSHIP ACT …PETITIONER (By Sri.Nagharish G S, adv. for Sri M V Seshachala, Sr.Adv.) AND:

ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE -6(3)(1), BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, KORAMANGALA, BANGALORE-560095.

PRL COMMISSIONER OF INCOME TAX 6 BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, KORAMANGALA, BANGALORE-560095.

COMMISSIONER OF INCOME TAX (APPELAS)-6 BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, KORAMANGALA, BANGALORE-560095. …RESPONDENTS (BY SRI.Y V Raviraj - ADVOCATE)

Digitally signed by LEELAVATHI S R Location: HIGH COURT OF KARNATAKA

THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF CONSTITUTION OF INDIA PRAYING TO DIRECT THE APPELLATE COMMISSIONER R-3 TO CONSIDER THE APPEAL DTD. 11.01.2022 ANNX-B BEARING ACKNOWLEDGEMENT NO. 290415981110120 AND DISPOSE OF THE SAME ON MERITS AS PER THE TIME STIPULATED IN SECTION 250(6A) OF THE IT ACT WITHIN A PERIOD OF THREE MONTHS IN THE INTEREST OF JUSTICE AND EQUITY AND ETC.

THIS PETITION, COMING ON FOR FINAL HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR ORAL ORDER This petition is filed for the following reliefs : i) Issue a writ of mandamus directing the Appellate Commissioner third respondent to consider the appeal dated 11.01.2020 Annexure-B bearing acknowledgment No.290415981110120 and dispose of the same on merits as per the time stipulated in Section 250(6A) of the IT Act within a period of three months in the interest of justice and equity; ii) Issue such other writ or direction as this Hon'ble Court deem fit to grant in the facts and circumstances of the present case.

The material on record discloses that appeal filed by the petitioner on 11.1.2020 is pending for more than 4 1/2 years which is much beyond the period of one year as

contemplated under Section 250(6A) of the Income Tax Act, 1961. 3. Under these circumstances, the petition stands disposed of directing respondent no.3-Appellate Commissioner to dispose of the appeal filed by the petitioner within a period of two months from the date of receipt of a copy of this order.

Sd/- (S.R.KRISHNA KUMAR) JUDGE

rs List No.: 1 Sl No.: 22

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