INCOME TAX ACT, 1961

Section 254

Appeal (Tribunal) - Delay in disposal of appeal - Concerned Bench of Tribunal not functioning properly due to non-posting of permanent Members -

Assessee was a development authority and it had filed separate appeals before CIT(A) contesting demand order which were dismissed. Case of assessee was that it filed separate appeals before Tribunal, which were pending for reason that concerned Bench was not functioning properly due to non-posting of permanent Members at said Bench. Held:Prima-facie, contention of assessee appeared to be correct. Despite Court's previous order, competent authority did not clearly state in instructions as to why Tribunal at Allahabad was not functioning. It led to a prima-facie belief that there was failure of duty on the part of competent authority, which amounted to denial of justice to assessee resulting in its harassment. Competent authority was directed to show cause by means of an affidavit as to why permanent Members at Allahabad Income Tax Appellate Tribunal, were not posted and why exemplary cost may not be imposed upon them for obstructing normal functioning of Tribunal.

REFERRED :

FAVOUR : Direction issued

A.Y. :

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