While considering an appeal under Section 260A of the Income Tax Act, the Allahabad High Court held that the Income Tax Appellate Tribunal cannot dismiss adjournment requests and issue ex parte orders without providing reasons.
The Allahabad High Court observed that allowing such actions would undermine the parties’ right to a fair and reasonable opportunity of hearing.
The division bench comprising Justice Saumitra Dayal Singh and Justice Indrajeet Shukla held that, “While inordinate delays in judicial decision making is not healthy and expeditious disposal of the proceedings is a goal that all Courts, Tribunals and Authorities may pursue, at the same time, they may remain conscious of their non-negotiable commitment to afford reasonable opportunity of hearing to the parties before such judicial decision making is achieved.”
In 2025, the appeals before the Tribunal were submitted. Within 2 months, they were listed on two dates. The applicant had received adjournments on both dates. The first was granted while obtaining the second, the court passed an ex parte order against his interest without recording reasons.
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The applicant remained qualified for recording the reasons for rejection of the second application even after the first adjournment, the court stated. It was discovered that in this case, the non-recording of the reasons was detrimental to the interest of the taxpayers, particularly given that the hearing was concluded on the same day.
Accordingly, the Appeal Was Permitted
Section 260A of the Income Tax Act
Section 260A of the Income Tax Act delivers the right to file an appeal before the High Court against an order passed by the Income Tax Appellate Tribunal (ITAT).
The same appeal can be made when the case involves a significant question of law, rather than just factual disagreements. The High Court determines whether such a legal question exists and then proceeds to hear the appeal.
U/s 260A, the appeal should be submitted within 120 days from the order date of the ITAT, and the decision of the High Court binds till further appealed to the Supreme Court.
The same section assures judicial oversight over ITAT rulings, particularly in cases that contain significant interpretations of tax law.
| Case Title | Ashok Kumar Agarwal vs. The Assistant Commissioner Of Income Tax |
| Case No. | No. – 77 of 2025 |
| Counsel for Appellant | Rahul Agarwal |
| Conunsel for Respondent | Ankur Agarwal |
| Allahabad High Court | Read Order |
