Introduction
The Bombay High Court has sharply criticized the Income Tax Appellate Tribunal (ITAT) for its repeated delays in issuing orders, violating the 90-day deadline stipulated by Rule 34 of the Income Tax (Appellate Tribunal) Rules, 1963. This development emerged from the case Rajesh Hemrajani v. Income Tax Appellate Tribunal & Anr.
Court’s Directive
In a significant order dated July 31, a division bench comprising Acting Chief Justice Ravindra Ghuge and Justice Gautam Ankhad mandated that all ITAT benches must adhere to the 90-day deadline for pronouncing decisions. The order came in response to a petition filed by Mumbai-based litigant Rajesh R Hemrajani, who expressed his frustration with the prolonged delay in the resolution of his appeal.
Petitioner’s Grievance
Hemrajani’s appeal had been fully argued on three separate occasions without a final decision being reached. Twice, the judge released the case after the statutory period for pronouncement had lapsed. The High Court noted, “Our judicial conscience is shocked by the above-stated information. It cannot be countenanced that a matter closed for judgment is released without a judgment even when Rule 34 mandates a decision within 90 days.”
Case Background
The appeal was initially heard by a bench consisting of judicial member Rahul Chaudhary and accountant member Vikram Singh Yadav, and was closed for judgment on July 1, 2025. However, it was not decided within the required 90 days. The matter was later taken up by a reconstituted bench led by Justice CV Bhadang, which reserved the decision on November 26, 2025, yet again failed to deliver within the deadline, releasing it on February 27, 2026.
Current Status
Hemrajani’s appeal is currently reserved for judgment for a third time by another bench, including judicial member Beena Pillai and accountant member Arun Khopdia, since May 13, 2026. The 90-day period for this instance is set to expire on August 13, 2026. The High Court has ordered that the judgment in Hemrajani’s case be delivered before this deadline.
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High Court’s Mandate
The High Court further directed that all income tax appellate tribunals must set a pronouncement date within 60 days of concluding hearings. Even under exceptional circumstances, the judgment should be issued by the 90th day. The Prothonotary and Senior Master of the High Court has been instructed to circulate this order for compliance across all ITAT benches.
Legal Representation
Advocates Dhruv Janssen Sanghavi, Anirudh Srinivasan, and Prajyot Sawardekar represented Hemrajani, while Advocates Subir Kumar and Ashita Aggarwal appeared for the Income Tax Officer.
