Bombay High Court raps ITAT for repeated delays in pronouncing orders, breaching 90‑day deadline

The Bombay High Court has pulled up the Income Tax Appellate Tribunal (ITAT) over repeated delays in pronouncing orders and breaching the 90-day outer limit under Rule 34 of the Income Tax (Appellate Tribunal) Rules, 1963 to pronounce decisions [Rajesh Hemrajani v. Income Tax Appellate Tribunal & Anr].

In an order passed on July 31, a division bench of acting Chief Justice Ravindra Ghuge and Justice Gautam Ankhad directed all benches of ITAT strictly adhere to the 90-day outer limit prescribed by Rule 34 of the Income Tax (Appellate Tribunal) Rules, 1963 to pronounce decisions.

The Court was was hearing a petition filed by a Mumbai-based litigant, one Rajesh R Hemrajani. 

Hemrajani claimed that his appeal had been fully argued thrice but remained undecided and was released twice by the judge after the statutory period for pronouncement expired. 

“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 (of ITAT Rules) mandates a decision within 90 days. How far would the litigants tolerate the rigours of litigation, when an Appeal is released on multiple occasions. In the present case, the Appeal has been finally argued on the 3rd occasion, and the time-line is to expire shortly. We have taken a serious note of this aspect,” the High Court recorded. 

The petition concerned an appeal heard first by a bench comprising judicial member Rahul Chaudhary and accountant member Vikram Singh Yadav. It was closed for judgment on July 1, 2025 but not decided within the deadline of 90 days. 

A reconstituted bench led by Justice CV Bhadang reserved the matter on November 26, 2025, yet again failed to deliver a judgment within 90 days, and released it on February 27, 2026.

The High Court bench recorded how Hemrajani was exasperated by the two hearings that yielded no result. It noted that his appeal is now reserved for judgment for the third time by another bench (judicial member Beena Pillai and accountant member Arun Khopdia) since May 13, 2026. The 90-day period is set to expire on August 13, 2026. 

Taking note of the same, the High Court directed the judgement in Hemrajani’s case to be delivered before August 13. 

It further ordered all income tax appellate tribunals to follow the ITAT rules by fixing a pronouncement date within 60 days of conclusion of hearing. Even in exceptional circumstances, judgments should be delivered by the 90th day, the Court underlined. 

The Prothonotary and Senior Master of the High Court has been asked to circulate the order to all ITAT benches for compliance.

Advocates Dhruv Janssen Sanghavi, Anirudh Srinivasan and Prajyot Sawardekar appeared for Hemrajani.

Advocate Subir Kumar and Ashita Aggarwal appeared for the Income Tax Officer.

[Read order]