The Bombay High Court has expressed serious concern over repeated delays by the Income Tax Appellate Tribunal (ITAT) in delivering reserved judgments, observing that litigants cannot be forced to repeatedly argue the same case because orders are not pronounced within the time prescribed by law. While partly allowing a petition filed by taxpayer Rajesh R. Hemrajani, the Court directed the ITAT to pronounce the pending judgment in his appeal on or before August 13, 2026, and instructed all ITAT benches across the country to strictly follow Rule 34 of the Income Tax (Appellate Tribunal) Rules, 1963.
Background of the Case
The petition was filed by Rajesh R. Hemrajani after his tax appeal remained undecided despite being argued before different benches of the ITAT on multiple occasions. According to the records placed before the High Court, the appeal was first heard and reserved for judgment on July 1, 2025. However, no decision was delivered within the time prescribed under Rule 34, following which the matter was released on October 7, 2025.
The case was then listed before a newly constituted bench and again reserved for judgment on November 26, 2025. Yet, no judgment was delivered within the permissible period, leading to the appeal being released once more on February 27, 2026.
By the time the matter reached its third hearing before another ITAT bench, it had already been argued twice without any final decision. The appeal was reserved again on May 13, 2026, prompting the petitioner to approach the High Court with the apprehension that the matter could once again be released if the statutory timeline was not followed.
Court's Observations
A Division Bench comprising Acting Chief Justice Ravindra V. Ghuge and Justice Gautam A. Ankhad examined Rule 34 of the Income Tax (Appellate Tribunal) Rules, 1963, which governs the pronouncement of tribunal orders. The rule requires that where no date is fixed at the conclusion of the hearing, every effort should be made to pronounce the judgment within 60 days. In exceptional and extraordinary circumstances, the period may extend, but ordinarily not beyond 90 days.
Expressing its concern over the repeated releases of the appeal without any judgment, the Bench remarked:
“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.”
The judges further questioned how long litigants could be expected to endure repeated rounds of litigation merely because judgments were not delivered within the prescribed period. The Court noted that in the present case, the appeal had already been fully argued three times, and the statutory timeline for the third hearing was nearing expiry.
Court's Directions
Taking serious note of the issue, the High Court issued case-specific as well as general directions.
The Court directed the ITAT to ensure that judgment in Rajesh Hemrajani's pending appeal is delivered on or before August 13, 2026. It also ordered both the petitioner and the Income Tax Department to place a copy of the High Court's order before the Tribunal.
In addition, the Bench directed every Income Tax Appellate Tribunal to strictly comply with Rule 34 by specifying the date of pronouncement when matters are reserved for judgment. It clarified that judgments should ordinarily be delivered within 60 days and, where exceptional circumstances exist, in any event before the expiry of 90 days.
Decision
The Bombay High Court partly allowed the writ petition and directed the Income Tax Appellate Tribunal to pronounce the petitioner's pending judgment by August 13, 2026.
The Court further ordered that its directions be circulated to all ITAT benches to ensure uniform compliance with Rule 34 governing the timely pronouncement of judgments.
Case Details
Case Title: Rajesh R. Hemrajani v. Income Tax Appellate Tribunal & Anr.
Case Number: Writ Petition (L) No. 10271 of 2026
Judge: Acting Chief Justice Ravindra V. Ghuge and Justice Gautam A. Ankhad
Decision Date: 31 July 2026
