Question ID : 44807

Notice under section 250 of the income tax act 1961

Received notice under section 250 of the income tax act, 1961 on 25-02-2025 in connection the appeal filed against the order under section 147 r.w.s.144 of the income tax act, 1961 passed by Assessing Officer vide DIN NO ITBA/COM/F/17/2019-20/1020814100(1) on 20-11-2019 for the assessment year 2012-13. Appeal files on 20-11-2019 As per section 250, CIT Appeal must issue the order within one year from the end of financial year in which the appeal file. and in special case within next one year. Hear is last date 31-03-2021 and in special case the last date is 31-03-2022. but here notice is being issued on 25-02-2025. PLESAE ADVISE AND PROVIDE CASE LAW FOR CHALLANGING THE NOTICE VALIDITY.

Answer ID : 85698

You have a strong ground to challenge the validity of the notice issued under Section 250 of the Income Tax Act, 1961, as it appears to be time-barred. Legal Grounds for Challenge: Time Limit for CIT(A) to Pass Order: As per Section 250(6A) of the Income Tax Act, the CIT(A) is required to dispose of the appeal within one year from the end of the financial year in which the appeal was filed. In exceptional cases, an additional one-year extension may be granted. Your appeal was filed on 20-11-2019, meaning: Normal time limit: 31-03-2021 Extended time limit (special cases): 31-03-2022 The notice dated 25-02-2025 is well beyond this timeline. Violation of Principles of Natural Justice: Issuing a notice after more than five years of delay can be challenged under delay and laches, violating the principle of timely disposal of appeals. Courts have held that delayed proceedings cause undue hardship and are contrary to natural justice. Case Laws to Support Your Challenge: CIT v. Shreeji Prints (2014) 225 Taxman 309 (Guj.) Held that substantial delay in issuing appellate orders violates principles of natural justice and can render the order invalid. Govindbhai Mamaiya v. CIT (2014) 367 ITR 498 (SC) The Supreme Court held that an unreasonable delay in issuing notices or completing proceedings is against the taxpayer’s rights. Mohammed Ayub v. ITO (2019) 415 ITR 314 (All.) If the appellate authority does not dispose of the appeal within the statutory timeline, it cannot be revived after years of inaction. State of Punjab v. Bhatinda District Co-op Milk Producers Union Ltd. (2007) 11 SCC 363 A reassessment order passed beyond a reasonable period, even without a statutory limit, was quashed. Actionable Steps: File a Writ Petition in the High Court under Article 226 of the Constitution challenging the validity of the notice. Cite the above case laws in your appeal before the CIT(A) or Tribunal, highlighting the excessive delay. Seek dismissal of the notice on the grounds that it is beyond the legally permissible period.

Answer ID : 85722

Its valid

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