ITAT lawyers' body flags high case pendency in Delhi benches, urges action

Business Standard

05-05-2025

The Delhi branch of the Income Tax Appellate Tribunal (ITAT) Bar Association has raised serious concerns over an increasing backlog of cases at the tribunal's Delhi benches, in a letter to the ITAT president, highlighting a deteriorating judicial environment marked by frequent adjournments.
'There is an unprecedented increase in instances where even the binding judgments of the Delhi High Court are not being followed, leading to dissent among members resulting in prolonged pendency of matters for months,' the association said in an April 25 communiqué to the president of the ITAT, reviewed by Business Standard. Delhi has the 'highest pendency' of cases among ITAT Benches, the association claimed.
'It is pertinent to note that Delhi Benches of the tribunal have the highest pendency and many of these matters involve complex legal issues and significant revenue stakes. It is therefore of utmost importance that members with experience, balanced disposition and judicial temperament be posted here, so that the ends of justice are met in a fair, equitable and unbiased manner,' the letter said.
An email sent to the Central Board of Direct Taxes (CBDT) and the Law Ministry, seeking a response on the letter and the rising pendency of cases, remained unanswered till the time of press.
According to a written response by Finance Minister Nirmala Sitharaman in the Rajya Sabha on March 18, IT appellate tribunals have a pendency of 23,175 direct tax cases entailing Rs. 6.7 trillion in dispute. There are a total of 63 ITAT Benches across India of which nine are present in the National Capital.
The letter also flags concerns over the quality of orders being passed, stating that proceedings in several matters are conducted in a casual manner, falling short of the traditionally high standards of the tribunal.
'Despite having raised these concerns informally on multiple occasions, no effective resolution appears to have emerged. Consequently, if no perceptible solution is found, the Bar would be constrained to lodge a symbolic protest by wearing black bands, which could eventually lead to boycott of Benches,' the Bar warned in the letter.
The association, in the letter, urged the ITAT president to review objective data — such as disposal rates, dissent trends, and time taken to pass orders — as evidence of the pressing issues before the Delhi Benches.
The Bar association also flagged 'an element of bias is palpably discernible' in some cases, causing repeated delays, and questioned a recent appointment.
'We also wish to state that a member who has had serious differences with every Bar association at prior postings has now been posted to Delhi — despite belonging to Delhi — in direct contravention of the binding decision of the Supreme Court in the case of Ajay Gandhi vs. B. Singh, 265 ITR 451, which clearly laid down that members should not be posted to where they have practiced or have personal connections,' the letter stated.