The Delhi High Court has nullified seven rulings made by the Income Tax Appellate Tribunal (ITAT) concerning Patanjali Ayurved Limited. The court criticized the ITAT for its handling of the cases, describing the proceedings as a troubling example of procedural errors and a significant lack of transparency.
Court Criticizes ITAT for Procedural Lapses in Handling Appeals
The Income Tax Appellate Tribunal (ITAT) faced sharp criticism from the court for its handling of seven appeals, which were resolved in a brief order of fewer than seven paragraphs. The court noted that the ITAT did not adequately address the arguments presented by the assessee or thoroughly examine the issues at hand.
The judgment highlighted that the tribunal members showed “undue haste” and acted with a degree of “recklessness” in finalizing the order. The court also pointed out that the tribunal staff failed to identify and correct errors before the order was signed, emphasizing that such negligence is unacceptable from a top appellate authority.
The court described the situation as a troubling display of procedural shortcomings within the ITAT, stating, “These appeals portray a rather shocking picture of the procedural lapses and opaqueness in which the Tribunal… has been passing the orders in a zeal rather over-anxiety of disposing the cases.”
Additionally, the court flagged discrepancies in the hearing and pronouncement dates of the appeals. Four appeals were noted as heard and pronounced on August 6, 2025, while three revenue appeals were recorded as having been dealt with on August 13, 2025.
This ruling came as the court reviewed appeals filed by the Income Tax Commissioner against ITAT’s orders that quashed assessment proceedings against Patanjali and allowed its appeals.
