Full Judgment Text
$~2
* IN THE HIGH COURT OF DELHI AT NEW DELHI
% Date of Decision : 24.02.2026
+ W.P.(C) 2342/2026, CM APPL. 11291-11292/2026 & CM APPL.
12599/2026
LEGAL INITIATIVE FOR FOREST AND ENVIRONMENT
TRUST (LIFE TRUST) .....Petitioner
Through: Mr. Chander Uday Singh, Sr. Adv.
Mr. Abishek Jebaraj, Ms. A. Reyana
Shruti and Ms.Katayani, Advs.
versus
PCIT CENTRAL 2 DELHI AND ANR. .....Respondents
Through: Mr. Zoheb Hossain, SPL. Counsel,
Mr. Vipul Agrawal, SSC, Mr. Sanjeev
Menon, Ms. Sakshi Sairwal and Mr.
Akshat Singh, JSCs and Ms. Harshita
Kotru and Mr. Gaoraang Ranjan,
Advs.
CORAM:
HON'BLE MR. JUSTICE DINESH MEHTA
HON'BLE MR. JUSTICE VINOD KUMAR
JUDGMENT
DINESH MEHTA, J. (ORAL)
1. A writ petition with 144 pages, including copies of the previous writ
petition and various other documents, has been filed for a small rather
innocuous relief, that the Tribunal be directed to expeditiously decide
petitioner’s appeal.
2. Thereafter, the petitioner placed additional documents on record
running into 316 pages; the respondents have also filed several documents
running into 257 pages, to oppose the relief sought by the petitioner.
3. While deprecating the practice of the counsel from both the sides of
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Signed By:PRAMOD
KUMAR VATS
Signing Date:27.02.2026
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unnecessarily burdening the dockets, which consume substantial time of the
Court so also the energy, in a case where the grievances which has been
canvassed by the petitioner invoking Article 226 of the Constitution of
India. We are constrained to observe that a trivial issue which has been
expended out of proportion.
4. The core issue or grievance is; that the Income Tax Appellate
Tribunal ( hereinafter referred to as ‘the Tribunal’ ) had heard the appeal of
the petitioner Trust and reserved the order on 03.09.2025, however, on
19.01.2026, the Tribunal adjourned the matter sine-die observing that
against the identical appeal, which was decided by the Tribunal in the case
of Principal Commissioner of Income Tax Central 3 New Delhi v. M/s
Lakhmi Chand Charitable Society (annexure P-6 of the petition) and in
the case of
M/s Lakhmi Chand Charitable Society v. Principal
, has been subject to an
Commissioner of Income Tax Central 3 New Delhi
appeal being ITA No. 30/2025 under Section 260 of the of the Income Tax
Act, 1961 and substantial questions of law have been framed therein.
5. Learned counsel for the petitioner informed that the Tribunal had
allowed additional jurisdictional issues to be raised by the petitioner trust
and thereafter, the matter was heard extensively on 03.09.2025 and the order
was reserved. He added that in the meantime, on 12.11.2025 another Bench
of the Tribunal (in which the judicial member who heard petitioner’s appeal
was also a member) allowed the appeal filed by another assessee namely,
Ram Charan Das Kishori Lal Charitable Trust and surprisingly, when it
came to petitioner’s appeal, they have posted the matter again for
consideration/clarification on 19.01.2026 and adjourned the matter sine-die,
simply because in ITA No.30/2025, on 04.12.2025 this Court had framed the
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Signed By:PRAMOD
KUMAR VATS
Signing Date:27.02.2026
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following questions, while admitting said appeal:-
“(i) Whether on facts and circumstances of the case and in law,
Hon’ble ITAT was right in quashing the order passed by PCIT
(Central)-3 u/s 112A r.w.s. 12AA & 12AB(4) cancelling the
registration of assessee trust by holding that the PCIT (Central)
did not have jurisdiction to pass the aforesaid order which vested
solely with PCIT (Exemptions)?
(ii) Whether on facts and circumstances of the case and in law,
the PCIT(Central) would have the powers to pass an order
cancelling registration, since the jurisdiction of the assessing
officers has been transferred under Section 127 of the Act?
(iii) Whether on facts and circumstances of the case and in law,
the PCIT(Central) had the power to cancel registration
retrospectively w.e.f. AY 2015-16 under Section 12AB(4) despite
the said provisions coming into effect from 01.04.2022?”
6. Learned counsel argued that maybe, the appeal has been admitted
against the order passed by the Tribunal in Lakhmi Chand Charitable
Society’s case, but since no interim order was granted, it was incumbent
upon the Tribunal to have decided the appeal on merits.”
7. He argued that one fails to comprehend that when another Bench of
the Tribunal has been pleased to allow the similar appeal on 12.11.2025,
why the Bench in question has taken a different view and adjourned the
appellant’s appeal sine-die?
8. Learned counsel argued that in the present case, when the petitioner’s
stay application stood turned down by the Tribunal, adjourning the matter
sine-die , serious adverse consequences upon the rights of the petitioner-
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KUMAR VATS
Signing Date:27.02.2026
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Trust have ensued. He prayed that the direction be issued to the Tribunal to
decide the appeal within a month and recovery be stayed.
9. In order to substantiate his arguments, learned counsel relied upon
provisions contained in Rule 34(5)(c) of Income Tax Appellate Tribunal
Rules, 1963 and argued that the Tribunal is supposed to deliver a judgment
within sixty days of the appeal being heard, which period can be further
extended by thirty days.
10. Mr. Zoheb Hossain, learned Special Counsel for the Department on
the other hand, argued that the period prescribed under Rule 34(5)(c) of
Income Tax Appellate Tribunal Rules, 1963 is directory and not mandatory,
as has been held by this Court in various judgment.
11. He also argued that though it may be true that in another case, namely
Ram Saran (supra), the Tribunal has allowed the appeal but if the facts are
into consideration, it can be seen that said appeal was allowed on
12.11.2025, whereas this Court has admitted the appeal and framed question
of law only on 04.12.2025.
12. Mr. Zoheb Hossain tried to touch upon the merits of the case and
expressed a concern that the petitioner has approached this Court time and
again.
13. Heard learned counsel for the parties.
14. The short issue and grievance for which, the petitioner has
approached this Court is, whether the Tribunal, having reserved the order on
03.09.2025 and adjourned the appeal sine-die simply because ITA
No.30/2025 has been admitted and framed questions of law was legally
justified in doing so.
15. On perusal of order dated 04.12.2025, we find that the effect and
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KUMAR VATS
Signing Date:27.02.2026
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operation of the order of the Tribunal has not been stayed. Hence, we are of
the view that simply because appeal has been admitted, the Tribunal ought
not to have adjourned the matter sine-die, more so, when the stay petition
had been rejected or if it so chose, it should have protected the interest of the
assessee.
16. Such approach of the Tribunal has led to the grievance of the
petitioner-Trust also being aggravated. It has led to sheer wastage of the
time and energy of the Tribunal and the assessee and its counsel who have
argued the matter at length. We are, therefore, persuaded to set aside the
order dated 19.01.2026, passed by the Tribunal to the extent it has adjourned
the case ‘ sine die’.
17. Petition is, thus, allowed.
18. The Tribunal is directed to decide the appeal in accordance with law.
19. We make it clear that we have not made any observations or recorded
any finding about the merit of the case, which shall obviously be considered
by the Tribunal, while deciding appeal (No. 3241/Del/2023).
20. The appeal shall be decided within the period of two months from the
next date, which we hereby fixed as 10.03.2026, on which date, both the
parties shall appear before the Tribunal.
21. The petitioner-Trust shall however place a copy of this order before
the Registrar of the Tribunal, who shall arrange to list the matter on
10.03.2026.
DINESH MEHTA, J
VINOD KUMAR, J
FEBRUARY 24, 2026/ cd
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Signed By:PRAMOD
KUMAR VATS
Signing Date:27.02.2026
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