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Challenge to the order passed under section 132(5) of the Income-tax Act, 1961 on grounds of lack of jurisdiction, violation of natural justice, and non-compliance with procedural requirements. Interplay between the availability of alternative remedies under section 132(11) and the right to file a writ petition. Validity of the order under section 132(5) in light of various judicial precedents and legal provisions. Analysis: The appellant contended that the order passed under section 132(5) was flawed as it was issued without providing a reasonable opportunity and was based on incomplete information. Reference was made to the Gujarat High Court judgment emphasizing the importance of compliance with procedural requirements, specifically regarding the notice to show cause. Additionally, reliance was placed on other cases highlighting the significance of fair play and natural justice in such proceedings. The appellant further argued that the Income-tax Officer exceeded jurisdiction by considering items not seized and by delaying the order beyond the prescribed timeline. Legal precedents, such as the Karnataka High Court judgment, were cited to support the argument that a valid seizure is a prerequisite for exercising powers under section 132(5) and any deviation renders the order liable to be quashed. The court examined the provisions of section 132(11) and emphasized that the availability of an alternative remedy does not bar the filing of a writ petition. Citing the Supreme Court and various High Court judgments, it was established that the writ jurisdiction can be invoked if the authority's actions are beyond its powers or violate fundamental rights, even if alternative remedies exist. Moreover, the court discussed the discretionary nature of rule 112A of the Income-tax Rules, 1962, and clarified that not every provision in a taxing statute is mandatory. The judgment highlighted that the Commissioner has the authority to review the validity of proceedings and consider objections raised by the assessee, ensuring a fair examination of facts and applicable laws. In the present case, the court noted that the appellant had opportunities to explain the seized assets but failed to provide satisfactory explanations, leading to the order under section 132(5). The court emphasized that objections raised by the petitioner could be addressed under section 132(11) by the Commissioner, indicating that the order under section 132(5) is not conclusive and can be challenged during regular assessment proceedings. Ultimately, the court dismissed the special appeal, affirming the availability of alternative remedies and the need for factual disputes to be resolved through the prescribed legal procedures. The appellant was granted a timeframe to file objections, emphasizing the importance of adhering to the statutory limitations.
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