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Issues:
1. Ex parte assessment under section 144 of the Income-tax Act, 1961. 2. Application under section 146 for setting aside the ex parte assessment order. 3. Appeals before the Appellate Assistant Commissioner and the Income-tax Appellate Tribunal. 4. Rejection of application for setting aside the ex parte order by the Tribunal. 5. Filing of a writ petition under article 226 of the Constitution challenging the assessment order. 6. Grounds limited to agricultural development allowance and loss allocation under rule 8 of the Income-tax Rules, 1962. 7. Dismissal of the application by the first court. 8. Appeal before the High Court challenging the impugned orders. 9. Legal arguments based on errors in the assessment order and appellate orders. 10. Citation of relevant legal precedents to support contentions. Analysis: The case involves the appellant, a tea company, filing its return under the Income-tax Act for the assessment year 1971-72, with subsequent notices served by the Income-tax Officer. The appellant failed to appear at the hearing, leading to an ex parte assessment under section 144, disallowing part of the claimed revenue deficit and assessing business loss. The appellant's application under section 146 to set aside the ex parte order was rejected, prompting appeals before the Appellate Assistant Commissioner and the Income-tax Appellate Tribunal, which were also dismissed. The Tribunal, after denying adjournment requests, decided the appeals ex parte, leading to a further application for setting aside the order, which was rejected. The appellant then moved the High Court under article 226 of the Constitution, challenging the assessment order on grounds related to agricultural development allowance and loss allocation under rule 8 of the Income-tax Rules, 1962. The first court dismissed the application, stating that the Revenue authorities had not misapplied the rules and had acted within their jurisdiction. The High Court, upon hearing legal arguments, cited relevant legal precedents emphasizing errors in the assessment order and the Revenue authorities' misinterpretation of the statute. The High Court held that the appellant's failure to raise certain issues before the lower authorities precluded them from challenging those issues in the writ petition. The court found that the Tribunal had not exceeded its jurisdiction by refusing to consider the unraised contentions. While not delving into the application of rule 8 in cases of loss, the court emphasized that the appellant had alternative remedies under the Income-tax Act, such as a reference, which were not pursued. Therefore, the appeal was dismissed, highlighting the appellant's failure to avail themselves of proper remedies and limited jurisdiction under article 226 of the Constitution. In conclusion, the High Court upheld the lower court's decision, emphasizing the importance of exhausting statutory remedies and not raising new contentions in writ petitions. The court clarified that the appellant's failure to utilize available avenues precluded them from challenging certain issues in the constitutional writ jurisdiction, leading to the dismissal of the appeal without costs.
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