2019 (5) TMI 1203 - HC - Income Tax

Writ against assessment order - availability of remedy of statutory appeal - withdrawal of appeal - violation of the principles of natural justice - HELD THAT - This Court is not inclined to admit the writ appeal, the learned senior counsel sought permission to withdraw the writ appeal subject to indulgence of this Court to direct the appellate authority to consider all the grounds which will be raised against the assessment, including the ground with respect to the alleged violations of principles of natural justice, and to direct the appellate authority to take a decision untrammeled by any of the observations contained in the impugned judgment of the learned Single Judge. Permission is granted. The writ appeal is hereby dismissed as withdrawn. It is made clear that, if the appellant approaches the statutory appellate authority in a properly constituted appeal, the said authority shall consider all the challenges raised before it, including challenge based on the ground of violation of the principles of natural justice in finalising the assessment.

Summary

Issues:
Challenge to assessment orders without resorting to statutory appeal under the Income Tax Act, 1961, violation of principles of natural justice in finalizing assessment, permission to withdraw writ appeal with directions to appellate authority.

Analysis:
The judgment involved the challenge of assessment orders (Exts.P1 to P3) without utilizing the statutory appeal provided under the Income Tax Act, 1961. The writ petition was dismissed for not availing the alternate remedy of statutory appeal and absence of violation of natural justice principles in the assessment process. However, the appellant was allowed to approach the appellate authority despite the dismissal of the writ petition. The learned senior Counsel for the appellant argued for admission, but upon the court's inclination against admitting the writ appeal, permission was sought to withdraw it, subject to directing the appellate authority to consider all grounds raised against the assessment, including alleged violations of natural justice principles.

The court granted permission for withdrawal of the writ appeal, dismissing it accordingly. It was emphasized that if the appellant pursues the statutory appellate authority in a properly constituted appeal, all challenges, including those related to natural justice violations, must be considered by the authority independently of the observations in the impugned judgment. Additionally, the appellate authority was directed to account for the time spent by the petitioner in pursuing the writ petition and appeal when evaluating the limitation period for filing the appeal.

In conclusion, the judgment highlighted the importance of exhausting statutory remedies before resorting to writ petitions, while also ensuring that the appellate authority considers all grounds raised by the appellant, including those related to alleged violations of natural justice, without being influenced by the previous judgment's observations.