2025 (1) TMI 40 - HC - Income Tax

Maintainability of writ petition against order of Assessment in violation of the principles of natural justice - invoking extraordinary writ jurisdiction vested in this under Article 226 of the Constitution of India - availability of alternative remedy - HELD THAT - In the instant case, it is the case of the petitioner that the impugned order of Assessment is in violation of the principles of natural justice. We have enquired into this aspect of the matter and as noted above, the notices had been duly served upon Sh. Sahil Mahajan, the legal heir of Late Sneh Gupta, who was well represented before the Assessing Authority. The instant case does not fall under any of the exceptions enumerated hereinabove. The order impugned is passed by the Assessing Authority having jurisdiction in the matter and that there is no apparent violation of the principles of natural justice. Needless to say that no provision of Income Tax Act is under challenge in this petition. We are not inclined to entertain this petition and instead relegate the petitioner to the remedy of appeal before the Appellate Authority, in case, he wishes to challenge the impugned order of assessment. The petition is, therefore, dismissed with liberty to the petitioner to avail the remedy of appeal provided under the Income Tax Act.

1. ISSUES PRESENTED and CONSIDERED

The core legal questions considered in this judgment are:

Whether the impugned order of assessment was issued in violation of the principles of natural justice.
Whether the petitioner can bypass the statutory remedy of appeal and approach the High Court directly under Article 226 of the Constitution of India.

2. ISSUE-WISE DETAILED ANALYSIS

Issue 1: Violation of the Principles of Natural Justice

Relevant Legal Framework and Precedents: The principles of natural justice require that a party be given a fair opportunity to present their case. Under the Income Tax Act, notices must be served to the concerned parties to ensure compliance with these principles.
Court's Interpretation and Reasoning: The court noted that the notices were duly served upon the legal heir of the deceased assessee, Late Sneh Gupta. The legal heir, Sahil Mahajan, was well represented before the Assessing Authority.
Key Evidence and Findings: The court relied on the official records indicating that all necessary notices were issued to Sahil Mahajan, the legal heir, thereby ensuring compliance with the principles of natural justice.
Application of Law to Facts: The court applied the principles of natural justice to the facts and found that the petitioner was duly notified and represented, negating any claim of procedural unfairness.
Treatment of Competing Arguments: The petitioner argued that there was a violation of natural justice, but the court found no evidence supporting this claim, given the proper service of notices.
Conclusions: The court concluded that there was no violation of the principles of natural justice in the issuance of the assessment order.

Issue 2: Availability of Alternative Remedy

Relevant Legal Framework and Precedents: Article 226 of the Constitution allows for the writ jurisdiction of High Courts, but it is generally not exercised when an alternative statutory remedy is available, unless there are exceptional circumstances.
Court's Interpretation and Reasoning: The court emphasized that the availability of an alternative remedy is not an absolute bar to invoking Article 226, but it should be considered unless the order is passed by an incompetent authority or violates natural justice.
Key Evidence and Findings: The court found that the petitioner had not exhausted the statutory remedies available under the Income Tax Act, such as appealing to the Commissioner of Income Tax (Appeals).
Application of Law to Facts: The court applied the doctrine of alternative remedies, concluding that the petitioner should first seek redress through the statutory appeal process.
Treatment of Competing Arguments: The petitioner sought to invoke the court's writ jurisdiction, but the court found no exceptional circumstances justifying bypassing the statutory appeal process.
Conclusions: The court concluded that the petitioner should pursue the appeal process provided under the Income Tax Act before approaching the High Court.

3. SIGNIFICANT HOLDINGS

Verbatim Quotes of Crucial Legal Reasoning: "The order impugned is passed by the Assessing Authority having jurisdiction in the matter and that there is no apparent violation of the principles of natural justice."
Core Principles Established: The court reaffirmed the principle that statutory remedies should be exhausted before invoking the extraordinary writ jurisdiction of the High Court, barring exceptional circumstances.
Final Determinations on Each Issue: The court determined that there was no violation of natural justice and that the petitioner should seek remedy through the statutory appeal process. The petition was dismissed with liberty to the petitioner to file an appeal, and the time spent in court would not count towards the limitation period for filing the appeal.

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