2019 (4) TMI 59 - HC - Income Tax

Reopening of assessment u/s 147 - quashing of the assessment order - disputed questions of fact raised in the writ petition - availability of alternative statutory remedy - HELD THAT - Keeping in view the availability of alternative remedy of appeal against the impugned order and the law laid down by the Apex Court in COMMISSIONER OF INCOME TAX & OTHERS VERSUS CHHABIL DASS AGARWAL 2013 (8) TMI 458 - SUPREME COURT on the issue, we do not find any ground to interfere in exercise of writ jurisdiction under Articles 226/227 of the Constitution of India - Writ dismissed

Summary

Issues:
Challenge to assessment order under Section 147 of the Income Tax Act, 1961; Availability of alternative efficacious remedy of appeal against the impugned order.

Analysis:
The petitioner sought the quashing of an assessment order dated 30.12.2018 under Section 147 of the Income Tax Act, 1961. The High Court noted that disputed questions of fact were raised in the writ petition and that the petitioner had an alternative efficacious remedy of appeal against the order. The Court referred to the principle that non-entertainment of writ petitions when an alternative remedy is available is a rule of self-imposed limitation. It emphasized that the High Court should not interfere if an adequate alternative remedy exists unless exceptional circumstances warrant such intervention. The Court cited various cases to support this principle, highlighting that the High Court's jurisdiction under Article 226 is discretionary and must be exercised judiciously.

The Court further discussed the discretionary nature of writ jurisdiction, emphasizing that the High Court can refuse to entertain a petition if an adequate remedy is available elsewhere. It noted that the Constitution confers wide powers on the High Court to issue writs but highlighted the importance of exhausting statutory remedies before resorting to writ jurisdiction. The Court referenced several cases to illustrate the principle that when a statutory forum is created for redressal of grievances, a writ petition should not be entertained bypassing the statutory mechanism. It stressed that the statutory remedy must be effective and not merely a formality.

In considering the petitioner's request to quash the assessment order, the Court referred to a previous case where it outlined the circumstances under which a writ petition can be entertained without insisting on adopting statutory remedies. These circumstances included seeking enforcement of fundamental rights, failure of principles of natural justice, or challenging the jurisdiction or vires of an Act. However, in the present case, the Court found no grounds to interfere in the exercise of writ jurisdiction under Articles 226/227. Consequently, the Court disposed of the writ petition, directing the petitioner to pursue the statutory remedy of appeal in accordance with the law.

In conclusion, the High Court upheld the principle that the availability of an alternative efficacious remedy of appeal against an impugned order precludes the need for the Court to entertain a writ petition under Articles 226/227. The Court's decision was based on established legal principles and precedents emphasizing the importance of exhausting statutory remedies before seeking judicial intervention through writ jurisdiction.