Validity of Writ Petitions and Section 153C Proceedings: Examining the High Court Judgment

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..... e covering the two key issues in the case, with an analysis of the court's reasoning and findings: INTRODUCTION The Karnataka High Court recently delivered a significant judgment addressing two crucial issues: the validity of entertaining writ petitions [ 2022 (8) TMI 1233 - KARNATAKA HIGH COURT] despite alternative remedies and the validity of proceedings initiated u/s 153C of the Income Tax .....

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..... ore approaching the High Court under Article 226 of the Constitution. On the other hand, the assessees argued that the writ petitions were maintainable, citing exceptions recognized by the Supreme Court, such as cases involving violations of natural justice, lack of jurisdiction, or infringement of fundamental rights. Regarding the validity of Section 153C proceedings, the Revenue defended the ini .....

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..... hat the availability of an alternative remedy is not an absolute bar to entertaining a writ petition. It recognized well-established exceptions, such as cases involving violations of natural justice, lack of jurisdiction, or infringement of fundamental rights. Regarding the validity of Section 153C proceedings, the court examined the legal requirements, including the necessity of recording a satis .....

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..... able. Concerning the validity of Section 153C proceedings, the court held that the proceedings were vitiated due to the lack of a valid satisfaction note recorded by the Assessing Officer of the searched person. It also found issues with the time limits and jurisdictional aspects of the proceedings. Consequently, the High Court upheld the decision of the Single Judge, quashing the impugned notices .....

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..... ional aspects. The judgment also highlights the significance of evidentiary standards in tax proceedings, underscoring the need for corroborative evidence and the limited evidentiary value of loose sheets and retracted statements. Overall, this decision reinforces the principles of judicial review, statutory interpretation, and evidentiary standards in tax matters, providing guidance for future ca .....

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