PANKAJ NATWARLAL PATEL vs. ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL CIRCLE 1(4), AHMEDABAD

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SCA/373/2022HC GujaratGJHC24001952202210 January 2022Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MS. JUSTICE NISHA M. THAKORE2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the assessment order, being an appealable order, necessitates the filing of an appropriate appeal in accordance with the law before the Commissioner of Appeals, as provided under Section 251 of the Income Tax Act. The Court was not convinced by the assessee's argument that the writ jurisdiction should be invoked due to a lack of opportunity for hearing. Therefore, the writ application was rejected on the grounds that an alternative statutory remedy was available. No decision was made on the merits of the assessment proceedings or the validity of the Section 153C assessment.

What were the facts?

The assessee, Pankaj Natwarlal Patel, filed a writ application under Article 226 of the Constitution of India before the High Court of Gujarat. The application sought to quash and set aside a notice dated December 25, 2021, and an assessment order dated December 30, 2021, issued by the Assistant Commissioner of Income Tax, Central Circle 1(4), Ahmedabad, for Assessment Year 2011-12. The assessee also sought to set aside an order dated December 30, 2021, rejecting objections and upholding the validity of assessment proceedings under Section 153C of the Income Tax Act. The primary grievance was the alleged lack of an appropriate opportunity of hearing before the assessment order was passed.

What were the issues?

1. Whether the writ applicant has an alternative statutory remedy against the assessment order for AY 2011-12, and if so, whether the writ jurisdiction under Article 226 of the Constitution of India is appropriate. (Question of law) The assessee contended that they were not afforded an appropriate opportunity of hearing before the passing of the assessment order under Section 153C of the Act. The revenue, through the Assistant Commissioner of Income Tax, issued the impugned notice and assessment order. The High Court inquired about the maintainability of the writ petition, given the availability of a statutory appeal under Section 251 of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 153C,Section 251

AI-generated summary — verify with the full judgment below

C/SCA/373/2022 ORDER DATED: 10/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/SPECIAL CIVIL APPLICATION NO. 373 of 2022 ============================================= PANKAJ NATWARLAL PATEL Versus ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL CIRCLE 1(4), AHMEDABAD ============================================= Appearance: MR VIVEKKUMAR CHAVDA(6666) for the Petitioner(s) No. 1 for the Respondent(s) No. 1 ============================================= CORAM: HONOURABLE MR. JUSTICE J.B.PARDIWALA and HONOURABLE MS. JUSTICE NISHA M. THAKORE

Date : 10/01/2022 ORAL ORDER (PER : HONOURABLE MR. JUSTICE J.B.PARDIWALA) 1. By this writ application under Article 226 of the Constitution of India, the writ applicant – an assessee has prayed for the following reliefs: “(h) to issue a writ of certiorari or in the nature of certiorari or any other appropriate writ, orders or directions quashing and setting aside the impugned notice dated 25.12.2021 [Annexure – A] as well as the assessment order dated 30.12.2021 [Annexure – H] issued by the Respondent for A.Y.2011-12 as well as the order of assessment passed in consequence to the impugned proceedings. (i) to issue a writ of certiorari or in the nature of certiorari or any other appropriate writ, orders or directions quashing and setting aside the impugned order passed by the Respondent on 30.12.2021 [Annexure- H] rejecting the objections of the Petitioner and upholding the validity of the impugned assessment proceedings u/s 153C of the Act for A.Y. 2011-12. (j) To allow the Petitioner to amend the Petition in view of the order passed, if any, by the Respondent disposing off the objections. (k) To call for the records of the proceedings, look into them and be pleased to issue a writ of certiorari or any other appropriate writ, order or direction quashing the impugned notice and order. Page 1 of 2

C/SCA/373/2022 ORDER DATED: 10/01/2022 (l) Pending the hearing and final disposal of this petition to maintain status quo in the matter and ask the Respondent and its subordinates not to take any action or to do anything in furtherance and pursuance of this impugned assessment order. (m) To allow this Petition with cost. (n) To pass any further or other orders as the Hon'ble Court may deem proper in the interest of justice and in the circumstances of the case.” 2. We have heard Mr. Vivekkumar Chavda, the learned counsel appearing for the writ applicant. 3. We inquired with Mr. Chavda as to why his client is invoking the writ jurisdiction of this High Court under Article 226 of the Constitution of India when the remedy to challenge the assessment order lies in filing the statutory appeal under Section 251 of the Income Tax Act before the Commissioner of Appeals. The only reply given by Mr. Chavda is that his client was not afforded appropriate opportunity of hearing before the passing of the assessment order on conclusion of the assessment proceedings under Section 153C of the Act for the A.Y. 2011-12. We are not convinced with the reply of Mr. Chavda. 4. We are of the view that the assessment order being an appealable order, the writ applicant should file an appropriate appeal in accordance with law. 5. With the aforesaid, this writ application stands rejected. (J. B. PARDIWALA, J) (NISHA M. THAKORE,J) NEHA Page 2 of 2

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