DINESH CHHAGANLAL THAKKAR vs. PRINCIPAL COMMISSIONER OF INCOME-TAX

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SCA/7820/2021HC GujaratGJHC24027699202118 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 declined to exercise its extraordinary jurisdiction under Article 226 of the Constitution of India. The primary reason for this decision was that the order passed by the Principal Commissioner of Income Tax under Section 263 of the Income Tax Act, 1961, is an appealable order before the Income Tax Appellate Tribunal. The Court found this to be a sufficient ground to dismiss the writ application. The Court disposed of the writ application on this short point, reserving the liberty for the writ applicant to file an appeal before the Income Tax Appellate Tribunal. The Court also noted that if an appeal is filed, any delay caused by filing the writ petition first should be condoned. All questions of law were left open for both sides to raise before the Appellate Tribunal.

What were the facts?

The assessee, Dinesh Chhaganlal Thakkar, filed a Special Civil Application challenging an order dated March 16, 2021, passed by the Principal Commissioner of Income Tax, Ahmedabad. This order was passed under Section 263 of the Income Tax Act, 1961, and directed the Assessing Officer to pass a fresh assessment order for Assessment Year 2015-16. The High Court of Gujarat at Ahmedabad heard the matter. The assessee was represented by Mr. Chintan Dave of HLP Associates LLP, and the Revenue was represented by Mr. M.R. Bhatt, Senior Counsel.

What were the issues?

1. Whether the High Court should exercise its extraordinary writ jurisdiction under Article 226 of the Constitution of India to entertain a challenge to an order passed by the Principal Commissioner of Income Tax under Section 263 of the Income Tax Act, 1961, when such an order is appealable before the Income Tax Appellate Tribunal? Assessee's Contention: The assessee filed the writ petition challenging the order passed under Section 263. Revenue's Contention: The order passed by the Principal Commissioner under Section 263 is an appealable order before the Income Tax Appellate Tribunal, and therefore, the High Court should not entertain the writ petition.

Which sections of the Income-tax Act were involved?

Section 263

AI-generated summary — verify with the full judgment below

C/SCA/7820/2021 ORDER DATED: 18/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/SPECIAL CIVIL APPLICATION NO. 7820 of 2021 ========================================================== DINESH CHHAGANLAL THAKKAR Versus PRINCIPAL COMMISSIONER OF INCOME-TAX ========================================================== Appearance: MR CHINTAN DAVE FOR HLP ASSOCIATES LLP(9263) for the Petitioner(s) No. 1 MR MR BHATT FOR M R BHATT & CO.(5953) for the Respondent(s) No. 1,2,3 ========================================================== CORAM: HONOURABLE MR. JUSTICE J.B.PARDIWALA and HONOURABLE MS. JUSTICE NISHA M. THAKORE

Date : 18/01/2022

ORAL ORDER (PER : HONOURABLE MR. JUSTICE J.B.PARDIWALA) 1. We have heard Mr. Chintan Dave, the learned counsel for HLP Associates appearing for the writ applicant – assessee and Mr. M.R. Bhatt, the learned senior counsel appearing for the Revenue. 2. The subject matter of challenge in the present writ application is the order passed by the Principal Commissioner of Income Tax, Ahmedabad, dated 16.03.2021 under Section 263 of the Income Tax Act, 1961. The Principal Commissioner of Income Tax by way of his impugned order has directed the Assessing Officer to pass a fresh assessment order with respect to the A.Y. 2015-16. The impugned order passed by the Principal Commissioner in exercise of his powers under Section 263 of the Act is an appealable order before the Income Tax Appellate Tribunal. In such circumstances, only on this ground alone, we decline to exercise our extraordinary jurisdiction under Article 226 Page 1 of 2

C/SCA/7820/2021 ORDER DATED: 18/01/2022 of the Constitution of India. 3. We dispose of this writ application on the aforesaid short point reserving the liberty for the writ applicant to file an appeal before the Income Tax Appellate Tribunal. If any such appeal is filed, the delay that has been caused may be condoned having regard to the fact that the writ applicant thought fit to challenge the order first by way of the present writ application. 4. We leave all the questions of law open for both the sides to be raised before Appellate Tribunal. Notice is discharged. (J. B. PARDIWALA, J) (NISHA M. THAKORE,J) Y.N. VYAS Page 2 of 2

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