Madhuri Sahai Vs DCIT (Rajasthan High Court)
In a significant ruling, the Rajasthan High Court in the case of Madhuri Sahai Vs DCIT reiterated the importance of exhausting statutory remedies before invoking the writ jurisdiction of the High Court. The petitioner, Madhuri Sahai, challenged the assessment order dated 21.03.2024 on the grounds that the initiation of proceedings under Section 153C of the Income Tax Act, 1961, was invalid. However, the court dismissed the writ petition, emphasizing that the petitioner had participated in the assessment proceedings without initially challenging the notice, thereby forfeiting her right to seek relief under Article 226 of the Constitution.
Background
The crux of the dispute lies in the application of Section 153C of the Income Tax Act, which deals with assessment in cases where assets belonging to a third party are seized during a search operation. The section was amended and subsequently repealed with effect from 01.04.2021, but the proceedings against the petitioner were initiated under its provisions prior to this date. The petitioner argued that the initiation itself was unlawful under the pre-amended section.
Petitioner’s Arguments
Madhuri Sahai filed the writ petition against the assessment order, claiming that:
1. The initiation of proceedings under Section 153C was inherently flawed, given the changes in the law.
2. She was not afforded a proper opportunity to present her case, despite responding to the show cause notice.
3. The assessment order was passed without due consideration of her submissions.
Respondent’s Defense
