Khemchand Uttamchand Bhojwani Vs ACIT (Supreme Court of India)
The case concerns a challenge by the assessee to an income tax assessment order dated 29 May 2024 and the related show cause notices. The assessee approached the High Court under its writ jurisdiction, seeking to bypass the statutory appellate mechanism provided under the Income-tax Act.
Read HC Judgment: Writ Petition Dismissed for Bypassing Statutory Appeal Remedy
The High Court examined the maintainability of the writ petition. It noted that the petition contained omnibus assertions claiming that no alternate or efficacious remedy was available, without substantiating why the statutory appeal could not be pursued. Although reliance was placed on a Supreme Court decision, the High Court found that neither the similarity of facts nor the applicability of that precedent was explained. The Court observed that the claim of absence of an alternate remedy was incorrect, as the statutory remedy of appeal was clearly available and had been communicated to the assessee through the demand notice issued along with the assessment order.
The assessee argued that appellate proceedings generally take a long time and that appellate authorities often insist on a pre-deposit of a portion of the tax demand, typically around 20%, as a condition for granting interim relief. The High Court rejected this contention, holding that inconvenience, delay, or pre-deposit requirements cannot justify invocation of extraordinary writ jurisdiction. It further noted that such requirements cannot be avoided by directly approaching the writ court, as doing so would undermine the statutory framework and burden constitutional courts with matters meant for appellate authorities.
