Case Law Details
Vishwataj Developers Pvt Ltd Vs ACIT (Madras High Court)
Conclusion: In present case, the Hon’ble high court held Writ Jurisdiction under Article 226 cannot be invoked in a routine manner, when dispute pertains to examination of facts and when there is alternative efficacious remedy available.
Held: The assessment orders passed under Section 143(3) of the Income Tax Act, 1961, were challenged under writ petitions. The petitioners herein were involved in the business pertaining to developmental activities on lands and buildings or other structures and to rent, transfer, sell before or after development. It was contended on behalf of the Petitioner that the capital share of the petitioners-Company were in accordance with the law, and there was no illegal flow of money nor the investment is made in an inappropriate manner. When the share capital was made the approval of the Competent Authorities of the Government of India, there is no reason whatsoever to pass the impugned order of assessment contrary to the legality of investments made by petitioners-Company.
The Hon’ble High Court was of the considered opinion that all these mixed question of facts and law are to be adjudicated by the Appellate Authority in the present case with reference to the original documents and evidences. Such an exercise cannot be done by the High Court in writ proceedings as transactions were to be culled out by examining the evidences by the Experts in the field. That is the reason why the Appellate Authorities are vested with the power to adjudicate the facts and law, so as to provide findings in respect of those mixed question of facts and law. Further it was observed that the High Court cannot proceed with these complicated facts merely based on the affidavits and counter-affidavits filed by the respective parties.
The Hon’ble high Court placed reliance on its own Order in in W.P.No.3144 of 2016 etc., dated 15.04.2021, wherein the following principles are considered:-
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