HC Dismisses Writ Due to Availability of Alternative Appeal Remedy

Ramdhani Jaiswal Vs Commissioner of Income Tax Circle 2 (Calcutta High Court)

Introduction: In a recent ruling, the Calcutta High Court addressed the writ petition filed by Ramdhani Jaiswal against the Commissioner of Income Tax Circle 2. The petitioner contested an assessment order under Section 147 of the Income Tax Act, 1961, pertaining to the assessment year 2016-17, alleging violations of the principles of natural justice.

Analysis: The core contention of the petitioner revolved around an assertion that the assessment order did not consider his adjournment application on a show cause notice issued. However, upon examination, the court identified that the petitioner failed to respond to the show cause notice in the stipulated time frame, nor did he produce any evidence of having requested an adjournment within the designated period. Furthermore, the impugned assessment order was issued after the given deadline, emphasizing that the Income Tax Authority acted within its rights. The court highlighted that since the petitioner neither filed an adjournment petition nor lodged an objection before the assessing officer by the given deadline, any claims of prejudice are ungrounded. Additionally, the court mentioned the appealable nature of the impugned assessment order, suggesting that alternative remedies were available.

Conclusion: The Calcutta High Court’s judgment underscores the importance of adhering to procedural timelines and the need for litigants to exercise due diligence in legal matters. By dismissing the writ petition, the court upheld the validity of the assessment order under Section 147 while acknowledging the petitioner’s right to appeal against the decision, offering a time extension for this purpose.

FULL TEXT OF THE JUDGMENT/ORDER OF CALCUTTA HIGH COURT

By this writ petition, petitioner has challenged the impugned assessment order dated 22^nd May, 2023, under Section 147 read with Section 144B of the Income Tax Act, 1961, relating to assessment year 2016-17. Petitioner submits that the aforesaid order has been passed in violation of principles of natural justice by not considering his application for adjournment on the show cause notice dated 15t^h May, 2023.

I have perused the writ petition from which it appears that the show cause notice as to why proposed variation should not be made was issued on 15t^h May, 2023 and by which petitioner was asked to give his response by 10.15 hours on 17^th May, 2023. Petitioner submits that petitioner could not file his reply to the show cause notice which petitioner attempted to file on 19^th May, 2023 though time was granted to submit the reply was within 17^th May, 2023 at 10 a.m. Petitioner submits that petitioner had requested for adjournment on 20t^h May, 2023 but could not produce any document to show that any adjournment petition was filed by the petitioner before the assessing officer concerned against the show cause notice in question by which petitioner was asked to file reply/objection by 17^th May, 2023.

Considering the facts and circumstances of the case, I am of the view that in this case it cannot be said that no opportunity to submit response/reply to the show cause notice was given to the petitioner and that the impugned assessment order was passed before the expiry of time granted to the petitioner which was by 17^th May, 2023. In this case impugned order was passed on 22ⁿd May, 2023. As such respondent Income Tax Authority cannot be faulted since neither any adjournment petition nor any objection was filed before the assessing officer on 17^th May, 2023 which was the time granted to the petitioner. Furthermore, the impugned assessment order is an appealable order.

In view of the facts and circumstances of the case, I am not inclined to interfere with the impugned assessment order under Section 147 of the Act and accordingly this writ petition being WPO 1407 of 2023 is dismissed on the ground of availability of alternative remedy by way of appeal.

In view of payer made by the petitioner for extending the time to file appeal before the CIT (Appeals), time is granted to the petitioner to file appeal against the impugned assessment order within two weeks from date and if such appeal is filed within the time stipulated herein, the appellate authority shall consider the appeal on merit without raising the point of limitation.