2005 (1) TMI 33 - HC - Income Tax

Writ Petition Dismissed, Commissioner Appeals Powers Upheld

The court dismissed the writ petition challenging an assessment order under the Income-tax Act, 1961, emphasizing that the Commissioner (Appeals) has ... Powers Of Commissioner (Appeals) u/s 251(1)(a), (b) and (c) -Petitioner seeks to challenge the order of assessment passed u/s 158BC(c) read with section 143(3) - scope for dealing with the question of violation of the principles of natural justice while passing the impugned order of assessment - from October 1, 1998, certain expressions existing section came to be removed – Held; that, merely, because certain expressions came to be deleted from section 251(1)(c), I am afraid, it cannot be held that there is no scope for the Commissioner (Appeals) to go into the question as to the violation of principles of natural justice complained of by the assessee while prosecuting the appeal before him - I do not find any scope to entertain this writ petition in the light of the alternative efficacious remedy available to the petitioner under sections 247 to 251 - Writ petition therefore fails and the same is dismissed. Issues:Challenge to assessment order under Income-tax Act, 1961 based on violation of principles of natural justice.Detailed Analysis:The petitioner challenged the assessment order passed by the respondent under section 158BC(c) read with section 143(3) of the Income-tax Act, 1961. The petitioner contended that the order was passed without considering their grievances and that serious violations of principles of natural justice occurred during the assessment process. The petitioner argued that the Commissioner (Appeals) lacked jurisdiction to address issues related to the violation of natural justice, citing limited powers under section 251(1)(a), (b), and (c) of the Act. However, the court disagreed with this contention, emphasizing that the Commissioner (Appeals) has sufficient powers to decide appeals on their merits, including matters related to natural justice, despite certain expressions being deleted from the provisions by the Finance Act (No. 2) of 1998.The court analyzed sections 250 and 251 of the Income-tax Act to highlight the powers vested in the Commissioner (Appeals) regarding the hearing and disposal of appeals. It was noted that the Commissioner (Appeals) has the authority to fix hearing dates, allow further inquiries, and consider additional grounds of appeal not initially specified. The court emphasized that the appellate authority can pass orders as deemed fit in any case and can address matters arising from the proceedings, even if not raised by the appellant. Therefore, the court concluded that the Commissioner (Appeals) possesses adequate powers to address issues related to natural justice and assess appeals comprehensively.Consequently, the court dismissed the writ petition, stating that the petitioner had an alternative efficacious remedy available under sections 247 to 251 of the Income-tax Act. The court allowed the petitioner to file an appeal before the Commissioner (Appeals) by a specified date, considering the petitioner's grievance regarding the time limit for filing the appeal. The writ petition and related application were both dismissed, affirming the availability of statutory appeal mechanisms for the petitioner to seek redressal.