2023 (8) TMI 1398 - HC - Income Tax

Writ Petition Dismissed: Court Upholds Commissioner's Order, Citing Adequate Defense Opportunity and Appeal Availability.

The HC dismissed the writ petition filed by the petitioner challenging the Commissioner's order under Section 12AB(4) of the Income Tax Act, citing denial ... Writ petition assailing the order passed u/s 12AB(4) - ground for availing the writ remedy as petitioner being denied of the principles of natural justice and a fair and reasonable opportunity of defence - HELD THAT:- Having considered the factual aspects of the case, more particularly, the contents of the impugned order which would reflect that the petitioner had been contesting the case right from the inception till the final order has been passed and he has been representing before the authority at every stage, prima facie establishes that the petitioner had reasonable opportunity of hearing and defence before the authority concerned, whether the order is appropriate, justified or the veracity of the order is concerned. Since there is a provision of appeal available to the petitioner under statue itself, we are not inclined to entertain the writ petition only on the ground that there being an alternative statutory remedy of appeal available to the petitioner. Accordingly, the writ petition, at this juncture, stands rejected on the ground that there has been an alternative statutory remedy of appeal available to the petitioner. However, the right of the petitioner would be reserved to avail the alternative statutory remedy of appeal. Issues involved: The judgment deals with the denial of principles of natural justice and a fair opportunity of defense to the petitioner in an order passed under Section 12AB(4) of the Income Tax Act by the Commissioner of Income Tax.Summary:Issue 1: Denial of Principles of Natural Justice and Fair Opportunity of DefenseThe petitioner filed a writ petition challenging the order passed by the Commissioner of Income Tax (Exemptions) under Section 12AB(4) of the Income Tax Act, alleging denial of natural justice and fair opportunity of defense. The court noted that the petitioner had received show cause notices, entered appearance before the authorities, and contested the case on merits throughout the proceedings. It was observed that the petitioner had a reasonable opportunity of hearing and defense before the authority concerned. The court emphasized that since there was an alternative statutory remedy of appeal available to the petitioner, the writ petition was rejected. The judgment distinguished the reliance placed on the case of Harbansial Sahnia Vs. Indian Oil Corpn AIR 2003 SC 2120, stating that it was not applicable to the present case where the petitioner had actively participated in the proceedings.ConclusionThe court rejected the writ petition on the grounds of the availability of an alternative statutory remedy of appeal to the petitioner. The petitioner was reserved the right to avail the statutory remedy of appeal. Any pending miscellaneous applications in the writ petition were directed to be closed with no order as to costs.