Petitioner must file appeal under Income Tax Act within 2 weeks of court order

The Court directed the petitioner to pursue the alternative remedy of appeal provided under the Income Tax Act, emphasizing that the petitioner had been given a reasonable opportunity to present their case. The Court instructed the petitioner to file an appeal within two weeks from receiving the order's copy, and the Appellate Authority was directed to consider the appeal on its merits without objections regarding the limitation period. The Court disposed of the writ petition, leaving all rights and contentions of the parties open, and instructed the Appellate Authority to expedite the decision in accordance with the law.

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Issues:
Assessment order under Section 143(3) of the Income Tax Act, 1961 for the assessment year 2015-16 challenged. Allegation of violation of principles of natural justice by the respondent. Availability of alternative statutory remedy of appeal under the Act.

Analysis:
The petitioner challenged the assessment order passed by the respondent under Section 143(3) of the Income Tax Act, 1961, for the assessment year 2015-16, along with the consequential notice of demand issued under Section 156 of the Act. The petitioner, an individual, had sold equity shares and claimed exemption under Section 10(38) of the Act for long term capital gains. The Income Tax Department scrutinized cases of individuals claiming such exemptions, including the petitioner's case. The petitioner contended that the respondent hastily concluded the assessment without providing essential investigation reports and sworn statements, violating principles of natural justice.

The respondent argued that the investigation background was only to aid assessment proceedings, and all relevant materials were shared with the petitioner for a proper response. The respondent maintained that the order was passed after considering the petitioner's submissions and that an alternative statutory remedy of appeal was available under the Act. The Court acknowledged the disputed questions of facts and law involved, stating that such matters could not be resolved in writ proceedings. The Court directed the petitioner to pursue the alternative remedy of appeal provided under the Act, emphasizing that the petitioner had been given a reasonable opportunity to present their case.

The Court, without expressing any opinion on the case's merits, instructed the petitioner to file an appeal within two weeks from receiving the order's copy. The Appellate Authority was directed to consider the appeal on its merits without raising objections regarding the limitation period. The Court disposed of the writ petition, leaving all rights and contentions of the parties open, and instructed the Appellate Authority to expedite the decision in accordance with the law.

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