Writ Petitions Dismissed: Court Emphasizes Alternate Remedies Under Section 246A for Income Tax Disputes

M/s. Alliance Broadcasting Private Limited Versus The Assistant Commissioner of Income Tax, Central Circle 2, Madurai

M/s. Alliance Broadcasting Private Limited Versus The Assistant Commissioner of Income Tax, Central Circle 2, Madurai - [2023] 457 ITR 385 (Mad) Issues:
Challenging assessment orders under different Assessment Years, invoking Section 153C instead of Section 153A, compliance with Section 127 procedure, service of notices under Income Tax Act.

Analysis:
1. Challenging Assessment Orders: The Writ Petitions challenge assessment orders for various Assessment Years primarily on the ground that Section 153C of the Income Tax Act was invoked instead of Section 153A. The petitioner, a Company part of a group, faced assessment proceedings due to incriminating materials seized during a search, leading to additions in income tax liability for specific years.

2. Compliance with Section 127: The petitioner argued that the procedure under Section 127 of the Act was not followed, rendering further proceedings void-abinitio. However, the court found this debatable as the petitioner's jurisdiction was shifted, not transferred, and the applicability of Section 127 in this context was questionable.

3. Service of Notices: The issue of proper service of notices under the Income Tax Act was raised. The Respondent contended that notices were validly issued under Section 153C based on materials seized during searches of related entities within the group, justifying their actions and challenging the petitioner's claim for Section 153A applicability.

4. Maintainability of Writ Petitions: The court considered the maintainability of the Writ Petitions in light of the arguments presented. It noted discrepancies in the submissions regarding notice issuance and jurisdiction transfer. The court emphasized that the determination of whether Section 153A or 153C should apply depended on factual considerations, making it unsuitable for writ jurisdiction.

5. Alternate Remedies: Citing the availability of statutory appellate remedies under Section 246A of the Income Tax Act, the court found the Writ Petitions not maintainable. It referred to precedents emphasizing the rule of alternate remedy, especially in fiscal law matters, and dismissed the petitions while directing the Appellate Authority to hear any appeals filed without influence from the court's observations.

In conclusion, the court dismissed the Writ Petitions due to the presence of alternate remedies, emphasizing the rule of alternate remedy in fiscal law matters. The judgment highlighted the need for factual examinations unsuitable for writ jurisdiction and directed the Appellate Authority to proceed with any appeals filed, independent of the court's observations.