Petition Dismissed: Ample Opportunity Given, Appeal Suggested Under Section 250 & 253 of Income Tax Act.

The HC dismissed the writ petition, holding that the petitioner had ample opportunity to submit evidence in the appeal under Section 250 of the Income Tax Act. The court found no violation of natural justice principles, as the petitioner failed to utilize the given opportunities. It emphasized the availability of an alternate remedy through the Income Tax Appellate Tribunal under Section 253. The HC directed the petitioner to file an appeal with the Tribunal within one month, including all grounds and evidence, and to apply for a stay of demand, which the Tribunal should decide within one month.

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Issues involved:
The judgment deals with the issues of violation of principles of natural justice in the context of a writ petition filed under Article 226 of the Constitution of India challenging an order on appeal under Section 250 of the Income Tax Act. The primary issue is whether the appellate authority's decision to pass an order without granting further time for submission of written statements and documentary evidence constitutes a violation of natural justice principles.

Summary of Judgment:

Issue 1: Opportunity for submission of evidence
The petitioner filed a writ petition challenging the order passed by the appellate authority without granting sufficient time for submission of written submissions and documentary evidence. The petitioner requested multiple extensions for filing evidence, but the appellate authority proceeded to pass the order without granting the requested time. The court held that the petitioner had been given ample opportunity to submit evidence, and failure to do so does not amount to a violation of natural justice principles. The court referred to the Supreme Court judgment in M/S. Radha Krishan Industries Vs State of Himachal Pradesh to emphasize that the availability of an alternate remedy does not bar the High Court from entertaining a writ petition in cases involving a violation of natural justice or fundamental rights.

Issue 2: Availability of alternate remedy
The respondents argued that the petitioner had been granted sufficient opportunities to submit evidence and that the remedy of appeal before the Income Tax Appellate Tribunal under Section 253 was available to the petitioner. The court agreed with the respondents and held that the petitioner could raise all grounds and produce all documents in the second appeal before the Tribunal. The court emphasized that the appellate authority had passed the order on merits and had not summarily dismissed the appeal, indicating that the High Court should not entertain the writ petition and should direct the petitioner to pursue the alternate remedy before the Tribunal.

Conclusion:
In conclusion, the court disposed of the writ petition and directed the petitioner to file an appeal before the Income Tax Appellate Tribunal within one month. The petitioner was instructed to include all available grounds and evidence in the appeal, which the Tribunal would consider while disposing of the case. Additionally, the petitioner could file an application for a stay of the demand, and the Tribunal was directed to decide on the stay application within one month of filing the appeal and stay application.

This judgment clarifies the importance of availing opportunities to submit evidence in legal proceedings and highlights the significance of following the prescribed procedures for appeals under the Income Tax Act.

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