Natural justice can override alternative tax remedies when freight income is estimated without prior notice or hearing.

A writ petition was treated as maintainable despite an available appellate remedy under Section 246 of the Income-tax Act, 1961 where a prima facie breach of natural justice was alleged. The challenge concerned an assessment under Section 143(3) in which freight income was estimated without prior notice or hearing, and the petitioner contended that material filed with the reply had been ignored. On that basis, the alternative remedy was not considered a bar at this stage, and interim protection was granted against recovery pending further hearing.

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Issues: (i) Whether the writ petition was maintainable despite the availability of an appellate remedy under Section 246 of the Income-tax Act, 1961 when violation of natural justice was alleged; (ii) whether the assessment order under Section 143(3) of the Income-tax Act, 1961 disclosed a prima facie breach of natural justice in estimating freight income without prior notice or hearing.

Analysis: The alternative statutory remedy was not treated as a bar where a prima facie violation of natural justice was shown. The challenge was directed against the assessment of freight income and the petitioner's claim that material furnished with the reply had been ignored, while the proposed estimation basis had not been put to notice.

Outcome: Interim stay was granted against recovery of Rs. 4,85,61,534/- and the matter was listed for further hearing.

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