Petition Dismissed: Exhaust Statutory Remedies Before Appellate Authority; No Jurisdiction Issue or Natural Justice Violation.

The HC dismissed the petition filed under Art. 226, directing the petitioner to exhaust statutory remedies by approaching the appellate authority under the Income Tax Act, 1961. The Court found the Assessing Authority had jurisdiction and no clear violation of natural justice occurred. The petitioner was granted liberty to appeal, with the limitation period adjusted for time spent in HC.

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Issues:
1. Jurisdiction of the High Court to entertain a petition directly under Article 226 of the Constitution of India without exhausting statutory remedies.
2. Allegation of violation of principles of natural justice in the order of Assessment dated 26.09.2022 by the Assessing Unit of Income Tax Department for the Assessment Year 2020-21.
3. Consideration of reply to show-cause notice and request for personal hearing by the Assessing Authority.
4. Determination of whether the impugned order of Assessment was passed by the competent authority.
5. Dismissal of the petition and direction to approach the appellate authority under the Income Tax Act, 1961 for challenging the order of Assessment.

Analysis:

The High Court addressed the issue of the jurisdiction to entertain a petition directly under Article 226 of the Constitution of India without exhausting statutory remedies. The Court acknowledged that while the availability of an alternative remedy does not bar a petition under Article 226, it may be entertained if the impugned order is passed by an incompetent authority or violates natural justice principles. The Court highlighted that the writ petition can also be entertained if the vires of any statutory provision is challenged.

Regarding the allegation of violation of principles of natural justice in the order of Assessment, the petitioner contended that the Assessing Authority did not consider the reply to the show-cause notice or provide an opportunity for a personal hearing. However, upon examination, the Court found that the petitioner failed to submit the reply before the deadline and requested a personal hearing after the submission deadline had passed.

The Court determined that the impugned order of Assessment was passed by the Assessing Authority with jurisdiction in the matter. Despite disputes over the receipt of the reply and the request for a personal hearing, the Court found that it was not a clear case of a violation of natural justice. The Court left this aspect to be considered by the appellate authority if the petitioner chooses to appeal under the Income Tax Act, 1961.

Ultimately, the Court dismissed the petition and directed the petitioner to approach the appellate authority for challenging the order of Assessment. The Court granted liberty to the petitioner to avail the remedy of appeal under the Act, with the provision that the time spent in the High Court would not be counted towards the limitation period for filing the appeal.

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