TaxTMI 
TaxTMI 
2007 (3) TMI 178
X X X X Extracts X X X X
X X X X Extracts X X X X
....lso being granted to the petitioner in respect of all its income arising from the educational institutions. Even though the Department denied exemption on the ground that the petitioner is not an educational institution within the meaning of Section 10(22) of the Act, this Court in Additional Commissioner of Income-tax Vs. Aditanar Educational Institution [1979] 118 ITR 235, held in favour of the petitioner and the same was confirmed by the Apex Court in Aditanar Educational Institution Vs. Additional Commissioner of Income-tax, [1997] 224 ITR 310. Thus, the petitioner was granted exemption up to the year 1998 under Section 10(22) of the Act. 2. By Finance Act, 1998, Section 10(22) of the Act was omitted and hence, the petiti....
X X X X Extracts X X X X
X X X X Extracts X X X X
....as holding shares of Limited companies, and as a consequence the provisions of Sections 11 and 12 of the Act are not applicable. Questioning the validity of the reopening of assessments, the petitioner sent a reply on 21.12.2005. But, by proceedings dated 18.1.2006, stated as 18.1.2005, rejected the objection raised by the petitioner, without giving an opportunity. Hence, W.P.Nos.2107 to 2109 of 2006. 6. Mr. G. Sarangan, learned counsel for the petitioner submits that the shares were acquired by the petitioner long before 1983 and the petitioner was granted exemption till 1998 under Section 10(22) of the Act and therefore, the refusal to grant exemption is arbitrary and unreasonable. 7. Mr. T. Ravikumar, learned Standing C....
X X X X Extracts X X X X
X X X X Extracts X X X X
....adhwani, AIR 1961 SC 1506. 10. Again in Titaghur Paper Mills Co. Ltd. v. State of Orissa, (1983) 2 SCC 433 =AIR 1983 SC 603, a Bench of Three Judges of the Apex Court held that where efficacious statutory alternative remedy is available in the statute by way of an appeal and second appeal under the Sales Tax Act, and the petitioner failed to avail relief in the appeals, the writ petition is not maintainable in law. In the said decision, it is held that (page 671) : "The Act provides for a complete machinery to challenge an order of assessment, and the impugned orders of assessment can only be challenged by the mode prescribed by the Act and not by a petition under Article 226 of the Constitution. It is now well recognised that w....
X X X X Extracts X X X X
X X X X Extracts X X X X
....katasubbiah Naidu v. S.Chellappan, 2000 (7) SCC 695, a Division Bench of this Court in Dr. K.Nedunchezhian v. Deputy CIT, [2005] 279 ITR 342, held that when there is an alternative remedy, it may not be proper for this Court to invoke Article 226 of the Constitution of India and the above principles apply with great force in tax proceedings. 13. In State of H.P. & Ors. v. Gujarat Ambuja Cement Ltd., [2005] JT 6 SC 228, the Apex Court held the relief under Article 226 of the Constitution of India can be granted in spite of the availability of alternative remedy under the statute, only based on undisputed facts, but when the High Court finds that factual disputes are involved it would not be desirable to deal with them in a writ petit....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ons to the doctrine of exhaustion of statutory remedies. First is when the proceedings are taken before the forum under a provision of law which is ultra vires, it is open to a party aggrieved thereby to move the High Court for quashing the proceedings on the ground that they are incompetent without a party being obliged to wait until those proceedings run their full course. Secondly, the doctrine has no application when the impugned order has been made in violation of the principles of natural justice. We may add that where the proceedings itself are an abuse of process of law the High Court in an appropriate case can entertain a writ petition. 16. Where under a statute there is an allegation of infringement of fundamental rights or whe....
X X X X Extracts X X X X
X X X X Extracts X X X X
....self to be more convenient and more effective is that an appeal to [say] the Secretary of State can be disposed of at one hearing. Whether the issue between them is a matter of law or fact or policy or opinion or a combination of some or all of these …. whereas of course an application for certiorari is limited to cases where the issue is a matter of law and then only it is a matter of law appearing on the face of the order." "An application for certiorari has however this advantage that it is speedier and cheaper than the other methods and in a proper case therefore it may well be right to allow it to be used…. I would, however, define a proper case as being one where the decision in question is liable to be upset as a matter of law....