2021 (5) TMI 810

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... "the Act"). The impugned assessment order concerns the assessment year (in short 'AY') 2018-2019. Besides this, challenge is also laid to the notice of demand issued under Section 156 of the Act and the notice for initiation of penalty proceedings issued under Section 274 read with Section 270A of the Act of even date, i.e., 22.04.2021. 2. On the previous date, i.e., 10.05.2021, while issuing notice in the matter, we had recorded the following: "2. Mr. Ajay Vohra, learned senior counsel, who appears on behalf of the petitioner, says that there has been a breach of principles of natural justice. 2.1. According to Mr. Vohra, the show cause notice-cum-draft assessment order dated 18.04.2021 required the petitioner to submit its response ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ons are to resist the writ petition. To be noted, though, counter-affidavit has not been filed, Mr. Bhatia chooses to resist the petition based on the record presently available with the Court. 3.1. We have queried Mr. Bhatia as to, whether the facts adverted to in our order dated 10.05.2021, are disputed. Mr. Bhatia says that though the facts stated therein are not disputed, the relief sought in the writ petition is resisted on two grounds: (i) First, the petitioner has an alternative remedy available to it under the Act. (ii) Second, on the previous occasions, that is, prior to the issuance of the show cause notice-cum-draft assessment order dated 18.04.2021, several opportunities were given to the petitioner. 4. Having heard Mr. Aj....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....xpired. The denial of opportunity to the petitioner to place before the assessing officer, its objections and/or explanations by way of a response has led to breach of principles of natural justice, resulting in grave civil consequences for the petitioner. 6.1. The other argument advanced on behalf of the respondent/revenue that several opportunities were given to the petitioner, before issuance of the show cause notice-cum-draft assessment order, and hence, merely because the impugned assessment order was passed prior to the expiration of deadline prescribed for preferring a response, the same would not result in violation of principles of natural justice - is, equally, untenable. The reason is this: once the respondent/revenue issued a s....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... would have sufficient opportunity to raise this question viz. whether the Income Tax Officer had reason to believe that underassessment had resulted from non-disclosure of material facts, before the Income Tax Officer himself in the assessment proceedings and if unsuccessful there before the appellate officer or the Appellate Tribunal or in the High Court under Section 66(2) of the Indian Income Tax Act. The existence of such alternative remedy is not however always a sufficient reason for refusing a party quick relief by a writ or order prohibiting an authority acting without jurisdiction from continuing such action." 2. "14. The power to issue prerogative writs under Article 226 of the Constitution is plenary in nature and is not limite....