The Gujarat High Court Division Bench of Chief Justice Aravind Kumar and Justice Ashutosh J Shastri recently held that, no remedy can be availed under writ jurisdiction against reopening of income tax assessment when alternate statutory remedy by way of appeals exist.
Nikunt Raval, learned advocate for Ms. Kalpana Raval, appearing for the revenue contended that “re-opening of the assessment is challenged at the drop of the hat and attempts are made to call upon the constitutional court to go into facts of the case and alternate remedy of filing an appeal is always available to such assessees.
Soparkar, appearing for the assessee argued that, first of all the very issuance of impugned notice itself is unreasonable, high handed and arbitrary act of the respondent authority.
The petitioner counsel further submitted that by such arbitrary action, petitioner is sought to be saddled with a huge amount on assessment to the tune of Rs.10 crores which is not substantiated from any material. Hence, in the background of these facts, he prayed that the proceedings of reopening, being without authority of law, may be quashed.
It was observed as “Since the aforesaid factual details are very much expedient to proceed ahead in contemplated action, we find it necessary that the authority must be allowed to examine at length while reopening the assessment and we cannot usurp such discretion of an authority in the aforesaid peculiar background of these facts, more particularly when at various levels, as indicated above, certain admissions of petitioners are also worth proper scrutiny and as such, fact finding authority is required to analyze them freely”.
The bench headed by the Chief Justice thus observed that, “we find no such eventuality has arisen to assume that authority will not examine or petitioner will not have any opportunity to put forth his case during the proceedings post-issuance of notice impugned”, and dismissed the writ petition.
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