The Calcutta High Court has held that the Writ jurisdiction cannot be invoked to consider rectification application since an order passed under section 154 of the Income Tax Act, 1961 is appealable.
S.P. Paper Packaging Pvt. Ltd, the petitioner challenged the order passed by the concerned Revenue authority whereby the rectification application made by the petitioner under section 154 of the Income Tax Act, 1961 has been rejected.
Petitioner submitted that after the dismissal of the rectification application under section 154 a second rectification application has been made under the said provision and prayer has been made for disposal of the second rectification application by the concerned Revenue Officer.
During the course of the hearing Mr Majumder, Deputy Solicitor General opposed the prayer of the petitioner in view of the subsistence of appeal provision under section 246 (i)(c) of the said Act of 1961. According to the Revenue Authority, the order passed under section 154 rejecting the rectification application of the petitioner is an appealable order therefore second rectification application is not maintainable.
Having considered the submissions made on behalf of the parties and perusal of the relevant provisions of the said Act of 1961 it appears that against rejection of the rectification application filed under section 154 of the said Act of 1961 appeal lies before the appellate authority under section 246 (1)(c).
It was trite law that where an alternative efficacious speedy remedy is available, the writ petition questioning the appealable order ought not to be entertained unless a case has been made out in the writ petition that there is a gross violation of natural justice.
Justice Saugata Bhattacharyya observed that “In view of the subsistence of appeal provisions under section 246(i)(c) against the order passed under section 154 the prayer of the petitioner for giving direction upon the concerned Revenue authority to consider the second rectification application cannot be countenanced.”
While dismissing the petition, in view of the existence of the appeal provision under section 246 sub-section ( c ), the Court granted liberty to prefer an appeal against the order dated 25th November 2020 before the appellate authority.
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