Wp/15255/2021 Of V.thillainatesan v. The Additional Commissioner Of Income Tax

IN THE HIGH COURT OF JUDICATURE AT MADRAS CORAM THE HONOURABLE MR. JUSTICE S.M.SUBRAMANIAM V.Thillainatesan..Petitioner The Additional Commissioner of Income Tax,Income Tax Department,National E-Assessment Center,Delhi...Respondent Writ Petition is filed under Article 226 of theConstitution of India, praying for the issuance of a Writ ofCertiorarified Mandamus, calling for the records on the file ofthe respondent vide Pan No. -ITBA/AST/S/143(3)/2021-22/1032530155(1) dated 19.04.2021 and quash the same as illegalas devoid of merits and direct the respondent to re-do theassessment for the year 2018-2019 after providing reasonableopportunities to the petitioner, by following the due process oflaw. Senior Standing Counsel for Income Tax. The writ on hand is instituted questioning the validityof the final assessment order passed by the respondent underSection 143(3) read with Section 144-B of the Income Tax Act,1961 [hereinafter referred to as the 'Act 1961', in short]. 2. Admittedly, the order impugned is an appelable orderunder the Income Tax Act. Instead of preferring an appeal, the https://hcservices.ecourts.gov.in/hcservices/ petitioner has chosen to file the present writ petition mainlyon the ground that the order impugned was passed in violation ofthe principles of natural justice and without application ofmind as well as not considering the statutory provisions. 3. Perusal of the grounds raised in order to assail thefinal order of assessment, this Court is of the consideredopinion that the Appellate Authority, being a Quasi JudicialAuthority, is empowered to adjudicate the mixed question offacts and law in an effective manner with reference to theoriginal documents and the evidences made available. 4. Exhausting the appellate remedy under the Statute isof paramount importance. Court, at no circumstances, shallentertain a writ petition before exhausting the statutory appealremedy, as the Appellate Authority is a final fact findingauthority with reference to the disputed facts. 5. The High Court cannot adjudicate the disputed factselaborately in writ proceedings. Thus, the findings of anAppellate Authority regarding facts would be of greaterassistance to the High Court for the purpose of exercise ofjudicial review by the High Court under Article 226 of theConstitution of India. Therefore, the importance of appellateremedy, at no circumstances, be undermined and the aggrievedperson need not be unnecessarily deprived of a valuableopportunity of appellate remedy provided under the Act. 6. The object as well as the legislative intention areto ensure that the facts are adjudicated without any ambiguity.Thus, any order in original is to be tested before the AppellateAuthority for the purpose of conclusion of the disputed factsand without exhausting the appellate remedy to the writ remedyis not preferable and the High Court must be cautious and slowin entertaining the writ petition in such circumstances. 7. Undoubtedly, in extraordinary cases and onexceptional circumstances, if any order is passed by anauthority incompetent having no jurisdiction or an allegation ofmala fides are raised and substantiated, writ proceedings may beentertained. Even in such circumstances, the authority againstwhom such allegation of mala fides are raised must be impleadedas a party respondent in his personal capacity in the writproceedings. In all other circumstances, the parties aggrievedare expected to exhaust the appellate remedy, which is ofvaluable and would be of assistance for the High Court inproviding complete justice to the parties to the lis. 8. Preferring an appeal is the rule. Entertaining a WritPetition before exhausting the appellate remedy is an exception. https://hcservices.ecourts.gov.in/hcservices/ 8. Preferring an appeal is the rule. Entertaining a WritPetition before exhausting the appellate remedy is an exception. https://hcservices.ecourts.gov.in/hcservices/ Undoubtedly, writ proceedings may be entertained beforeexhausting the appellate remedy. However, it is to be ensuredthat there is an imminent threat or gross injustice warrantingurgent relief to be granted. Mere violation of principles ofnatural justice is insufficient to entertain a writ proceedingsunder Article 226 of the Constitution of India, as every WritPetition is filed based on one or the other ground stating thatthe principles of natural justice is violated or statutoryrequirements are not complied with or there is an illegality orotherwise. Thus, dispensing with an appellate remedy is to begranted cautiously in view of the fact that the very purpose andobject of legislation providing an appellate remedy cannot bediluted nor the benefit be denied to the aggrieved person toexhaust the same. The statutory appellate authorities are thefinal fact finding authorities. Thus, the finding to be made bysuch appellate authorities with reference to the documents andevidences are of paramount importance for the purpose ofexercise of judicial review by the High Court under Article 226of the Constitution of India. 9. The power of judicial review of the High Courtunder Article 226 of the Constitution of India is to scrutinizethe processes through which a decision is taken by the competentauthority by following the procedures as contemplated, but notthe decision itself. Therefore, the routine entertainment of aWrit Petition by dispensing with appellate remedy is notpreferable and such an exercise would cause injury to theinstitutional hierarchy and the importance attached to suchappellate institutions. The appellate institutions providedunder the statute at no circumstances be undermined by thehigher Courts. The appellate forums are the final fact findingauthorities and more so, possessing expertise in a particularfield. Thus, the finding of such appellate forums would be avaluable assistance for the purpose of exercise of judicialreview by the High Court under Article 226 of the Constitutionof India. The High Court cannot conduct a roving enquiry withreference to the facts and circumstances based on the documentsand evidences. Based on the mere affidavits filed by thelitigants, the disputed facts cannot be concluded. Thus, theimportance of fact finding by the appellate forums is of morevalue for the purpose of providing complete justice to theparties approaching the Court of law. 10. The point of delay may be an acceptable ground forthe purpose of entertaining a Writ Petition. The practise offiling the Writ Petition without exhausting the statutoryremedies are in ascending mode and such Writ Petitions are filedwith a view to avoid pre-deposits to be made in statutoryappeals and on the ground that the appellate remedies are timeconsuming. 11. In view of the facts and circumstances, thepetitioner is at liberty to approach the jurisdictionalAppellate Authority as contemplated under the Act for thepurpose of redressal of his grievances.12. With the above liberty, the writ petition standsdisposed of. However, there shall be no order as to costs.Consequently, connected miscellaneous petitions are closed. Sd/-Assistant Registrar(CS-VI) // True Copy// Sub Assistant Registrar SvnTo:The Additional Commissioner of Income Tax,Income Tax Department,National E-Assessment Center,Delhi. +1cc to M/S.Hema Muralikrishnan, Advocate, S.R.No.35758 WP No.15255 of 2021 AK(CO)SU(12/08/2021)