Law:

Section:

Section 263 of the Income-tax Act, 1961 [Corresponding to section 33B of the Indian Income-tax Act, 1922] - Revision - Of orders prejudicial to interests of revenue - Assessment years 1953-54 to 1960-61 - Alternate and equally efficacious remedy of appeal was available to assessee against order of respondent No. 1 Commissioner under section 33B of 1922 Act - However, assessee filed writ petition in High Court - No explanation was given in writ petition for not preferring appeal - Whether High Court would have been justified in circumstances of case in dismissing writ petition in limine - Held, yes - Whether since on merits High Court had found after examination of evidence that assessee was given opportunity of being heard before respondent No. 1 made order under section 33B, there was no reason to differ from finding of High Court in this aspect - Held, yes FACTS For the relevant assessment years, a notice was issued to the assessee for cancellation of the assessment and a date was fixed for hearing. On the date of hearing, none appeared on behalf of the assessee. The Commissioner in exercise of power under section 33B of the 1922 Act cancelled, the assessment and directed the ITO to make fresh assessment. The assessee filed a writ petition alleging that no notice was issued in connection with the proceedings under section 33B of the 1922 Act and no opportunity was given to the appellant for being heard before making the order. A rule nisi was issued and was made absolute thereafter. On appeal, the division bench allowed the appeal on the ground that due opportunity was given to the assessee for being heard and the order of respondent No. 1 reopening the assessment under section 33B of the 1922 Act was not defective in law. On appeal to the Supreme Court: HELD Under section 33B, sub-section (3) of the 1922 Act, a right of appeal was available to the appellant and would have been more appropriate, because questions of fact regarding the service of the notice were involved and such questions could have been properly decided in the proceeding of the appeal. It is well-settled that when an alternative and equally efficacious remedy is open to a litigant, he should…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492