High Court declines to entertain Writ Petition against income tax penalty order in view of alternative remedy

High Court declines to entertain Writ Petition against income tax penalty order in view of alternative remedy available by way of appellate provisions 

ABCAUS Case Law Citation:
ABCAUS 2406 (2018) 07 HC

The petitioner assessee had not submitted his return of income an audit reports for the relevant assessment year within the prescribed due date and were filed belatedly.

A show cause notice was issued to the Petitioner and eventually  the Assessing officer imposed penalties under section 271F and section 271B of the Income Tax Act, 1961 (the Act). Later, demand notices under Section 156 of the Act were issued.

The petitioner filed a Writ Petition before the Hon’ble High Court challenging the penalty and the demand notices.

The petitioner tried to convince Hon’ble High Court that it was an eminent matter to be entertained, despite the alternative remedy the petitioner had.

On the other hand, the Revenue contended that the penalty order itself contains a reference to the appellate provision.

The Hon’ble High Court observed that under Section 246 of the Act, the petitioner had an efficacious alternative remedy.

His Lordship declined to entertain the writ petition.

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