CHHATTISGARH RAJYA OPEN SCHOOL Vs. UNION OF INDIA

JUDGEMENT

(1.) The present appeal is against the order dtd. 25/11/2022 passed by the learned Single Judge in WP (T) No.250 of 2022 wherein the order dtd. 17/09/2022 was under challenge which was passed under Sec. 143 (3) read with Sec. 144 B of the Income Tax Act.

(2.) Learned counsel for the appellant would submit that initially after submission of return of income, scrutiny was opened and thereafter show-cause notices were issued on 29/08/2022 and 09/09/2022. The appellant filed its reply on 12/09/2022. In the show-cause certain income was proposed to be added. The appellant filed its reply and the total assessment was worked out to Rs.9,84,42,228.00. It is contended by the appellant that while such assessment was worked out, certain part of the assessment comprised disallowance to confidential expenses. He would further submit that part of that disallowance of confidential expenses was not the part of show-cause, as such the appellant could not respond to it and almost it amounted to assessment without giving any show-cause to the particular subject of disallowance of confidential expenses. For the said assessment it amount to not hearing to the appellant, therefore, the rules of natural justice were defeated. Consequently, the writ petition was maintainable before the learned Single Judge despite the alternative appellate remedy is available. He would further submit that in order to arrest the recovery by way of stay as per the Income Tax Act, the appellant would be required to deposit 20% of the demand. He would further submit that his claim in this petition is confined to disallowance of confidential expenses to the extent of Rs.3,55,17,204.00.

(3.) Learned counsel for the respondent opposes the submission advanced by learned counsel for the appellant and would submit that the appellant has an efficacious alternative statutory remedy under Sec. 246 (A) of the Income Tax Act, therefore, the order passed by the learned Single Judge is well merited as the writ petition directly would not lie before this Court.