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2021 (7) TMI 1203 - MADRAS HIGH COURTReopening of assessment u/s 147 - Scheme of Amalgamation, Arrangement and Compromise Adopted - assessee challenges the assessment orders on the ground that the respondent had erred in rejecting the claim of deductions on inventories return off, sundry debtors return off and loans and advances written off as per the Court orders dated 17.12.2007 for the assessment years 2001-02 to 2003-04 on the basis that the said claims were made for the first time in the revised return - maintainability of the revised return beyond the period of limitation as well as the pendency of reopening of the proceedings under Section 148 - HELD THAT:- An affidavit in a writ proceedings is insufficient to make a fact finding with reference to the documents and evidences. Therefore, the importance of an appellate remedy to be exhausted, at no circumstances, be undermined. High Court cannot dispense with the appellate remedy in a routine manner. Writ Petitions are filed on various grounds some times with an idea to avoid delay in disposal of appeals - legislative intention to exhaust the appellate remedy is to be considered by the Court. The legislatures thought fit that by providing an appeal, complete adjudication of facts, circumstances, documents and evidences would be completed. Thus, such a valuable remedy provided has to be exhausted in all circumstances. Petitioner has raised certain legal grounds for the purpose of entertaining a writ petition. All such legal grounds may be pleaded before the appellate authority for effective adjudication. The final fact finding by the appellate authority would be of greater assistance to the High Court for effective disposal of the writ petition. The parties aggrieved must, at the first instance, prefer an appeal, exhaust the same and thereafter, they have to approach the appropriate form. The power of review of the High Court under Article 226 of the Constitution of India is to scrutinize the processes through which a decision is taken by the competent authority in consonance with the provisions of a statute and rules, but not the decision itself. Therefore, the power of judicial review under Article 226 of the Constitution of India cannot be extended for the purpose of adjudicating the disputed facts with reference to the documents and evidences, which cannot be done at all. Based on the mere affidavit and some xerox copies of the documents, High Court cannot form an opinion with reference to the complete facts. As far as the Income Tax matters are concerned, it involves certain technicalities and intricacies in accountancy. Such intricacies and the expertise are to be exercised by the competent appellate authority of the Department of Income Tax, who is having thorough knowledge about the taxation policies. Therefore, the finding of appellate authority in such circumstances are of paramount importance for the High Court to exercise the power of judicial review. This Court is of the considered opinion that in all these cases, the petitioner has challenged the assessment orders passed admittedly and appeal is contemplated under the provisions of the Act. There is no other reason for the purpose of entertaining a writ petition before exhausting the appellate remedy and therefore, the petitioner-company is at liberty to approach the appellate authority by filing an appeal in a prescribed format and in compliance with the provisions of the Act. In the event of filing any such appeal, the appellate authority shall consider the same on merits and in accordance with law and by affording opportunity to the writ petitioner and dispose of the appeal as expeditiously as possible.
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