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Case Details: Zydus Healthcare Ltd vs. Assistant Commissioner of Income Tax - [2025] 180 taxmann.com 207 (SIKKIM)

Judiciary and Counsel Details

Mrs Meenakshi Madan Rai, J.
Mukesh M. Patil, Sr. Adv., Anup Kumar Bhattacharjee & Ms Babita Kumari, Advs. for the Petitioner.
Ms Sangita Pradhan, Dy. Solicitor General of India for the Respondent.

Facts of the Case

Assessing Officer (AO) received information that income had escaped assessment within the meaning of section 147. Thus, it issued a notice under section 148A(b) against the assessee on three issues, namely, (a) under charge of income under section 115JC in relation to donation claimed under section 80GC, (b) under determination of Book Profit and escapement of income in respect of Excise Duty refund of Rs. 22.99 crores, (c) under charge of income of Rs. 22.99 crores by claiming Excise Duty refund as Capital Receipt.

The assessee responded vide communication, after which the Order under section 148A(d) was passed by the Assessing Officer, discussing and summarising the findings on the above issues.

The assessee filed a writ petition before the High Court. The revenue contended that the assessee had not exhausted the alternative remedies and, therefore, the writ was not maintainable.

High Court Held

The High Court held power to issue prerogative writs under Article 226 of the Constitution of India is plenary and discretionary in nature, and the availability of an alternative remedy does not bar the exercise of such jurisdiction. Thus High Court, in exercise of its discretion, could entertain a writ petition against an order under section 148A(d), notwithstanding the availability of an alternative remedy.

List of Cases Referred to

Anshul Jain v. Pr. CIT [2022] 143 taxmann.com 38/289 Taxman 239/449 ITR 256 (SC) (para 1)
Anshul Jain v. Pr. CIT [2022] 143 taxmann.com 37 (Punj & Har) (para 2)
Red Chilli International Sales v. ITO [2022] 140 taxmann.com 177/288 Taxman 107/[2023] 452 ITR 218 (Punj & Har) (para 2)
Red Chilli International Sales v. ITO [2023] 146 taxmann.com 224/291 Taxman 524/452 ITR 222 (SC) (para 2)
UTTAR PRADESH Power Transmission Corporation Ltd. v. C.G. Power and Industrial Solutions Ltd. [2021] 5 taxmann.com 932 (SC) (para 2)
Whirlpool Corporation v. Registrar of Trade Marks AIR 1999 SC 22 (para 2)
Pimpri Chinchwad Municipal Corporation v. Gayatri Construction Company (2008) 8 SCC 172 (para 2)
Godrej Sara Lee Ltd. v. Excise and Taxation Officer-cum-Assessing Authority [Civil Appeal No. 5393 of 2020, dated 1-2-2023] (para 2).