Pre-consultation notice cannot be challenged through writ petition under IT Act: Madhya Pradesh High Court

Pre-consultation notice cannot be challenged through writ petition under IT Act: Madhya Pradesh High Court

The bench cited the judgment of the Supreme Court in a similar case

The Madhya Pradesh High Court has held that the notice under the Income Tax Act, 1961 cannot be challenged through a writ petition since the Act provides a statutory remedy.

The assessee, Harinder Singh Bedihas had challenged an order and notice issued by the authorities under the IT Act on the ground that it violated the 04 May 2022 judgment passed by the Supreme Court in the Union of India and others vs Ashish Agarwal case.

A division bench comprising Chief Justice Ravi Malimath and Justice Vishal Mishra observed that the Act provided the provision of an appeal. "Therefore, the petitioner has a remedy to challenge the order/notice by way of filing an appeal. The matter raised by him on the jurisdiction of the authorities can always be considered by the authorities."

The court added, "Even otherwise, a writ petition against a show-cause notice is not maintainable in view of the law laid by the Supreme Court in the case of Kunishetty Satyanarayan. The Supreme Court while modifying the judgment, had granted two weeks' time to reply to the notice."

Thus, dismissing the writ petition, the court held, "We refrain from interfering in the impugned order/notice passed by the authorities, as it was issued in pursuance to the judgment passed by the Supreme Court."

The two-judge bench ruled, "The petition is not maintainable in view of the laws laid down by the Supreme Court in the case of Kunishetty Satyanarayan and in view of the availability of alternative efficacious remedy to the petitioner."