[SC] Writ Petition Challenging Reassessment Cannot Be Dismissed Merely Based On Alternative Remedy

The Supreme Court of India recently, in Red Chilli International Sales v ITO [2023] 146 taxmann.com 224 (SC), set aside a judgment of the High Court, and held that a writ petition cannot be dismissed merely on the ground that alternative remedy was available.

The Court held that:

• It should have been examined by the High Court as to whether jurisdiction preconditions for issue of notice under Section 148 of the Income Tax Act, 1961 were satisfied.

• The provisions of reopening have undergone substantial changes vide Finance Act, 2021, and require a deeper and in-depth consideration keeping in view the earlier case law.

• The writ petition could not have merely been dismissed on the basis of availability of alternative remedy, and the issue req to be examined in depth.