WHETHER WRIT CAN BE DISMISSED ONLY ON THE GROUND OF AVAILABILITY OF ALTERNATIVE REMEDY?

[2017] 390 ITR 10 (SC)
[IN THE SUPREME COURT OF INDIA]

JEANS KNIT PRIVATE LTD.
v.
DEPUTY COMMISSIONER OF INCOME-TAX AND OTHERS

A. K. SIKRI and ABHAY MANOHAR SAPRE JJ.

December 8, 2016.

Playlist: 148, Writ
148: Issue of notice where income has escaped assessment

Question: WHETHER WRIT CAN BE DISMISSED ONLY ON THE GROUND OF AVAILABILITY OF ALTERNATIVE REMEDY?

1. The writ petitions were dismissed by the High Courts as not maintainable on the ground of availability of alternative remedy.

2. Writ petitions were filed by assessee to challenge the notices u/s 148 and the reasons recorded by the A.O.

3. S.C was of the view that the view taken by the High Courts were contrary to the law laid down by the SC in Calcutta Discount Co. Ltd. v. ITO (1961) 41 ITR 191 (SC)

4. SC stayed the proceeding u/s 148 till the disposal of writ petitions by the respective High Courts.

5. S.C said that court is conscious of the fact that High Courts has referred to the Judgment of this Court in CIT v. Chhabil Dass Agarwal [2013] 357 ITR 357.

6. SC said that the principal laid down in the case of CIT v Chhabil Dass Agarwal [2013] 357 ITR 357 does not apply to these cases.

7. The SC in Calcutta Discount Co. Ltd. v. ITO [1961] 41 ITR 191 (SC) held that the existence of alternative remedy is not always sufficient reason for refusing a party quick relief by a writ or prohibiting an authority acting without Jurisdiction from continuing such action. The Supreme declared that the High Courts have power to issue a writ in a fit case, prohibiting an executive authority from acting without Jurisdiction as it would otherwise result in a person being subjected to lengthy proceedings and unnecessary litigation.

#JeansKnitPrivateLtd
#8December2016
#section148
#writ
#IssueOfNotice
#IncomeEscapedFromAssessment
#IncomeTaxNotices
#IncomeTaxCases
#incometaxcasesanalysis
#IncomeTaxLaw
#advocateamitkumargupta
#9811291390(Call only after taking time on whatsApp)

Link for some important videos: