2002 (2) TMI 25 - HC - Income Tax

Dismissal of Writ Petition Upheld, Statutory Remedy Must Be Exhausted Before Tribunal Challenge

The High Court of Rajasthan dismissed the writ petition challenging the Commissioner of Income-tax (Appeals) order, citing the need to exhaust the ... Challenge to the proviso to section 234C(1) of the Income-tax Act, 1961 - constitutional validity - maintainability of writ petition in presence of alternative statutory appeal - prohibition on bypassing statutory remedy of appeal / exhaustion of statutory remedies - availability of further remedy under section 260A after Tribunal decisionMaintainability of writ petition in presence of alternative statutory appeal - prohibition on bypassing statutory remedy of appeal / exhaustion of statutory remedies - challenge to the proviso to section 234C(1) of the Income-tax Act, 1961 - constitutional validity - availability of further remedy under section 260A after Tribunal decision - Amendment to writ petition to include challenge to the order of the Commissioner of Income-tax (Appeals) and maintainability of the writ in view of pending statutory appeal before the Income-tax Appellate Tribunal. - HELD THAT: - The Court refused the proposed amendment because permitting a challenge to the order of the Commissioner of Income-tax (Appeals) in the writ petition would amount to sanctioning a bypass of the statutory appeal remedy before the Income-tax Appellate Tribunal. Learned counsel acknowledged an appeal was already pending before the Tribunal; the Court observed that if the Tribunal decides adversely the petitioner would have a further remedy under section 260A of the Income-tax Act. Although the petitioner sought to press the constitutional validity of the proviso to section 234C(1) in the writ petition and urged that the High Court should hear the merits, the Court held that the validity of the proviso can be challenged after the Tribunal's decision and that there was no purpose in keeping the writ pending. The Court therefore dismissed the writ petition while expressly keeping open the petitioner's right to contest the proviso's validity following the Tribunal's adjudication.Amendment refused; writ petition dismissed without prejudice; challenge to the proviso to section 234C(1) kept open and may be raised after the Income-tax Appellate Tribunal's decision; petitioner retains remedy under section 260A if adverse decision follows.Final Conclusion: The writ petition is dismissed without prejudice for want of maintainability insofar as it seeks to challenge the order of the Commissioner of Income-tax (Appeals); the constitutional challenge to the proviso to section 234C(1) is left open for consideration after the Income-tax Appellate Tribunal decides the pending appeal, with the petitioner remaining free to pursue further statutory remedies including under section 260A. The High Court of Rajasthan dismissed the writ petition seeking to challenge the order of the Commissioner of Income-tax (Appeals) as it would bypass the statutory remedy of appeal before the Income-tax Appellate Tribunal. The petitioner can challenge the validity of the proviso to section 234C(1) of the Income-tax Act after the decision of the Appellate Tribunal. The writ petition was dismissed without prejudice to the petitioner's rights to challenge the provision later.