2002 (2) TMI 68 - HC - Income Tax

Court denies petition to quash benefit denial under Income-tax Act

The High Court dismissed the petitioners' request to quash certificates denying benefits under section 89(1) of the Income-tax Act. The court ruled that ... Relief under section 89(1) of the Income-tax Act, 1961 - statutory remedy by application to the Assessing Officer - Assessing Officer's adjudication on entitlement under section 89(1) - writ jurisdiction and factual adjudicationRelief under section 89(1) of the Income-tax Act, 1961 - statutory remedy by application to the Assessing Officer - Assessing Officer's adjudication on entitlement under section 89(1) - writ jurisdiction and factual adjudication - Maintainability of writ challenging certificates issued by the employer declining to grant benefit of section 89(1) and appropriate remedy for claim of relief under section 89(1). - HELD THAT: - The court held that section 89(1) itself provides the statutory remedy for an assessee to claim relief by making an application to the Assessing Officer, who is entrusted with examining entitlement and granting relief if satisfied. The High Court declined to undertake factual adjudication on whether each petitioner was entitled to the relief under section 89(1), as such determination is by statute entrusted to the Assessing Officer. Consequently, the writ challenging the certificates issued by the bank refusing the benefit was not entertained on merits. The petitioners were granted liberty to present detailed applications to their respective Assessing Officers setting out particulars and supporting proof, and the Assessing Officers were directed to dispose of such applications expeditiously after affording opportunity to the petitioners.Writ dismissed; petitioners permitted to apply to Assessing Officers under section 89(1) and Assessing Officers directed to decide expeditiously after hearing.Final Conclusion: The writ petition was dismissed on the ground that the statutory remedy under section 89(1) is to apply to the Assessing Officer; petitioners are granted liberty to make applications to their Assessing Officers with necessary particulars and proof, and the Assessing Officers are directed to dispose of such applications expeditiously after affording opportunity. The petitioners, ex-employees of State Bank of Indore, sought quashing of certificates denying them benefits under section 89(1) of the Income-tax Act. The High Court declined relief, stating that petitioners should apply to the Assessing Officer for such benefits as per section 89(1) of the Act. The Assessing Officer will determine eligibility based on the application and evidence provided.