Petitioner's Challenge on Tax Assessment for Non-Compliance Dismissed

The High Court addressed the petitioner's challenge of being assessed as an assessee in default under the Income-tax Act for non-compliance with TDS provisions on stake money payments to horse owners. The Court emphasized the availability of the appeal remedy under the statute and dismissed the writ petitions, advising the petitioner to pursue the statutory appeal process instead of seeking relief directly through the Court.

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Issues:
1. Assessment of the petitioner as an assessee in default under Sections 201(1) & 201(1A) of the Income-tax Act, 1961.
2. Contention of the petitioner regarding the legality and jurisdiction of the orders passed by the Deputy Commissioner of Income-Tax.
3. Availability of the remedy of appeal under Section 246A (1) (ha) before the Commissioner (Appeals) and its impact on the maintainability of the writ petitions.

Analysis:

1. The High Court dealt with the issue of the petitioner being assessed as an assessee in default under Sections 201(1) & 201(1A) of the Income-tax Act, 1961 for non-compliance with TDS provisions on payments made as stake money to horse owners. The petitioner contended that stake money payments are not subject to TDS under Section 194B and that the respondents' action was illegal. The Court noted that the respondent had issued show-cause notices and considered the petitioner's responses before passing the impugned orders. The Court emphasized that the appellate authority should determine if the respondent exceeded its jurisdiction, indicating that the error alleged was not correctable under Article 226 of the Constitution of India. The Court advised the petitioner to pursue the remedy of appeal available under the Statute.

2. The Court addressed the petitioner's argument regarding the legality and jurisdiction of the orders passed by the Deputy Commissioner of Income-Tax. The petitioner contended that Section 194B was erroneously invoked against them and, therefore, the impugned orders were without jurisdiction. The Court highlighted that the statutory power was allegedly misapplied but not lacking. It emphasized that the error of jurisdiction was not a correctable error under Article 226 of the Constitution of India. The Court suggested that the petitioner should follow the appeal process under the Statute instead of invoking the Court's jurisdiction directly.

3. The Court discussed the availability of the remedy of appeal under Section 246A (1) (ha) before the Commissioner (Appeals) and its impact on the maintainability of the writ petitions. The respondents argued that the writ petitions were not maintainable as the statutory remedy of appeal was available. The Court noted that provisions under the Income-tax Act allowed for safeguarding the assessee's interests during the appeal process. It mentioned that if the assessing officer did not consider the petitioner's request for protection during the appeal, a writ petition could be an option for redressal. However, the Court found that such a stage had not been reached in this case and, therefore, dismissed the writ petitions at the admission stage, advising the petitioner to pursue the appeal remedy available under the statute.

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