Statutory refund remedy and prejudicial order test limit recourse to High Court reference and specific relief

A Commissioner's refusal to interfere with a refund rejection was not an order "otherwise prejudicial" to the assessee where the refund had already been refused by the Income Tax Officer and the later order merely left that position unchanged; on that basis, no reference to the High Court could be demanded under Section 66(2). Relief under Section 45 of the Specific Relief Act was also unavailable because a specific statutory appeal existed against refusal of refund, and the assessee could not bypass that remedy by invoking an extraordinary civil remedy. The application was therefore not maintainable.

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Issues: Whether the Commissioner's order refusing to interfere with the refund rejection was an order "otherwise prejudicial" to the assessee so as to permit a reference to the High Court, and whether relief under the Specific Relief Act was available despite the statutory appellate remedy.

Analysis: The refusal of refund by the Income Tax Officer had already prejudiced the assessee, and the Commissioner's order under Section 33 merely left that position unchanged; it did not itself alter the assessee's rights to his prejudice in the sense required by Section 66(2). The High Court therefore held that no reference could be demanded on that basis. As to the alternative prayer under Section 45 of the Specific Relief Act, the existence of a specific statutory appeal against refusal of refund barred recourse to that extraordinary remedy. Having failed to pursue the remedy provided by the tax statute, the assessee could not invoke Section 45.

Conclusion: The application was not maintainable and the petition failed.

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