1960 (2) TMI 62

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....etition under article 226 of the Constitution to quash exhibit P-2 dated March 2, 1959, by which the Income- tax Officer refused to treat the petitioner, an assessee under the Indian Income-tax Act, 1922, "as not being in default as long as" the appeal preferred by him against the assessment "is undisposed of", by virtue of section 45 of the Act. The petitioner submitted a return of income for abo....

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....iculties and that he has a fair chance of success in the appeal preferred by him, expressing his willingness, for a sum of over seven thousand rupees due to him under some forest contract from Government, to be set off against his liability, By exhibit P-2 the Income-tax Officer has, in effect, rejected his application, but in these terms: "In the circumstances stated by you, you are allo....

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....; If so, the counter-affidavit at least should have indicated it. Secondly, the expression "the circumstances stated" is so nebulous, that it can go well with any order that may be passed, and cannot by itself furnish an indication, as to the exercise of a discretionary power. The decided cases are clear, that the Income-tax Officer must exercise the discretion vested in him under section 45 of....

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....pondent, in these terms: "Quick realisation of tax may be an administrative expediency, but by itself if constitutes no ground for refusing a stay. While determining such an application, the authority exercising discretion should not act in the role of a mere tax-gatherer." The learned judge has also quoted the following observations of Harries, C.J., in an earlier case: "Once....