2014 (5) TMI 1223

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.... been treated as an assessee in default in respect of a demand of Rs.38,78,72,323/- for the Financial Year 2011-12. A preliminary objection has been raised by learned counsel appearing for the Revenue that the petitioner has two statutory alternative remedies available. The first is an appeal under section 246A before the Commissioner of Income Tax and the second, thereafter, is an appeal before the Income Tax Appellate Tribunal under section 253. Learned Senior Counsel for the petitioner has, however, placed reliance upon a judgment of a Division Bench of this Court in Jagran Prakashan Ltd. Vs. Deputy Commissioner of Income Tax (TDS) (2012) 345 ITR 288 (All) and has contended that as the issues raised in this petition are covered by the ....

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.... the provisions and has found that the assessee has failed to deduct TDS under each of these heads. The total demand payable by the assessee has been computed as follows:- Head Short Charge u/s 201(1) Interest u/s 201(1A) Total Demand Commission/Trade Discount Rs.14,55,82,722/- Rs.3,49,39,853/- Rs.18,05,22,575/- Site Hiring Charges Rs.5,02,79,159/- Rs.1,20,66,998/- Rs.6,23,46,157/- Issue of Non-Convertible Debentures Rs.61,75,000/- Rs.14,82,000  Rs.76,57,000/- News Collection and Contribution Expenses Rs.53,89,329/- Rs.12,93,438/-  Rs.66,82,767/- Freight & Cartage Rs.4,02,249/- Rs.96,539/- Rs.4,98,788/- Carriage & Distribution Expenses Rs.44,07,205/- Rs.10,57,729/- Rs.54,64,934/- Communication Expenses....

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.... from the records that a notice had been issued to the petitioner to which he had submitted a reply. It cannot be urged that there has been a breach of the principles of natural justice. The Supreme Court in Commissioner of Income Tax & Ors. Vs. Chhabil Dass Agarwal (2014) 1 SCC 603 has held that as the Income Tax Act provides for a complete machinery against orders passed by the Revenue authorities, an assessee should not ordinarily be permitted to abandon that machinery and invoke jurisdiction of the High Court under Article 226. The relevant paragraphs are as follows:- "15. Thus, while it can be said that this Court has recognised some exceptions to the rule of alternative remedy i.e. where the statutory authority has not acted in acc....