2021 (4) TMI 1378

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....leging that the impugned assessment order completely flouts the judgment of the Hon'ble Supreme Court in Mavilayi Service Co-operative Bank Ltd. and others v Commissioner of Income Tax, Calicut and another [2021(1) KLT 485]. It was contended that the procedure adopted and the conclusions arrived at in the assessment order are in direct conflict with the Supreme Court judgment mentioned above. It was submitted that the petitioner need not be relegated to the normal remedy of a statutory appeal, since, the impugned assessment order directly conflicts with the Supreme Court judgment 2. Adv. A. Kumar, the learned counsel for the petitioner, in support of the challenge against the assessment order, pointed out that the various conditions wh....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....at "providing credit facilities to its members does not necessarily mean agricultural credit alone" and further that "once it is clear that the cooperative society in question is providing credit facilities to its members. The fact that it is providing credit facility to non-members does not disentitle the society in question from availing of the deduction." the assessing officer disallowed deductions claimed on reasons contrary to the Supreme Court Judgment. The learned counsel for the petitioner invited my attention to the decision in Union of India and others v Kamalakshi Finance Corporation Ltd [(1992) 1 SCC 443] and emphasised that the order of a higher authority is binding on the lower authority and disregard of earlier orders of the ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....when the litigant has a legal right but no appropriate machinery to redress his grievance. Of course, if the exigencies of a case demand that the ordinary method of appeal will render injustice or be inadequate, the remedy of Article 226 can be invoked. Refraining from exercising the jurisdiction under Article 226 is more as a measure of policy, convenience, and discretion rather than a rule of law. In cases where orders of assessing authorities under taxing statutes are merely wrong or are contrary to established laws, generally, this Court keeps its hands off and relegates the parties to the statutory remedies. The situation would be different when an order is passed wholly without jurisdiction or in violation of the principles of natural....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... appreciation of facts and the analysis of the nature of objections raised or explanations provided, it is ideal to relegate the parties to the statutory remedies. The Income Tax Act, no doubt provides a complete machinery for assessment of tax and for relief in respect of improper or erroneous orders made by the taxing authorities as held in Sibram Poddar v. Income Tax Officer, Central circle II and Another (AIR 1964 SC 1095). 9. There is no quarrel with regard to the proposition laid down in Union of India and others v Kamalakshi Finance Corporation Ltd. [(1992) 1 SCC 443]. Judicial discipline demands that all authorities follow orders of the superior authority. When the order of the Supreme Court clearly specifies and declares a law, a....