BAGARIA TRADE IMPEX vs. INCOME TAX OFFICE

CW/19358/2023HC RajasthanRJHC01091973202316 February 2024Bench: MANINDRA MOHAN SHRIVASTAVA,MUNNURI LAXMAN2 pages

AI SummaryRemanded

What did the High Court hold?

The High Court, exercising its discretionary jurisdiction, decided not to keep the writ petition pending. Instead, it disposed of the petition with a specific direction to the respondent Income Tax Office. The respondent was directed to decide the pending appeals concerning the petitioner's assessments within an outer limit of three months from the date of receiving a copy of the order. The Court's reasoning was based on the peculiar circumstances of the case, specifically the prolonged pendency of the appeals (since 2016 and 2019) and the fact that recoveries had already been made. The principle derived is that in cases of inordinate delay in the disposal of appeals, even where alternative remedies exist, a writ court may intervene to direct expeditious disposal, especially when recoveries have already been effected.

What were the facts?

The petitioner, Bagaria Trade Impex, through its partner Shri Gobind Ram Bagaria, filed a writ petition challenging recovery made in relation to demands under various assessments. These assessments are currently under appeal. The appeals have been pending since 2016 and 2019, and recoveries were made a considerable time ago. The petitioner's counsel urged several grounds in the petition. The High Court considered the peculiar circumstances, including the long pendency of the appeals and the prior recovery of dues.

What were the issues?

1. Whether the High Court should entertain a writ petition challenging recovery when appeals against the underlying demands are pending before the appellate authorities, and if so, under what circumstances? (Mixed question of law and fact, concerning the principles of alternative remedies and extraordinary jurisdiction). Assessee's Contention: The petitioner, through its counsel, urged several grounds in the writ petition, implying a challenge to the recovery process itself, likely on grounds of procedural impropriety or undue hardship given the pending appeals. Revenue's Contention: The judgment does not record any specific contentions made by the respondent Income Tax Office.

AI-generated summary — verify with the full judgment below

[2024:RJ-JD:8183-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR D.B. Civil Writ Petition No. 19358/2023 Bagaria Trade Impex, Near State Bank Of India, Churu 331001, Rajasthan, India Through Its Partner Shri Gobind Ram Bagaria S/o Late Shri Bajarang Lal Bagaria, Aged 63 Years, R/o Bholaram Bagla Marg, Near Subhash Chowk, Churu, Rajasthan- 331001. ----Petitioner Versus Income Tax Office, Ward 1, Jhunjhunu, Behind Collectrate, Mandawa Road, Jhunjhunu, Rajasthan- 333001. ----Respondent For Petitioner(s) : Mr. Mahandra Gargiya through VC Mr. Jaideep Singh Saluja For Respondent(s) : - HON'BLE THE CHIEF JUSTICE MR. MANINDRA MOHAN SHRIVASTAVA HON'BLE MR. JUSTICE MUNNURI LAXMAN Order 16/02/2024 Heard. The challenge is made to recovery made from the petitioner in the matter of demand under various assessments which are in appeal. Though number of grounds have been urged by learned counsel for the petitioner in the present case, taking into consideration the peculiar circumstances of the present case that the appeals are pending since 2016 and 2019 and recoveries have been made long back, instead of keeping this petition pending, in exercise of our discretionary jurisdiction, we are inclined to dispose off this petition with a direction to the respondent to decide the pending appeals within an outer limit of three months from the date of receipt of copy of this order.

[2024:RJ-JD:8183-DB] (2 of 2) [CW-19358/2023] The writ petition is disposed off accordingly. (MUNNURI LAXMAN),J (MANINDRA MOHAN SHRIVASTAVA),CJ 7-divyaP/-

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