GENERAL INSURANCE EMPLOYEES vs. COMMISSIONER OF INCOME TAX (APPEALS)

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WP/36175/2012HC KarnatakaKAHC01039078201205 November 2012Bench: H.G.RAMESH2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court declined to entertain the writ petition. The Court noted that the petitioner's counsel did not dispute that a second appeal would lie against the order of the Commissioner of Income Tax (Appeals) to the Income Tax Appellate Tribunal under the provisions of the Income Tax Act, 1961. Given the availability of this statutory remedy, the Court chose not to exercise its writ jurisdiction. The petitioner was granted liberty to avail of the statutory appeal process in accordance with the law. The core reasoning is that when a specific statutory alternative remedy exists, the High Court, in its writ jurisdiction, generally refrains from interfering, preferring the assessee to exhaust the prescribed legal channels. No specific issue regarding the merits of the assessment or the orders under challenge was decided.

What were the facts?

The petitioner, General Insurance Employees’ Co-operative Credit Society Ltd., filed a writ petition before the High Court of Karnataka. The petition challenged an assessment order dated 31.10.2011 (Annexure-A) and a demand notice dated 31.10.2011 (Annexure-B), both issued by the first respondent, the Commissioner of Income Tax (Appeals). The petitioner also challenged an order dated 08.06.2012 passed by the first respondent (Annexure-F). The writ petition sought to quash these orders and notices. The assessment year(s) are not explicitly stated. The procedural history involves the issuance of the assessment order and demand notice, followed by an order from the Commissioner of Income Tax (Appeals).

What were the issues?

1. Whether the High Court should entertain a writ petition challenging an order of the Commissioner of Income Tax (Appeals) when a statutory remedy of appeal to the Income Tax Appellate Tribunal is available under the Income Tax Act, 1961? Assessee's Contention: The petitioner, by filing the writ petition, implicitly sought intervention from the High Court. The specific arguments made by the petitioner's counsel are not detailed beyond their participation in the writ proceedings. Revenue's Contention: The revenue, represented by the Commissioner of Income Tax (Appeals) and the Deputy Commissioner of Income Tax, did not explicitly record arguments in the judgment. However, their presence as respondents indicates their opposition to the writ petition.

Which sections of the Income-tax Act were involved?

Income Tax Act, 1961

AI-generated summary — verify with the full judgment below

W.P. No.36175/2012 -1- IN THE HIGH COURT OF KARNATAKA AT BANGALORE

DATED THIS THE 5TH DAY OF NOVEMBER 2012

BEFORE

THE HON'BLE MR. JUSTICE H. G. RAMESH

WRIT PETITION No.36175 OF 2012 (T-IT)

BETWEEN:

GENERAL INSURANCE EMPLOYEES’ CO-OPERATIVE CREDIT SOCIETY LTD. HEAD OFFICE, ‘KRISHNA’ AJJARKAD, COURT BACK ROAD UDUPI, UDUPI DISTRICT REPRESENTED BY ITS SECRETARY MR. PRABHAKAR K.S.

... PETITIONER

(BY SRI MAHESH R UPPIN, ADVOCATE)

AND:

1.

COMMISSIONER OF INCOME TAX (APPEALS)

MYSORE – 570015

2.

DEPUTY COMMISSIONER OF INCOME TAX

UDUPI DISTRICT UDUPI-576101

… RESPONDENTS

(BY SRI M.V. SESHACHALA, ADVOCATES FOR R1 & R2)

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ASSESSMENT ORDER DTD. 31.10.2011 MARKED AS ANN-A AND THE DEMAND NOTICE DTD. 31.10.2011 ISSUED BY R1 MARKED AS ANN-B AND THE ORDER DTD.8.6.2012 PASSED BY R1 MARKED AS ANN-F BY ISSUING A WRIT IN THE NATURE OF CERTIORARY.

THIS WRIT PETITION COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP, THIS DAY, THE COURT MADE THE FOLLOWING:

W.P. No.36175/2012 -2- O R D E R

H.G.RAMESH, J. (Oral):

This writ petition is directed against the order of the first appellate authority dtd. 8.6.2012, a copy of which is produced as Annexure-F. Learned Counsel for the petitioner does not dispute that a second appeal would lie against the aforesaid order to the Income Tax Appellate Tribunal under the provisions of the Income Tax Act, 1961. In view of the statutory remedy of appeal available to the petitioner, I decline to entertain this writ petition with liberty to the petitioner to avail of the statutory remedy of appeal in accordance with law. Petition dismissed.

Sd/-

JUDGE BNS/ata.

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