Law: Income Tax Act, 1922

Section: 67, 64(3)

Income-tax Act (XI of 1922)------Ss. 67 & 64(3) and Civil Proce dure Code (v of 1908), S. 9-Income-lax matter-Jurisdiction of civil Courts-Statute creating rights and liabilities as well as providing machinery for adjudication of such rights-Resort must be had to forum provided by statute and not to civil Courts Person resident of D. I. Khan Division assessed to income-tax by I. T. O., Sargodha Division-Civil suit for declaration that order of assessment made by Income-tax Officer of Sargodha Division, illegal-Held, barred by S. 67 of Act XI of 1922, inasmuch as grievance could be adjudicated in appeal, under S. 64(3) of Act, by Income-tax Commissioner-Civil Court not competent to usurp that jurisdiction. A civil suit against the Government was instituted by an assessee against the order of assessment made by an Income tax Officer. The suit was for declaration that the order of assessment was illegal because the assessee was resident of I Division whereas the assessment was made by the Income-tax Officer, S Division. Held : When a statute creates rights and liabilities and also provides the machinery for the adjudication of those rights, then resort must be made to the forum pro vided by the Act and not to the civil Courts whose jurisdic tion in such matters would be barred. It is clear that the bar of section 67 of the Income-tax Act would b.- applicable in all cases in which the orders of the Income-tax authorities could be challenged in appeal under the provisions of the Act. Subsection (3) of section 61 of the Act shows that the grievance of the respondent, that he was the resident of 1 and therefore the Income-tax Officer of S could not have assessed him to income-tax liability, was required to be adjudi cated upon in appeal before the Income-tax Commissioner, and therefore, the civil Court was not competent to usurp that jurisdiction. The Punjab Province v. Federation of Pakistan P L D 1956 F C 72 distinguished. Raleigh Investment Co. Ltd. v. The Governor-General-in- Council P L D 1947 P C 19 ref. Date of hearing : 5th May 1971.   JUDGMENT This revision application under section 115, C. P. C. is directed against the order of the Senior Civil…