Law: Income Tax Act, 1922

Section: 65

(a) Jurisdiction-Civil Court-Exclusion of-Whether could be inferred from mere provision in statute of an alternative machinery for determination of rights or liabilities created by the statute-Bar created by either S. 67, Income-tax Act, (XI of 1922) or S. 65, Bengal Agricultural Income-tax Act (IV of 1944)-Not absolute or unqualified. Mere provision in a statute of an alternative machinery for the determination of the rights or liabilities created by the statute is not per se sufficient to lead to the inference that the jurisdiction of the Civil Courts in respect of those rights and liabilities is impliedly barred. Not only is the mere presence of an alternative machinery not by itself sufficient to oust the jurisdiction of the Civil Courts, but even the existence of express provision in that behalf coupled with the alternative machinery may not always have the effect of completely ousting the said jurisdiction in all cases e.g., in cases where the Statutory Tribunal or authority set up to give effect to the said alternative machinery acts manifestly in excess of the jurisdiction given to it by the statute or purports to do that which is expressly prohibited by the statute itself or is clearly outside the scope of the statute. The bar created by either section 67 of the Income-tax Act, 1922 or section 65 of the Bengal Agricultural Income-tax Act, 1944, which are in identical terms, is not absolute or unqualified. It will be operative only when the subject-matter of the suit is also a matter which falls strictly within the competence of the taxing authorities to determine, and that too only if no question of fraud or abuse of the machinery provided by the statute is involved. It was argued that where the statute creates a liability not existing at common law, and gives also a particular remedy for enforcing it, the aggrieved party in such a case must adopt the form of remedy given by the statute. The liability to pay agricultural income-tax, it was said, is a totally new liability created by the Bengal Agricultural Income-tax, Act, 1944, which has also made elaborate provisions for enforcing the liability created by it and, therefore, it was urged, that the…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492