Law: Income Tax Act, 1961

Section: 143,226

(a) Income tax--Writ Other remedy open Writ petition challenging jurisdiction of Income tax Officer Rule nisi issued Question of law on new section of Income tax Act raised Preliminary objection that petitioner had invoked alternative remedy, rejected. The existence of another remedy does not affect the jurisdiction of the Court to issue a writ under Art. 226 of the (Indian) Constitution but the existence of an alternate adequate legal remedy is a thing to be taken into consideration in the matter of granting writs. Where the petitioner challenges the jurisdiction of a statutory authority and seeks a writ in the nature of prohibition the Court should not refuse to exercise discretion in favour of the petitioner though there may be an alternative remedy. Once a petitioner under Art.226 (Indian Constitution) is entertained and heard on merits the same should not be dismissed on the ground of the existence of an alternative remedy. Case law discussed. Where the petitioner challenged the jurisdiction of the I. T.O. to vary the return submitted and make an order of assessment and a Rule nisi had been issued as a question of law arising on a new section of the Income tax Act was being considered by the Court as a matter of first impression and a large number of Rules were pending in High Court on the same point. It was held, that in order to shorten the litigation and to avoid multiplicity of proceedings, the preliminary objection, that the rule should be discharged on the ground that alternative remedy had been invoked by the petitioner, could not be accepted. (b) Income tax Loss Expression 'the income or loss returned' Refers to total income or loss as shown in return of assessee after computation and not to amounts shown under different heads of income. (1976) 105 I T R 864; (1974) 9Q I T R 1 (Bom.); 1973 Tax L R 2425; (1973) 89 I T R 281 (Cal.); A I R 1971 S C 33; A I R 1969 S C 556; A I R 1968 S C 13; A I R 1968 S C 153; A I R 1965 S C 1321; AIR 1962 S C 1694; A I R 1961 S C 372; A I R 1961 S C 1506; A I R 1957 S C 882; A I R 1957 Cal. 702 and A 1 R 1955 S C 661 ref. ORDER New India Investment Corporation Limited, the petitioner, was at the material time and…

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