Law: Income Tax Act, 1961

Section: 143,253

Income-tax----Assessment---Writ---Alternate remedy---Sample scrutiny under S.143(3)--Assessee having alternate remedy by way of appeal---Writ petition could not be entertained----Indian Income Tax Act, 1961, Ss. 143 & 253---Constitution of India, Art. 226. Held, dismissing the writ petition, that the writ petitioner had an alternative remedy to prefer an appeal to the -Appellate Tribunal under section 253 of the Income Tax Act, 1961. Hence, the writ petition could not be entertained. Navnit Lal C.. Javeri v. K. K. Sen, A.A. C. of I. T. (1965) 56 ITR 198 (SC); Raza Textiles Ltd. v. ITO (1973) 87 ITR 539 (SC) and Varghese (K.P.) v. ITO (1981) 131 ITR 597 (SC) ref. JUDGMENT This is a writ application challenging a demand notice, dated October 13, 1997, issued by respondent No. 5. The grievance of the writ petitioners is that petitioner - No. 1 furnished its return of income for preceding assessment year 1994-95 showing a taxable income of Rs.82,980 and the same was assessed under section 143(1)(a) of the Income-tax Act on a taxable income of Rs.82,980. In the assessment year 1995-96, the assessee furnished a return of income showing a total income of Rs.8,99,310, which is higher by more than 30 percent. of the assessed income of the preceding year. The assessee, petitioner No. 1, paid all the taxes on this returned income. Accordingly, petitioner No. l has satisfied all the conditions set out in the said circular issued by the Central Board of Direct Taxes and, therefore, the Assessing Officer is obliged under the law to follow the said instruction and is not under any competent jurisdiction to make a sample scrutiny under section 143(3), disregarding the said circular. All the conditions precedent to come under those category of assessees whose assessment for the year 19956 is to be made as per return submitted and whose returns of income are being exempted by the said circular from sample scrutiny under section 143(3) of the Income-tax Act, are being satisfied by petitioner No. 1. The petitioners reasonably expected that the assessment of the petitioners firm should be completed in terms of the said circulars and/or guidelines for the assessment year 1995-96…

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