Law:

Section:

Article 226 of the Constitution of India - Writ - Maintainability of - In consequence of an audit report, Commissioner proposed to revise assessment order passed by WTO on ground that income-tax and Wealth-tax liabilities were wrongly allowed as they were outstanding for more than 12 months - He accordingly issued show-cause notice to assessee under section 25(2) - Whether said matter which was at stage of show-cause notice, could not, on facts, be entertained simply because same could be decided under article 226 by invoking special jurisdiction of High Court - Held, yes FACTS The income-tax liability for the assessment years 1975-76 to 1981-82 and the wealth-tax liability for the assessment years 1979-80 to 1981-82 were allowed by the WTO as deduction while computing the net wealth of the assessee, on the basis of the assessee's claim of self-assessment taxes paid. The Commissioner was of the opinion that these liabilities were those considered as outstanding for more than 12 months and, therefore, not allowable in view of the provisions of section 2(m)( iii). He accordingly, issued show-cause notice to the assessee as to why the said assessment order be not revised under section 25(2). The said notice further requested the parties to appear either in person or through their authorised representative. On writ: HELD The assessee's plea that the authorities concerned were bound by the audit report, that the audit report had given opinion which went contra to the Supreme Court's decision in the case of CWT v. J.K. Cotton Mfrs. Ltd. [1984] 146 ITR 552/ 16 Taxman 18 and that as such no useful purpose would be served by appearing before the Commissioner in pursuance of the said notice, was hardly a reason which could be entertained for the purpose of admitting these civil applications. Certainly, if the section and the Supreme Court decision were brought to the notice of the Commissioner, he would look into the matter and if the principles, laid down in that decision were acceptable, the Commissioner who would be hearing the parties concerned, would definitely follow the decision of the Supreme Court. Simply because the matter could be decided under article 226 by…

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