2000 (4) TMI 12 - HC - Income Tax

Summary

Issues involved:
Challenging the validity of notices issued under section 35 of the Tamil Nadu Agricultural Income-tax Act, 1955 for the assessment year 1987-88.

Detailed Analysis:

1. Validity of Notices under Section 35 of the Act:
The petitioner filed writ petitions challenging two notices issued by the first respondent under section 35 of the Act for the assessment year 1987-88. The notices alleged an escape of income-tax and proposed additional tax levies based on certain calculations. The petitioner argued that the notices were irregular and illegal, as they were issued in an improper manner and without attaching the necessary return forms. The respondents, in their counter affidavit, defended the notices, stating that they were issued to rectify a shortfall in tax due to discrepancies in the reported production of rubber. The respondents contended that the petitioner should have first appealed to the appropriate appellate authority instead of directly approaching the court.

2. Availability of Statutory Remedy:
The respondents argued that the petitioner should have exhausted the statutory remedy available under the Act by appealing to the appellate authority before seeking writ jurisdiction. They emphasized that the petitioner's rush to the court bypassed the legal remedy provided under the statute. The counter affidavit highlighted that the petitioner had not shown that the statutory remedy was unavailable, and the respondents urged the court to dismiss the writ petitions on this basis.

3. Court's Decision and Dismissal of Writ Petitions:
After assessing the arguments and circumstances presented by both parties, the court concluded that the petitioner had not exhausted the statutory remedy of appealing to the appropriate authority. The court noted that the petitioner's approach to seek a writ without utilizing the available appeal provisions was improper. Emphasizing the importance of following the statutory appeal process, the court dismissed the writ petitions. The court directed the petitioner to pursue the statutory appeal remedy and subsequent revisional forum under the Act if aggrieved by the notices issued by the respondents.

In conclusion, the court dismissed the writ petitions, emphasizing the need for the petitioner to follow the statutory appeal process before seeking extraordinary constitutional remedies. The court highlighted the importance of exhausting available remedies under the Act and directed the petitioner to utilize the statutory appeal and revisional forums for addressing grievances related to the notices issued under section 35 of the Act for the assessment year 1987-88.