1990 (4) TMI 40 - HC - Income Tax

Summary

Issues:
1. Challenge to non-granting of "No Objection Certificate" by departmental authorities.
2. Requirement to deduct tax under section 192 of the Income-tax Act, 1961.
3. Treatment of petitioner as an agent under section 163(1)(c) of the Income-tax Act.
4. Jurisdiction of High Court under article 226 of the Constitution in taxation matters.

Analysis:
The petitioner challenged the non-granting of the "No Objection Certificate" necessary for remitting payment to foreign technicians. An interim order was passed requiring a bank guarantee, which was furnished, and the certificate was subsequently issued. The technicians were paid without tax deduction. Orders under section 197(1) of the Income-tax Act were received later, but no action was taken post the interim order. The petitioner was treated as an agent under section 163(1)(c), indicating potential tax recovery through the petitioner. The court noted that the Department's actions were hypothetical, and the petitioner had appeal remedies under the Income-tax Act.

The High Court highlighted self-imposed limitations under article 226, emphasizing it does not act as an appellate court for tax matters. Quoting past Supreme Court decisions, the High Court reiterated that the Income-tax Act provides a complete mechanism for tax assessment and relief. The court dismissed the petition as infructuous, emphasizing that the Act provides avenues to challenge assessments, and the High Court's writ jurisdiction is limited, particularly in taxation matters. The judgment underscored that the High Court's intervention is exceptional when alternative remedies are available under the Act, and dismissed the petition without costs.