9911796707
TMI Blog2022 (12) TMI 1023X X X X Extracts X X X X X X X X Extracts X X X X ..... Buildings. The petitioner concerned is an Assessee under the Income Tax Act, 1961 ["the Income Tax Act"]. The petitioner is aggrieved and has challenged notices/orders dated 5th April, 2016, and 28th April 2016 issued by respondent no. 3 to the respondents no. 4 to 9, directing the latter to pay an amount of rupees 32,32,100/- (Thirty-two lac, Thirty-two thousand and One hundred) payable by their account holder namely M/S Construction Engineers Srinagar (the petitioner) . The petitioner, as is apparent from reading of the writ petition and prayer clause, has not challenged any demand notice issued by the respondent no. 3 for payment of arrears of the Income Tax dues. 2. With a view to appreciate the controversy in proper perspective, it i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , or show cause notice issued by respondent no. 3 on 22nd March, 2016. Since the demand was not contested by the petitioner, respondent no. 3 took the intimation issued on 3rd March, 2016, as a formal demand for deposit of Income Tax dues under Section 200A, and proceeded to recover the outstanding amount under section 226(3) of the Income Tax Act. It is in the exercise of powers vested in the Assessing Officer/ Tax Recovery Officer under Section 226 (3) a notice was issued to the J&K Bank, who holds money for and on account of the petitioner-Assessee. The petitioner is aggrieved of the notices issued by the Income Tax Officer (TDS) Srinagar, to the banker of the petitioner for deposit of outstanding liability against the petitioner and is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lds money for and on account of the Assessee, to make the deposit of the outstanding liability standing against the petitioner. 5. The impugned notices issued by the respondent No. 3 to the Jammu and Kashmir Bank, have been assailed by the petitioner primarily on the ground that no recovery proceedings in terms of Section 226 can be initiated unless the petitioner is declared as "Assessee in default‟ under Section 201 of the Income Tax Act. We have given our thoughtful consideration to the argument of Mr. R.A. Jan, learned senior counsel, however, we find little substance in it. In the instant case Section 201 is prima facie not attracted. It is a case where during processing the Income Tax returns of the petitioner, the respondents ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tway approach this Court by invoking its extraordinary writ jurisdiction under Article 226 of the constitution of India. The notices issued by the respondent, no. 3 under Section 226(3) of the Income Tax Act, are dependent on the sustainability of the demand. 7. Needless to say that when a statute provides a mechanism for redressal of grievances, the person aggrieved must go through the mechanism so provided. He cannot be permitted to rush to invoke the extraordinary writ jurisdiction of the High Court under Article 266 of the Constitution of India, moreso when the statutory mechanism itself provides for filing of statutory appeals and revisions. The legal position in this regard is well settled and does not call for any reiteration. Hon&# ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e High Court under Article 226 of the Constitution when he had adequate remedy open to him by an appeal to the Commissioner of Income Tax (Appeals). The remedy under the statute, however, must be effective and not a mere formality with no substantial relief. In Ram and Shyam Co. vs. State of Haryana, (1985) 3 SCC 267 this Court has noticed that if an appeal is from "Caesar to Caesar's wife" the existence of alternative remedy would be a mirage and an exercise in futility." 8. That apart, we find this petition which is directed against the notices issued by respondent no. 3 under Section 266 (3) of Income Tax Act, not maintainable in the absence of challenge to the intimation of demand issued under Sub-Section 1 of Section 200A. There is in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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