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2014 (5) TMI 1223 - ALLAHABAD HIGH COURTDefault u/s 201(1) and 201(1A) - Alternate remedy - as argued 15% trade discount allowed by the petitioner to the advertising agencies was not payment of commission within the meaning of section 194H therefore, the authorities had no jurisdiction to initiate proceedings under sections 201(1)/201(1A) - HELD THAT:- We are not inclined to entertain this petition as the petitioner has a statutory alternative remedy of filing an appeal before the CIT and a further appeal to the Income Tax Appellate Tribunal, if required. In the judgment rendered in Jagran Prakashan [2012 (5) TMI 488 - ALLAHABAD HIGH COURT] the notice issued to the petitioner was in respect of section 194H alone. In the present case, as noticed above, apart from section 194H, the notice was issued under various other provisions of the Act. The impugned order elaborately deals with each of the provisions and has found that the assessee has failed to deduct TDS under each of these heads. As various factual aspects relating to the imposition of duty under these sections have been raised in this petition, we do not consider it appropriate to entertain this petition as the petitioner has available the statutory alternative remedies. Though it has been contended by petitioners that the principles of natural justice have been violated as adequate opportunity has not been given to the petitioner, but we find from the records that a notice had been issued to the petitioner to which he had submitted a reply. It cannot be urged that there has been a breach of the principles of natural justice. The Supreme Court in Commissioner of Income Tax & Ors. Vs. Chhabil Dass Agarwal [2013 (8) TMI 458 - SUPREME COURT] has held that as the Income Tax Act provides for a complete machinery against orders passed by the Revenue authorities, an assessee should not ordinarily be permitted to abandon that machinery and invoke jurisdiction of the High Court under Article 226. In the instant case, the Act provides complete machinery for the assessment/re-assessment of tax, imposition of penalty and for obtaining relief in respect of any improper orders passed by the Revenue Authorities, and the assessee could not be permitted to abandon that machinery and to invoke the jurisdiction of the 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 (5) TMI 213 - SUPREME COURT] 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.
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