1968 (3) TMI 6 - HC - Income Tax

Income Tax Authorities - Jurisdiction of HC - territorial jurisdiction - exercise of discretion

Summary

Issues:
Jurisdiction of the court to hear the writ petition regarding compliance with orders of the Income-tax Appellate Tribunal, Calcutta Bench.

Analysis:
The writ petition sought a mandamus directing compliance with orders of the Income-tax Appellate Tribunal, Calcutta Bench. The preliminary objection raised was regarding the competency of the court to hear the proceedings, as the cause of action arose outside the court's jurisdiction. The petitioner contended that Section 5(8) of the Indian Income-tax Act empowered litigants to seek relief from the Central Board of Revenue. However, the court held that this provision did not confer appellate power on the Board over judicial or quasi-judicial orders. The petitioner also argued that the money realized by the authorities should be refunded by the Union of India, giving the court jurisdiction. Nevertheless, the court found this argument tenuous as the officers involved were outside its jurisdiction.

The court considered a previous unreported judgment of a Division Bench which supported the respondents' objection. Even if the earlier case was distinguishable or incorrectly decided, the court exercised discretion and declined to delve into the controversy. Instead, the petitioner was advised to seek relief from the appropriate High Court having jurisdiction over the Income-tax Appellate Tribunal and the concerned officers. The court emphasized that the Calcultta High Court had jurisdiction over the matter, unlike the present court.

In conclusion, the court dismissed the writ petition due to lack of jurisdiction, without delving into the merits of the controversy. The court highlighted that discretion in such matters must be based on the specific facts and circumstances of each case. The decision was made without imposing any costs on the petitioner, and the petition was ultimately dismissed.