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2016 (2) TMI 519 - PUNJAB AND HARYANA HIGH COURT

2016 (2) TMI 519 - PUNJAB AND HARYANA HIGH COURT - TMI - Re-computation of the book profit for the purpose of Minimum Alternate Tax (MAT) under Section 115JB - increasing the book profit by making an addition of depreciation in the profit and loss account - Held that:- Relegating the petitioner to avail alternative remedy under the Act, we are not inclined to entertain this petition in writ jurisdiction under Article 226 of the Constitution of India. Consequently, the petition stands dismissed - .....

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e Income Tax Act, 1961 (in short, the Act ) by increasing the book profit by making an addition of amount of ₹ 253.87 crores as depreciation in the profit and loss account. 2. A few facts relevant for the decision of the controversy involved as narrated in the petition may be noticed. The petitioner company - Cairn India Limited is a resident company incorporated under the Erstwhile Companies Act, 1956 on 21.8.2006. It is listed on Bombay and National Stock Exchange of India. It is engaged .....

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oil exploration blocks in India. The petitioner company entered into production sharing contracts (PSCs) in respect of certain blocks/oil and gas fields. In the revised return filed by the petitioner company on 26.3.2013, it declared total income of ₹ 417,20,94,924/- as per the provisions of the Act and adjusted book profit of ₹ 3505,76,69,697/- under section 115JB of the Act. The return was processed under section 143(1) of the Act. The case was selected for scrutiny under the Act. .....

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The Assessing Officer in the draft assessment order dated 20.2.2015, Annexure P.2 in addition to accepting the adjustments made by the TPO also proposed an adjustment of ₹ 1,89,67,74,272/- to total income computed under the provisions of the Act. Further, an amount of ₹ 2,69,22,99,920/- was adjusted to book profits under section 115JB of the Act. The petitioner is only challenging action of respondent No.1 in proposing to increase book profit by ₹ 253,87,76,138/- as a result o .....

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t order. Hence the instant writ petition by the petitioner. 3. We have heard learned counsel for the petitioner. 4. A perusal of the averments made in the petition shows that before passing the assessment order, a reference was made to the TPO by the Assessing Officer for determining ALP under section 92CA(3) of the Act in respect of international transactions undertaken by the petitioner during the assessment year in question. Section 144C of the Act lays down the procedure to be followed by th .....

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n to adjustments proposed by the TPO, the Assessing Officer also proposed adjustment of further amount to the total income computed under the Act. The assessee filed objections before the DRP i.e. respondent No.2 against the draft assessment order. The DRP upheld the order passed by the Assessing Officer. It is well recognized that when a right or liability is created by a statute which gives a special remedy for enforcing it, the remedy provided by that statute only must be availed of. In the p .....

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ition under Article 226 of the Constitution should be entertained in a matter involving challenge to the order of the assessment passed by the competent authority under the Central Sales Tax Act, 1956 and corresponding law enacted by the State legislature and answered the same in negative by making the following observations: "Under the scheme of the Act, there is a hierarchy of authorities before which the petitioners can get adequate redress against the wrongful acts complained of. The pe .....

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impugned orders of assessment can only be challenged by the mode prescribed by the Act and not by a petition under Article 226 of the Constitution. It is now well recognised that where a right or liability is created by a statute which gives a special remedy for enforcing it, the remedy provided by that statute only must be availed of. This rule was stated with great clarity by Willes, J. in Wolverhampton New Waterworks Co. v. Hawkesford in the following passage: "There are three classes of .....

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this passage was approved by the House of Lords in Neville v. London Express Newspapers Ltd. and has been reaffirmed by the Privy Council in Attorney-General of Trinidad and Tobago v. Gordon Grant & Co. Ltd. and Secretary of State v. Mask & Co. It has also been held to be equally applicable to enforcement of rights, and has been followed by this Court throughout. The High Court was therefore justified in dismissing the writ petitions in limine." 6. Following the above judgment, the .....

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injury and the vindication of public justice require it that recourse may be had to Article 226 of the Constitution. But then the Court must have good and sufficient reason to bypass the alternative remedy provided by statute. Surely matters involving the revenue where statutory remedies are available are not such matters. We can also take judicial notice of the fact that the vast majority of the petitions under Article 226 of the Constitution are filed solely for the purpose of obtaining interi .....

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ry remedies:- i) where the writ petition seeks enforcement of any of the fundamental rights; ii) where there is failure of principles of natural justice; or iii) where the orders or proceedings are wholly without jurisdiction or the vires of an Act is challenged. 7. We are not inclined to entertain this petition against the assessment order as it does not fulfil any of the broad outlines noticed herein above..... . 8. Learned counsel had sought support from pronouncements in State of Andhra Prad .....

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