INCOME TAX ACT, 1961

Section 226

Writ - Maintainability - AO created new liability for assessee contrary to the directions issued by Tribunal. - Revenue pleading that assessee had an alternative efficacious remedy of preferring appeal before CIT(A)

AO in the order passed giving effect to direction given by tribunal created new liability for assessee contrary to the directions issued by Tribunal. Assessee challenged this by way of writ petition. Revenue's case was that there was no merit in writ application as assessee had an alternative efficacious remedy of preferring appeal before CIT(A).Held: It is true that when a statutory forum is created by law for redressal of grievance, writ petition should not be entertained ignoring statutory dispensation. But, such principles,may be given a go bye, if Court is convinced that on the face of it, impugned order is not sustainable in law. In the instant case, directions issued by Appellate Tribunal were plain and simple and AO had absolutely created new liability for assessee contrary to the directions issued by Tribunal, therefore, impugned order passed by AO was not sustainable in law and was, therefore, set aside. Matter was remitted to AO for fresh consideration of issue as specifcially directed by Appellate Tribunal.

REFERRED :

FAVOUR : In assessee's favour

A.Y. : 2004-05

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