Chhattisgarh State Electricity Board V. Union of India, Ministry of Finance, Department of Revenue and Union of India, Ministry of Finance, Central Board of Direct Taxes and The Chief Commissioner of Income Tax, Raipur and The Assistant Commissioner of Income Tax, Circle 2(1) Raipur

WP/6068/2006

AI Insights

The case involves the Chhattisgarh State Electricity Board (the Board) challenging the interest levied by the Assessing Authority under Sections 234A, 234B, and 234C of the Income Tax Act, 1961, for the assessment year 2002-03. The Board filed a writ petition under Articles 226 and 227 of the Constitution of India, seeking to contest the correctness of the orders passed by the Assessing Authority. The High Court of Chhattisgarh initially granted an interim stay on the demand notices but advised the Board to exhaust alternative remedies available under the Income Tax Act before approaching the court.

• Counselvise Citation: [2007] 140 COUNSELVISE.COM (IT) 803990 (HC-CHHATTISGARH)
• Appeal Type: Others
• Pronouncement Date: 27-04-2007
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: B K RAWAT
• Assessee Lawyers: RAVI SHANTOR PRASAD; SUPC BNA SRIVASTAVA; P S KOTHIY
• Keywords: Assessment Year 2002-03; Interest Levy; Stay order; Writ petition
• Section: 234B; 234A; 234C

Judgement Text

"^ f HIQH COURT OF CHHATTISGWIH AT BIUkSPUR SingteBench : Hon'WeShri H.L te i, C-t. Writ PeUUon m No. SSSiBofSOOS PETmONEB BEseaioewrs CMiattisgarft State Electrictty Baant, P.0. Sunder Nagar, Dmganiya, Raipur (Chhattisgath), Thnugh its Secrdary. Vs. 1. Union of India, Ministiy of Finaice, Department of Revenue, North Block, NewDelhi-110001 ttiroygh its Secrdafy. Also at : Cential Revenue Bulldir^, Civit Lines.Raipur, Chhatti^arh. 2. Union of India, Ministiy of Finanoe, Ceiatral Board of Direct Taxes, ftorth Btoolt, NewDelhi-110001. Also at : Centrai Revenue Buikting, ChnT Lines, Raipur, Chhattisgarh. 3. The Chief Commisstoner of tocane Tax, Raipur. 4. The Assistart Commissioner of Income Tax,Circte2(1)Raipur. Writ Petition under Artide 226 read with Article 227 oflhe Coiistitution of Inttia. erssente Shri Ravi Shantor Prasad, Senior Advocate with Smt. SupcBna Srivastava and Shri P.8. Ko^iy, counsel for the pettioner. Shri B.K. Rawat counsel for respondents No. 3 and 4. ORAl.ORDERJ^ (Passed on 27mA^.ii'^0(>7) The petitioner - Chhattisgaih State Etectriclty Board ( ftw short \"the Board') in this petition filed under Artietes 226 anct 227 ofthe Constitutton ealts in question the owrectness or otherwise of the ordera passad by th»Assessing Aithority in levying interest under Section 234 A, 234 B and 234C of the Income Tax Act, 1961 fthe Art' for short) while concluding the assessmerts fw the assessment year 2002-03. (2) This Court white entertainirg the p^itton had grantad irtertro order aS stay, staying the demand notices issued by ttie respondent - Assessing Authority and that order is slill operatir^ agahst the respondente. ; r 'M /'!- (3) In my ylew, if for any reason, the petNoner -Board was aggrieved by the levy of interest alone by the Assessing Authority, it has to file an appropriate application for walver of Interest either before the Bcard of Revenue or before the Chief Commissioner, Income Tax. Without exhaustlng that remedy vifriich in my opinlon is not only an atternatwe, effeGt'ive and efficacious mnedy, the petitioner - Board coutd not have approached this Coyrt. (4) In that view of the matter, without golFig into the other details of tte case, ttie petltion is diqaosed of. Liberty is reserved to the petitioner - Board, if they so desire, to file an appropriate appttcation for waiver of Intaest tevi»jt>y the Assessing Authority in exeroise of his poweps under Section 234-A, 234-B and 234-C ot the Ad before the Board of Revenue or befere tfte Chief Commissioner, Income Tax, within a morth's time fronn today. If for any reason the Board has delegated its powere to any other authority, It is at tibaty to transfer the application/petttion Bial may be fited by tbe petitioner-Boaed (br adjudication and decision, tothat authority. (5) If an when such an qsplication is fieU bythe P®titior»r-Board, the Beard of Revenue or the Chief Commissioner, Income Tacc or any other airthorlty empowered under the Act, would conskler the same in aCcwdance with aw as expeditiously as possible, at any rate, withln two mortha fran the date of filirg of the application. Till such time the interim order granted Mrtier by this Court will enuretothe benefit ofthe petitioner-Board. Oidered aceorethTgly. Sd,/- ChiefJustice \"^a^ 'y "