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/6067/2006

AI Insights

The Chhattisgarh State Electricity Board filed a writ petition under Articles 226 and 227 of the Constitution of India, challenging the interest levied by the Assessing Authority under Sections 234A, 234B, and 234C of the Income Tax Act, 1961 for the assessment year 2003-04. The High Court of Chhattisgarh granted an interim stay on the demand notices issued by the Assessing Authority. The court, however, directed the petitioner to exhaust the alternative remedy of applying for a waiver of the interest before the Board of Revenue or the Chief Commissioner of Income Tax, emphasizing that this remedy is effective and efficacious.

• Counselvise Citation: [2007] 140 COUNSELVISE.COM (IT) 803992 (HC-CHHATTISGARH)
• Appeal Type: Others
• Pronouncement Date: 27-11-2007
• 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 SHANKAR PRASAD; SUPFFLNA SRIVASTAVA; P S KOSHY
• Keywords: Assessment year 2003-04; Interest Levy; Interim order; Stay; Writ petition
• Section: 234B; 234A; 234C

Judgement Text

"^- HI@H COURT OF CHHATTia8A»lAT BILASPUB Single Bench : Hon'bie Shri H.L. Dattu, C..I. Writ PeUtton m No. 6067of 2KK PETITIONER : Chhattisgarh State Eleetricity Boand, P.©. Sunder Nagar, Danysniya, Ra^ur (Chhattlsgarh), Through itsSeoretary. Vs. RESPONDENTS 1. Unlon of India, Ministiy eS Finanoe, Department of Revenue, North Btock, New Delhi -110 001 througb ItsSecretary. Also at : Central Revenue Buitding, Givil Lines, Raipur, Chhattisgarh. 2. Llnion of India, Ministry of Finance, CenStal BoardofDirectTaxes, North Block, N®wDethi-110001. Also at: Central Revenue Buitding, Civil Lines, Ralpur, ChhattisgaEh. 3. The Chief Coramissioner of tncome Tax, Ratpur. 4. The Assistant CommisslCTier of iRoome Tax,Circle2(1)Rai|xir. Wdt Petition under Article 226 read with Artiote227 ofthe Constttution ct India. Present: Shri Ravi Shankar Prasad, Senior Advocate with Smt. Supfflna Srivastava and Shri P.S. Koshy, counsel for the petBoner. Shri B.K. Rawat counsel for respondents No. 3 and 4. ORALORDERj. (Passed on27\" ^11,2007) The petitioner - Chhattisgarh State Blectricity Board ( fer short 'the Boara\") in this petition fiied under Articles 226 and 227 ofthe Conditutioncalte in question the correctness or otherwise of the ordere passed by the Assessing Authority in levying intere^ under Sectlon 234 A, 234 B end 234C af the income Tax Act, 1961 (\"the AcT for short) whife concluding the assesanentB tor the assessment year 2003-04. (2) This Court white entertainirg the petition had gnnted Interim oreler vf stay, staying the demand nottoes issued by the responctent ~ A^eseing Authority and that order is still operatlng against the respondents. ...... ...._..L...^,,J.___^_ 2. (3) In my view, If for any reason, the (»titioner-Board was aggrieved ty the levy of irrterest alone by the Assessing Authority, it has to file an appropriate application for waiver of interest either before the Baard of Ftevenue or befare the Chief Commissioner, Income Tax. Without exhaustir^ thrt remedy which in my opinion is not only an altemative, effective and efftoacious remedy, the petitioner- Board could not have approached thls Court. (4) In that view of the matter, without going into the