SETH HARISH CHANDRA Vs. UNION OF INDIA

JUDGEMENT

(1.) THE only question for decision in this case is whether the present suit is barred by the provisions of section 67 of the Indian Income-tax Act, 1922.

(2.) A preliminary objection was taken by the defendant that the suit was barred under the provisions of section 67 of the Indian Income-tax Act. This objection found favour with both the courts below and the suit was, consequently, dismissed.

(3.) AS regards the contention that the impugned assessment orders passed by the income-tax authorities were mala fide, fraudulent and collusive, this point also does not seem to have been raised before the lower appellate court though it was urged before the trial court and the finding on the same was against the appellant. Reliance for this submission was made on a full bench decision in Lahore Electric Supply Co. Ltd. v. Province of Punjab. That case, however, is distinguishable because there an executive order under the Defence of India Act was sought to be challenged in the civil court. Unlike the Income-tax Act, no elaborate machinery by way of appeal, revision, etc., for the redress of grievances was provided under the Defence of India Act. In the present case, the appellant could file an appeal before the income-tax authorities and could agitate this point there. His remedy does not lie by way of a suit in a civil court.