Facts of the Case

The Employees’ Provident Fund Organisation (South), New Delhi, instituted multiple writ petitions before the Delhi High Court against the Assistant Commissioner of Income Tax and other respondents concerning tax-related disputes.

It was brought to the Court’s notice that the same issue forming the basis of the present writ petitions had already been decided against the petitioner by the Income Tax Appellate Tribunal in the petitioner’s own case for earlier Assessment Years 2008–09, 2009–10, 2010–11, 2011–12, 2012–13, and 2013–14.

However, despite the existence of this adverse ITAT order dated 03 August 2016, the petitioner had not yet filed an appeal challenging that order before the competent Court.

 Issues Involved

  1. Whether writ petitions under Article 226 can be entertained when an earlier ITAT order on the same issue remains unchallenged?
  2. Whether the petitioner can seek writ relief without exhausting the statutory appellate remedy?
  3. Whether liberty can be granted to revive the writ proceedings after filing an appeal against the ITAT order?

 Petitioner’s Arguments

  • The petitioner sought judicial intervention in relation to the tax issues forming subject matter of the writ petitions.
  • It attempted to invoke the extraordinary writ jurisdiction of the High Court for adjudication of the disputes.
  • The petitioner sought interim protection through stay applications in the connected matters.

 Respondent’s Arguments

  • The Revenue opposed the maintainability of the writ petitions.
  • It was contended that the same legal issue had already been decided by the ITAT against the petitioner for earlier assessment years.
  • Since the petitioner had not challenged the ITAT order through the statutory appellate mechanism, entertaining the writ petitions at this stage would be premature and legally unsustainable.

 Court Findings / Observations

The Delhi High Court observed that the petitioner had not yet challenged the ITAT’s order dated 03 August 2016 in respect of earlier assessment years where the identical issue had already been decided against it.

The Court found that without first challenging that earlier order through the prescribed legal mechanism, the present writ petitions could not be entertained.

The Court emphasized procedural propriety and judicial discipline in appellate adjudication, indicating that the petitioner must first pursue the proper appellate remedy.

 Court Order / Final Decision

The Delhi High Court disposed of the writ petitions at the threshold stage and declined to entertain them.

However, liberty was granted to the petitioner to revive the writ petitions after filing an appeal against the ITAT order dated 03 August 2016 and upon such appeal being entertained by the Court.

 Important Clarification

This judgment reinforces the principle that where an effective statutory remedy exists, especially against an earlier order deciding the same issue, the High Court may decline to exercise its writ jurisdiction.

The decision clarifies that litigants cannot bypass statutory appellate remedies and directly invoke writ jurisdiction on issues already adjudicated.
Link to download the order -https://delhihighcourt.nic.in/app/case_number_pdf/2017:DHC:8842-DB/SMD06092017CW78492017_152936.pdf

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