Summary
A company challenged the High Court’s refusal to entertain a writ against buy-back tax liability, arguing that no statutory appeal existed. The Supreme Court held that the broad appeal provision covering denial of liability to assessment included determinations under section 115QA. Earlier notice and interim protection had not disposed of the alternative-remedy objection. The statutory appeal was to proceed, with actual tax liability expressly left undecided.
Issues
- Whether determination of buy-back tax liability was appealable under section 246A.
- Whether earlier interim orders precluded the High Court from later declining writ jurisdiction for an adequate alternative remedy.
Provisions considered
- Section 246A(1)(a), Income-tax Act, 1961The independent category of orders where an assessee denies liability to assessment encompasses determinations under section 115QA and is not confined to sections 143 and 144 assessments. (¶¶ 7, 8, 11, 12, 13, 14)
Held
- Denial of liability to assessment is a comprehensive and independent appellate category. Both liability and its computation under section 115QA fall within it. (¶¶ 9, 11, 12, 13, 14)
- Availability of an efficacious statutory appeal justified declining discretionary writ jurisdiction here. Admission or interim protection does not establish an absolute rule preventing later dismissal on alternative-remedy grounds. (¶¶ 15, 16, 17)
- The Revenue’s recorded concessions addressed potential prejudice in pursuing the statutory appeal. The company’s actual liability and whether its transaction fell within section 115QA remained for the competent authorities. (¶¶ 17, 18)
Result
Appeal dismissed without costs. The High Court’s refusal to entertain the writ petition was upheld. The statutory appeal filed on 30 August 2019 was to proceed according to law; the merits of buy-back tax liability remained open.