Shankaran Balkrishnan Nair v. The Commissioner Of Income Tax (Tds) Circle 14 And Ors

IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION WRIT PETITION NO. 6287 OF 2013 Shankaran Balkrishnan Nair. vs.The Commissioner of Income Tax(TDS) Circle 14 and ors. ...Petitioner. ...Respondents. Mr. Ashok J. Patil for the Petitioner.Mr. Abhay Ahuja for the Respondents. CORAM : M. S. SANKLECHA AND G.S. KULKARNI, JJ.DATE : 22 JULY 2014 DATE : PC: The petitioner seeks declaration under Article 226 of the Constitution of India that stake money earned by horse owners should not be construed as winnings from games for the purpose of Section 194B of the Income Tax Act, 1961(“the Act”). In this petition, the respondents 1,2 and 4 are situated in Hyderabad. Respondent No.5 is situated in Delhi. None of the respondents are situated in Mumbai. Respondent Nos. 1 and 2 are officers of Income Tax situated in Hyderabad. Respondent No.3 is the Central Board of Direct Taxes (CBDT) and Respondent No.5 is the Ministry of Finance at New Delhi. Respondent No.4 is the Hyderabad Race Club, Hyderabad. 2)The learned Counsel for the petitioner states that the petitioner is a resident of Hyderabad who is being assessed to tax in Mumbai. The petitioner is an horse owner and in that capacity receives stake money on the race won by the horse owned by him. This stake money is received by the petitioner from Hyderabad Race Club, Hyderabad. The Assessing Officer of Hyderabad Race Club on 28 March 2013 passed an five orders under Section 201(1) and 201(1A) of the Act directing Hyderabad Race Club to deduct tax while making payment of the stake money to the horse owners whose horses win the horse race held at Hyderabad Race Club for Assessment Years 2007-08 to 2013-14. The above orders declared the Hyderabad Race Club as assessee in default for failing to deduct tax at source on payment of stake money to race horse owners. These orders were challenged in Andhara Pradesh High Court by filing W. P. No.12817/2013 to 12821/1993 and they were dismissed on 26 April 2013 on the ground of alternative remedy. 3)We are not able to understand the grievance of the petitioner. Any amount of tax deducted at source by the Hyderabad Race Club will be available to the petitioner as credit in discharge of his tax obligations. At this stage there does not appear to be any cause of action to file this petition. In any case no cause of action is shown to have arisen within the jurisdiction of this Court. At the same time, the Andhra Pradesh High Court has refused to entertain the petition and we see no reason for the petitioner to urge the same issue before us. In any view, as the assessing respondents are at Hyderabad, the forum conveniens would also be at Hyderabad. In the above view , we see no reason to entertain this petition. 4) Accordingly, the petition is dismissed with no order as to costs. (G. S. KULKARNI, J.)(M.S. SANKLECHA, J.)