Explore the unique nature of litigations in income tax, distinct from other legal domains. Delve into the dual role of executive and judiciary, ensuring a balanced and specialized approach. Uncover the historical effectiveness of this system in addressing complexities in income tax laws.
Litigations are generally the consequence of clashes of rights and interest of citizens either with other individuals or with state and attempt to restoration of rights whatever in nature or to seek justice within the framework of existing laws of nation and citizen consciousness to enforce his legal rights given in different laws as well as in the constitution which is mother of all laws of a nation. Law and science both has undefinable periphery and both are most living subjects with the change and development of civilization and every time either the new discovery or invention or new enactment graces the both subjects which no other fields of education are boast of. Now matter of present deliberation is whether all litigations are of same nature? The answer is sound NO. In legal jurisprudence taxation field among thousand laws has district and separate standing both in practice and precept and in taxation laws, income tax law has totally distinct and distinguished features from other laws. In all other laws litigation and application of law is totally in the hands of our judiciary from lower court or tribunal to Apex court. But in income tax, entire judicial system is comprises of partly department and partly judiciary which means a Sphinx made of two authorities and in every litigation one side is fixed and that is the department. In income tax matters litigation first start from ITO level by initiating scrutiny, survey or search proceeding and that is the reason of conferring the both judicial and executive power to the officers, known as quasi judicial authority which means in each litigation he is both adjudicator as well as the investigator unlike the civil court where judicial officers are only adjudicators and are totally depended upon the other authorities for investigation of fact. But in income tax A.O is self sufficient on both investigation as well as adjudication power. This is second remarkable distinct feature of income tax litigations. Third is the first appellate authority is of departmental officer and entire appellate power is given to the executive with quasi judicial power under CPC. Next forum for third round of litigation is the Tribunal which although is totally having judicial function and trapping but is still be considered a quasi judicial authority. It only from fourth round of a litigation assessee can have access to pure court of law and that is High court and next and final round in Supreme court.
Therefore from aforesaid deliberation, the great and grave distinction of income tax litigations are clearly discernable where every dispute is first adjudged by the executive and then by the judiciary. Now question is why this peculiar system of one country and two sets of judicial administration? The clear reason is that income tax being most complex law among all existing laws of a nation always call for a joint interference of both executive and judiciary. Legislatures aptly left the duty of investigation of facts and formulation of charges in the hands of executive whose specialized knowledge on factual aspects of a most complex subject is indispensable service and Tribunal being highest fact finding authority is sufficiently empowered to balance the conflicting interest of both revenue and assessee. Therefore scope of misapplication of law or injustice is nearly Nil. While the High courts and Apex court is empowered to adjudicate the only question of law without modifying or interfering the factual record of a litigation where Tribunal like King Solomon acts as bottleneck to any attempt of injustice by the department to be perpetuated on the assessee. So only in taxation litigations said peculiarity of justice system is prevalent but is working wonders for last 150 years or more in income tax history of India with glorious reputation.
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