Case: Indo Asahi Glass Company Limited and Another Vs. Income Tax Officer and Others

This appeal arises from the judgment of the Calcutta High Court which had dismissed the writ petition filed by the appellants wherein challenge was made to thee notice dated May 16, 1996The aforesaide notice was issued on the allegation that salary had been paid to four employees who were working with the appellants in India. These employees were Japanese and the salary in question had been paid by ay in Japan. In addition thereto, the appellants had also paid salaries to these four employees but tax had been deducted at source. Thee notice stated that what was paid to these four employees in Yen currency was also taxable under section 9 of thex Act and tax should have been deducted at sourceInstead of filing a reply to thee notice, the appellants chose to file a writ petition. The single judge dismissed the writ petition on the ground that alternative remedy was available to the appellants. In appeal, the Division Bench took the same view. Hence, this appeal by special leave.

Court's reasoning:
This and the other facts cannot be taken up for consideration by this court for the first time. In our opinion, the High Court was right in coming to the conclusion that it is appropriate for the appellants to file a reply to thee notice and take whatever defence is open to them.