MOHD. SAJID BAINS vs. THE INCOME TAX OFFICER

Facts

The petitioner, Mohd. Sajid Bains, filed a writ petition challenging an order dated 30.03.2023 passed by the Income Tax Officer (ITO), Ward-1, Sikar, under Section 148 of the Income Tax Act, 1961. The petitioner contended that the notice was issued without following the CBDT notification dated 29.03.2022 and cited a coordinate bench's interim order in a similar case. The revenue opposed the petition, arguing it was premature as proceedings were pending before the authority where the petitioner could raise objections. The High Court decided to hear the matter finally at the petitioner's request.

Held

The High Court dismissed the writ petition. It held that a writ petition should not ordinarily be entertained at the stage of a show-cause notice, especially when alternative statutory remedies are available. The Court relied on several Supreme Court judgments, including Union of India Vs. Coastal Container Transporters Association & Ors., Commissioner of Central Excise, Haldia Vs. Krishna Wax (P) Ltd., and State of Maharashtra and Ors. v. Greatship (India) Limited. The Court found that the notice under Section 148 was a show-cause notice, and the petitioner had the remedy to file a reply and raise all objections before the Assessing Authority. The interim order cited by the petitioner was considered non-binding as it was an interim measure and the present matter was being decided finally. The Assessing Authority was expected to consider the petitioner's objections during the assessment proceedings. The principle established is that interference by a writ court at the show-cause notice stage is rare and should not be routine, unless there is a clear lack of jurisdiction or abuse of process, which must be prima facie established.

Key Issues

1. Whether the High Court should entertain a writ petition challenging a notice issued under Section 148 of the Income Tax Act, 1961, at the show-cause notice stage, when alternative remedies are available. Assessee's Contentions: - The notice under Section 148 was issued without jurisdiction as it did not follow the CBDT notification dated 29.03.2022. - Relied on an interim order from a coordinate bench in Krishna Kumar Vs. The Income Tax Officer & Anr. (D.B. Civil Writ Petition No.8296/2023) directing that proceedings could continue but no final assessment order be passed. Revenue's Contentions: - The writ petition was filed prematurely against a show-cause notice. - Proceedings were still pending before the authority, and the petitioner could submit a reply and raise all legal objections.