Alternative remedy and incidental powers under TDS jurisdiction upheld where notification conferred Assessing Officer status

Availability of an alternative statutory remedy does not bar writ jurisdiction where the impugned action is alleged to be wholly without jurisdiction, and the objection may be inappropriate once the writ has been entertained and affidavits filed. A notification under section 120 conferring jurisdiction over specified TDS matters can make the officer an Assessing Officer for that limited purpose, with the incidental power under section 131 to require discovery and production of documents. A later notification expressly referring to section 131 is treated as clarificatory. On that basis, the requisition was regarded as valid and within jurisdiction.

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Issues: (i) Whether the writ petition was barred by the existence of an alternative statutory remedy under the Income-tax Act, 1961. (ii) Whether the officer who issued the requisition had authority to call for books of account and documents in relation to the return filed under section 206 of the Income-tax Act, 1961.

Issue (i): Whether the writ petition was barred by the existence of an alternative statutory remedy under the Income-tax Act, 1961.

Analysis: The availability of an alternative remedy does not operate as an absolute bar where the impugned action is alleged to be wholly without jurisdiction. The objection was also considered inappropriate at the stage of final hearing after the writ had already been entertained and affidavits filed.

Conclusion: The preliminary objection based on alternative remedy was rejected against the assessee.

Issue (ii): Whether the officer who issued the requisition had authority to call for books of account and documents in relation to the return filed under section 206 of the Income-tax Act, 1961.

Analysis: The officer was not the regular Assessing Officer, but the notification issued under section 120 vested him with jurisdiction over specified matters including section 221. The Court held that once such power was conferred, he became an Assessing Officer for the relevant purpose, and the powers under section 131 to require discovery and production of documents were implicit in that status. The later notification expressly mentioning section 131 was treated as clarificatory and not as creating the power for the first time.

Conclusion: The requisition was held to be within jurisdiction and valid against the assessee.

Final Conclusion: The challenge to the requisition failed, and the writ petition was dismissed after the Court upheld the officer's authority to act as Assessing Officer for the relevant TDS matters.

Ratio Decidendi: Where jurisdiction over specified TDS matters is validly conferred by notification under section 120, the officer assumes Assessing Officer status for that purpose and may exercise the incidental powers necessary to enforce production and enquiry under section 131.

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