Writ interference in reassessment declined where alleged non-disclosure was a debatable issue requiring inquiry by tax authorities.

Reassessment proceedings under sections 147(a) and 148 were not stopped in writ jurisdiction because the alleged omission to disclose the earlier wealth-tax assessment and valuation raised a debatable question for the assessing and appellate authorities. Since further enquiry was required, the court held that no case for threshold interference under Article 226 was made out. The assessee was left free to raise all objections before the assessing authority, and the reassessment notice was sustained.

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Issues: Whether reassessment proceedings initiated under sections 147(a) and 148 of the Income-tax Act, 1961 could be interdicted in writ jurisdiction on the ground that the assessee had disclosed all primary facts and that there was no non-disclosure of material facts.

Analysis: The question whether omission to disclose the previous wealth-tax assessment and the valuation adopted therein amounted to failure to disclose material facts was treated as a debatable issue requiring examination by the assessing and appellate authorities under the Act. The existence of scope for argument and further enquiry meant that it could not be said that no prima facie case existed for reopening the assessment. In those circumstances, interference under Article 226 of the Constitution of India at the threshold was considered unwarranted, leaving the assessee free to raise all objections before the assessing authority.

Conclusion: The writ challenge to the reassessment notice was rejected and the reassessment proceedings were allowed to continue.

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