Writ interference with section 263 revision notice declined where factual issues could be raised in statutory proceedings.

Article 226 writ interference was considered inappropriate against a show-cause notice proposing revision under section 263 of the Income-tax Act. Section 263 confers a discretionary revisional power on the Commissioner, to be exercised objectively and on relevant material, but the notice here only invited the assessee's explanation before any final decision. As the objections involved factual questions that could be addressed in the statutory proceedings, and an appellate remedy would remain available against any final revisional order, extraordinary writ jurisdiction was not warranted. The challenge to the notice was therefore rejected.

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Issues: Whether the High Court should exercise writ jurisdiction under Article 226 to interfere with a notice proposing revision under section 263 of the Income-tax Act, 1961.

Analysis: Section 263 confers a discretionary revisional power on the Commissioner to call for and examine records and revise an order prejudicial to the Revenue, but the power is to be exercised objectively, fairly, and on relevant material. In this case, the impugned communication was only a show-cause notice proposing action and inviting the assessee to place its explanation before the Commissioner. The matters raised involved questions of fact and could be examined in the statutory proceedings, and the assessee had an appellate remedy against any final revisional order. On these facts, no case for extraordinary writ interference was made out.

Conclusion: The challenge to the show-cause notice was rejected and the writ petition failed.

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