Jurisdictional validity of reassessment notice under Section 34: notice lacked jurisdiction and prohibition against further steps granted.

Whether an Income Tax Officer had jurisdiction to issue a reassessment notice under Section 34 was examined, treating issuance as a judicial/quasi judicial act capable of attracting supervisory writ jurisdiction. The court applied the patent versus latent want of jurisdiction distinction, holding that an apparent (patent) lack of jurisdiction warrants ready exercise of prohibition. Delay did not bar relief where jurisdictional usurpation was apparent on the face of the record. Outcome: the notice was held issued without jurisdiction and a writ of prohibition was granted restraining further reassessment steps for the relevant year.

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Issues: Whether the Income Tax Officer, A-V Ward, Bombay, had jurisdiction under Section 34 of the Income-tax Act to issue the notice dated 5th March, 1954, for reassessment of the petitioner for assessment year 1944-45, and whether a writ of prohibition should be issued restraining further proceedings.

Analysis: The notice under Section 34 was examined in the context of the assessment year 1944-45 and the sequence of prior notices and assessments. The characterisation of the act of issuing the notice was considered to determine whether it was judicial or quasi-judicial; the function of issuing a notice under Section 34 in the assessment process was treated as capable of attracting supervisory writ jurisdiction. The distinction between patent (apparent on the face of the proceedings) and latent want of jurisdiction was applied; where lack of jurisdiction is patent, the discretionary grant of a writ of prohibition is to be exercised readily. Delay in filing the petition was evaluated in light of the patent absence of jurisdiction, and found not to bar relief when jurisdictional usurpation is apparent on the face of the record.

Conclusion: The notice dated 5th March, 1954, was issued without jurisdiction under Section 34 of the Income-tax Act and a writ of prohibition is warranted; the petition is allowed in favour of the assessee, restraining the Income Tax Officer and successors from taking further steps to assess or reassess the petitioner for assessment year 1944-45 pursuant to that notice.

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