Writ interference against tax cancellation notice barred reopening of issues already finally decided on identical facts.

Writ interference was considered appropriate against a show-cause notice proposing cancellation of registration under the Income-tax Act where the same grounds had already been examined and decided in earlier appellate proceedings for the relevant years. The Court reasoned that compelling the assessee to reply to the notice and pursue the statutory remedy would serve no useful purpose because the disputed facts had already attained finality. The Court also noted that the absence of strict res judicata in tax matters did not help the revenue when the notice sought to reopen identical issues on the same factual basis, and the notice was held unwarranted and liable to be quashed.

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Issues: Whether the Court should interfere under writ jurisdiction with a show-cause notice proposing cancellation of registration under the Income-tax Act, 1961, after the very same grounds had already been examined in earlier appellate proceedings.

Analysis: The registration granted under section 184 had earlier been challenged on the same grounds, and the appellate authorities had already decided those grounds in favour of the assessee for the relevant years. The Court held that, in these circumstances, requiring the assessee to answer the notice and pursue the statutory remedy would serve no useful purpose. The fact that tax proceedings are not strictly governed by res judicata did not assist the revenue, because the notice sought to reopen matters that had already attained finality on identical facts.

Conclusion: The Court held that the notice was unwarranted and liable to be quashed.

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