Writ interference with rectification notice is premature where jurisdictional defect is not shown and the assessee can respond.

A writ court will not interfere with a show-cause notice for rectification under the Income-tax Act unless the notice is shown to be wholly without jurisdiction or an abuse of process. Here, the notice proposed rectification on the basis of an alleged mistake apparent from the record, but the assessee had an opportunity to respond and the issues required examination of the transfer arrangement and supporting materials. As the statutory process was still at a preliminary stage and no clear jurisdictional defect was shown, judicial interference was unwarranted. The writ petitions were therefore rejected as premature, and the rectification proceedings were allowed to continue in accordance with law.

---

---

Issues: (i) Whether the notice issued for rectification under sections 154 and 155(5) of the Income-tax Act, 1961, was without jurisdiction or otherwise liable to be quashed in writ proceedings.

Analysis: The notice called upon the assessee to show cause against proposed rectification of the assessment on the footing that a mistake apparent from the record existed. The assessee had been given an opportunity to respond, and the controversy turned on matters requiring examination of the transfer arrangement and supporting materials. At that stage, the writ court declined to short-circuit the statutory process, holding that the proceedings were not shown to be void or an abuse of process and that interference was unwarranted before the assessee had pursued the remedy available under the Act.

Conclusion: The notice and the proposed rectification proceedings were upheld as maintainable, and the challenge to them failed.

Final Conclusion: The writ petitions were rejected as premature, and the rectification proceedings were permitted to continue in accordance with law.

Ratio Decidendi: A writ court should not interfere at the stage of a show-cause notice for rectification under the Income-tax Act unless the notice is shown to be wholly without jurisdiction or an abuse of process; where the statutory process is still at a preliminary stage and the assessee has an opportunity to contest the proposed action, judicial interference is not warranted.

---