Writ interference in income-tax proceedings refused where Section 144B jurisdiction was prima facie satisfied and appellate remedies were available.

Writ interference under Articles 226 and 227 was held inappropriate where an assessee challenged proceedings before the Inspecting Assistant Commissioner under Section 144B on the ground that the variation between returned income and proposed income did not cross the prescribed limit. The availability of statutory remedies by appeal to the Commissioner (Appeals) and the Tribunal, together with the possibility of reference on a question of law, weighed against intervention. Since the rectification by the Income-tax Officer had already been appealed and its legality was pending before the appellate authority, and the draft assessment on rectified figures appeared to satisfy Section 144B, the proceedings were treated as prima facie within jurisdiction and the writ petition failed.

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Issues: Whether the High Court should interfere under Articles 226 and 227 of the Constitution of India to quash proceedings before the Inspecting Assistant Commissioner under Section 144B of the Income-tax Act, 1961, on the ground that the variation between returned income and proposed income did not exceed the prescribed limit and, therefore, the Inspecting Assistant Commissioner lacked jurisdiction.

Analysis: The petitioner had statutory remedies by way of appeal before the Commissioner (Appeals) and the Tribunal, and a question of law could also be referred to the High Court. The rectification made by the Income-tax Officer had already been challenged in appeal, and the legality of that rectification was a matter pending before the appellate authority. On the rectified figures, the draft assessment appeared to satisfy the requirements of Section 144B, so the proceedings before the Inspecting Assistant Commissioner were prima facie within jurisdiction. In these circumstances, the case was not fit for writ interference.

Conclusion: The jurisdictional challenge was rejected and the petition failed.

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