Failure to Object to Tax Notice Before Challenging Renders Writ Premature

The High Court held that the petitioner's failure to file objections with the Assessing Officer before challenging the notice under Section 148 of the Income Tax Act rendered the writ petition premature and not maintainable. The court emphasized the importance of following the prescribed procedure outlined in the relevant Supreme Court judgment before seeking judicial intervention. The court dismissed the writ petition but granted the petitioner liberty to raise objections before the Assessing Officer in compliance with the Supreme Court judgment.

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Issues:
Challenge to notice under Section 148 of Income Tax Act, 1961 without filing objections with Assessing Officer.

Analysis:
The petitioner filed a writ petition challenging a notice issued under Section 148 of the Income Tax Act, 1961. The petitioner argued that the sanction for the notice was granted without proper consideration and opportunity of hearing. The respondent raised a preliminary objection, citing the petitioner's failure to file objections with the Assessing Officer before approaching the court, referring to the Supreme Court judgment in GKN Driveshafts (India) Ltd. vs. Income Tax Officer. In response, the petitioner relied on a judgment of the Gujarat High Court to argue that in certain circumstances, filing objections may not be necessary. However, the court held that the petitioner should have followed the procedure outlined in the Supreme Court judgment before filing the writ petition.

The court determined that the writ petition was not maintainable as the petitioner did not exhaust the alternative remedy of filing objections with the Assessing Officer as required by the Supreme Court judgment. The court emphasized that the petitioner should have followed the procedure laid down in the GKN Driveshafts case before approaching the court. Additionally, the court rejected the petitioner's attempt to rely on the Gujarat High Court judgment, stating that a High Court cannot distinguish a clear and categorical judgment of the Apex Court. Consequently, the court dismissed the writ petition but granted the petitioner liberty to raise objections before the Assessing Officer in compliance with the Supreme Court judgment.

In conclusion, the High Court held that the petitioner's failure to file objections with the Assessing Officer before challenging the notice under Section 148 rendered the writ petition premature and not maintainable. The court emphasized the importance of following the prescribed procedure outlined in the relevant Supreme Court judgment before seeking judicial intervention.

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