Filing Objections Before Writ Petition: Importance of Procedure & Exhausting Remedies

The court emphasized the importance of following the procedure of filing objections before resorting to a writ petition, as established in the Supreme Court judgment in GKN Driveshafts (India) Ltd. The court found the writ petition premature and not maintainable due to the failure to exhaust the alternative remedy of filing objections before the Assessing Officer. The petition was dismissed with liberty for the petitioner to raise objections in accordance with the Supreme Court judgment.

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Issues:
Challenge to notice under Section 148 of the Income Tax Act, 1961. Validity of manual approval/sanction without DIN and date. Requirement of filing objections before filing a writ petition.

Analysis:

Issue 1: Challenge to notice under Section 148 of the Income Tax Act, 1961
The petitioner challenged the notice dated 31st March, 2021, issued under Section 148 of the Income Tax Act, 1961. The notice was signed and issued on the same day, with the petitioner receiving an SMS notification the next day. The petitioner contended that the manual approval/sanction by the Additional CIT, lacking a DIN and date, should be considered invalid. The petitioner relied on Circular No.19/2019 issued by the Central Board of Direct Taxes and argued that the sanction was granted under a repealed section of the Act. However, the court issued notice on this issue for further consideration.

Issue 2: Validity of manual approval/sanction without DIN and date
The petitioner argued that the manual approval/sanction without a DIN and date should be deemed invalid. The respondent's counsel contended that the petition should be dismissed as the petitioner did not file objections before the writ petition, citing the Supreme Court judgment in GKN Driveshafts (India) Ltd. v. Income Tax Officer, (2003) 259 ITR 19 (SC). The petitioner referenced a judgment of the Gujarat High Court to counter this argument, but the court held that the writ petition was premature as the petitioner did not follow the procedure laid down in the Supreme Court judgment. The court emphasized the importance of filing objections before resorting to a writ petition and dismissed the petition with liberty for the petitioner to raise objections before the Assessing Officer in accordance with the Supreme Court judgment.

Issue 3: Requirement of filing objections before filing a writ petition
The court emphasized the importance of following the procedure of filing objections before resorting to a writ petition, as established in the Supreme Court judgment in GKN Driveshafts (India) Ltd. The court noted that while the petitioner had responded to the reasons received, no specific objections were raised. The court rejected the petitioner's attempt to distinguish the Supreme Court judgment based on a Gujarat High Court decision, stating that it is not open for a High Court to distinguish a clear and categorical judgment of the Apex Court. Consequently, the court found the writ petition premature and not maintainable due to the failure to exhaust the alternative remedy of filing objections before the Assessing Officer.

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