Writ jurisdiction and tax assessments: High Court declined interference because an effective statutory appeal was available.

A writ challenge to show cause notices issued under the Income-tax Act and the consequential assessment order was held not maintainable because an efficacious statutory appellate remedy was available. The court reiterated that writ jurisdiction should not ordinarily be exercised against notice or assessment proceedings where the tax statute provides a complete appellate machinery, unless exceptional circumstances are shown. As no such exceptional circumstance existed, and the assessment order could be pursued in appeal under the statutory regime, the writ petition and amendment application were not entertained and the petitioner was relegated to the appellate remedy.

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Issues: Whether the writ petition challenging the show cause notices and the consequential assessment order was maintainable in view of the availability of an efficacious statutory appellate remedy, and whether the case disclosed exceptional circumstances warranting exercise of extraordinary writ jurisdiction.

Analysis: The challenge was directed against notices issued under Sections 144 and 148 of the Income-tax Act, 1961 and the subsequent assessment order passed during pendency of the petition. The Court found that the limitation question and the other objections raised by the revenue were not free from doubt, and declined to record observations on the merits so as not to prejudice the parties. Emphasis was placed on the settled principle that petitions assailing show cause notices or assessment orders should ordinarily not be entertained where the statute provides a complete appellate machinery, save in exceptional cases. The Court held that no such exceptional circumstance existed here and that the impugned assessment order could be challenged in appeal under the statutory regime.

Conclusion: The writ petition and the amendment application were not entertained, and the petitioner was relegated to the statutory appellate remedy.

Final Conclusion: The order reinforces the rule that writ jurisdiction will not ordinarily be invoked against assessment proceedings where an adequate and effective appeal lies under the tax statute.

Ratio Decidendi: Where a complete statutory appellate remedy is available against an assessment order, writ jurisdiction should not be exercised in the absence of exceptional circumstances.

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