Jurisdiction of S. 148 Challenged: HP HC Refuses to Interfere as Similar Matters Pending Before SC, Stays proceedings [Read Order]
To avoid multiplicity of litigation and unnecessary parallel proceedings, it ordered that all further proceedings before the assessing authority in this case shall remain stayed until the Supreme Court delivers its judgment.
Himachal - Pradesh - HC
Himachal - Pradesh - HC
The Himachal Pradesh High Court, declined to adjudicate upon the challenge to reassessment proceedings initiated under Section 148 of the Income Tax Act, 1961, holding that an identical issue is already pending before the Supreme Court.
The petitioner, Navjot Saini had sought to quash the reassessment order dated 28.03.2025 passed under Section 147 read with Section 144 for AY 2020-21, which was preceded by a notice issued under Section 148. The challenge was premised on lack of jurisdiction, violation of due process, and absence of proper sanction.
The Division Bench of Justice Vivek Singh Thakur and Justice Sushil Kukreja noted that the validity and legality of notices issued under Section 148, in similar circumstances, are sub judice before the Supreme Court in ACIT & Anr. v. Dr. Reddy Laboratories Ltd. (SLP (C) No.17040/2024) and connected matters. Observing the principle of judicial discipline, the Bench held it inappropriate to render an opinion when the matter was already seized by the apex court.
Master the Latest Amendments in Income Tax Act Click here
Accordingly, the High Court directed that the outcome of the Supreme Court’s judgment would govern the present petition. To avoid multiplicity of litigation and unnecessary parallel proceedings, it ordered that all further proceedings before the assessing authority in this case shall remain stayed until the Supreme Court delivers its judgment.
The court ruled that “The continuity of proceedings before the competent authority, in view of the pendency of the matter before the Hon’ble Supreme Court is bound to lead to multiplicity of litigation. Therefore, we deem it appropriate to stay such proceedings till the time issue is finally decided by the Hon’ble Supreme Court. Ordered accordingly.”
The Court clarified that the petitioner’s issue would be automatically addressed in light of the Supreme Court’s ruling, which would bind this case as well.
Support our journalism by subscribing to Taxscanpremium. Follow us on Telegram for quick updates
