Bhagwati Ferro Metal Pvt. Ltd. Vs ACIT (Bombay High Court)
The Bombay High Court heard a writ petition challenging a notice issued under Section 148 of the Income Tax Act, 1961, which had earlier been stayed by interim relief. The petitioner argued that the notice was invalid as it had been issued by the Jurisdictional Assessing Officer instead of the Faceless Assessing Officer, as mandated by law, rendering it a fatal defect requiring quashing. The petitioner relied on a prior Division Bench decision which had addressed the same issue.
The Revenue acknowledged that the issue was covered by the earlier decision but submitted that the ruling had been challenged before the Supreme Court and may be reconsidered. It was also clarified that no stay had been granted on that decision.
The High Court noted that since the issue was squarely covered by the binding precedent and there was no stay on that ruling, it was obligated to follow it. Accordingly, the Court set aside the impugned notice issued under Section 148 along with all consequential proceedings.
At the same time, the Court granted liberty to the Revenue to revive the writ petition if the earlier decision is overturned by the Supreme Court. It clarified that revival could be sought by filing a praecipe without the need for a separate application, and that upon revival, the case would be decided on its own merits, including other grounds raised in the petition.
