Case Law Details
Navjot Saini Vs Union of India & Ors (Himachal Pradesh High Court)
The Himachal Pradesh High Court, in the case of Navjot Saini Vs Union of India & Ors, addressed a petition challenging the jurisdiction and legality of a notice issued under Section 148 of the Income Tax Act, 1961, concerning the reassessment of income that allegedly escaped assessment. The petitioner sought the quashing of the Section 148 notice dated March 20, 2024, and the subsequent assessment order dated March 28, 2025, passed under Section 147 read with Section 144 for the assessment year 2020-21. The core argument was that the reassessment proceedings were illegal, without jurisdiction, and in violation of the prescribed procedure and legal sanction.
The Court noted a critical factual point: the fundamental issue concerning the legality, validity, and propriety of notices issued under Section 148 is already under consideration by the Supreme Court of India. This issue is pending in a batch of matters, with the lead case being The Assistant Commissioner of Income Tax & Another Vs. M/s Dr. Reddy Laboratories Ltd. (SLP (c) No. 17040/2024).
Adhering to the principle of judicial discipline, the High Court chose to refrain from offering an opinion on the merits of the Section 148 challenge. Instead, it directed that the present petition shall be governed by the final judgment delivered by the Supreme Court on the matter, making that decision binding on the Navjot Saini case. Furthermore, to prevent the multiplicity of litigation that would arise from continuing the assessment proceedings while the jurisdictional validity of the notice is questioned at the apex court, the High Court ordered a stay on all further proceedings before the competent authority until the issue is conclusively decided by the Supreme Court. The writ petition was disposed of with these directions.
FULL TEXT OF THE JUDGMENT/ORDER OF HIMACHAL PRADESH HIGH COURT
Notice. Mr. Anshul Attri, learned CGC and Mr.Neeraj Sharma, learned Advocate, appear, waive and accept notice on behalf of the respective respondents.
2. The instant petition has been filed for grant of the following substantive relief:-
“(a) That Civil Writ Petition under Article 226 of the Constitution of India praying for issuance of writ in the nature certiorari for quashing the impugned order dated 28.03.2025 under Section 147 read with Section 144 (Annexure P-1) for assessment year 2020-21 passed in furtherance to the notice issued under Section 148 (Annexure P-2) being illegal and without jurisdiction and in violation to the procedure of law and without proper and legal sanction. ”
3. The subject matter of the challenge in this petition, whereby the legality, validity and propriety of impugned notice under Section 148, dated 20.03.2024 (Annexure P-2) is already under consideration before the Hon’ble Supreme Court of India in SLP (c) No. 17040/2024, titled as The Assistant Commissioner of Income Tax & Another Vs. M/s Dr. Reddy Laboratories Ltd. with connected matters.
4. Since the issue involved in this petition is already pending consideration before the Hon’ble Supreme Court, therefore, keeping in view the judicial discipline, we refrain ourselves from giving our opinion with respect to impugned notice under Section 148, dated 20.03.2024 (Annexure P-2), as assailed in this petition. We direct that the present petition shall be governed by the judgment passed by the Hon’ble Supreme Court and the decision thereto, shall be binding on this case also.
5. 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.
6. The writ petition is disposed of in the aforesaid terms, so also the pending application(s), if any.
Notes:
1 Whether the reporters of Local Papers may be allowed to see the judgement?
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