Bombay HC Stayed Section 148 Notice as Constitutional Validity Challenged

G M Polyplast Ltd. Vs ACIT (Bombay High Court)

The writ petition before the Bombay High Court challenges a notice issued under Section 148 of the Income-tax Act dated 30 March 2025. The petitioner also questions the constitutional validity of clause (iv) of Explanation 2 to Section 148 and clause (c) of the proviso to Section 148A, as applicable up to 31 August 2024, alleging that these provisions are arbitrary, unreasonable, and violative of Article 14 of the Constitution of India.

Considering that the petition raises issues of constitutional validity, the Court issued notice to the Attorney General of India and directed the respondents to file their response within four weeks. The Court observed that arguable questions arise in the matter and, therefore, granted interim relief by staying the operation of the impugned notice under Section 148 pending final disposal of the petition.

The order clarifies that all concerned parties may act upon a digitally signed copy of the order.

FULL TEXT OF THE JUDGMENT/ORDER OF BOMBAY HIGH COURT

1. In the above Writ Petition, the Petitioner seeks to quash and set aside the notice dated 30^thMarch, 2025 passed under Section 148 of the Act. The Petitioner also seeks a declaration that the provisions of clause (iv) of Explanation 2 to Section 148 and clause (c) of the proviso to Section 148A, as they stood upto 31^stAugust, 2024, are arbitrary, unreasonable and ultra vires Article 14 of the Constitution of India.

2. Since the constitutional validity of certain provisions is raised in the above Writ Petition, we issue

3. Since the Petition raises issues of constitutional validity, we issue notice to the Attorney General of India. We direct that the Respondents shall file their response to the above Writ Petition within a period of four weeks from today.

4. Since, we find that arguable questions are raised in the above Writ Petition, there shall be interim relief in terms of prayer clause (d) which reads thus :

“d) that pending the hearing and final disposal of the present petition, this Hon’ble Court may be pleased to stay the operation of the impugned notice dated 30.03.2025 under section 148 of the Act (Exhibit “C”).

5. This order will be digitally signed by the Private Secretary/ Personal Assistant of this Court. All concerned will act on production by fax or email of a digitally signed copy of this order.