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.
