Income Tax Act | HP High Court Stays Reassessment Proceedings U/S 148 As Validity Of Notices Were Pending Before SC
The Himachal Pradesh High Court has stayed reassessment proceedings initiated against an assessee under Section 148 of the Income Tax Act, 1961, noting that the validity of such notices is already under consideration before the Supreme Court. A Division Bench comprising Justice Vivek Singh Thakur and Justice Romesh Verma passed the order while hearing a writ petition which had...
The Himachal Pradesh High Court has stayed reassessment proceedings initiated against an assessee under Section 148 of the Income Tax Act, 1961, noting that the validity of such notices is already under consideration before the Supreme Court.
A Division Bench comprising Justice Vivek Singh Thakur and Justice Romesh Verma passed the order while hearing a writ petition which had challenged a reassessment notice issued for Assessment Year 2017-18, on the ground that it was without jurisdiction.
During the hearing, the Bench noted that the very same issue relating to the legality of reassessment notices is pending before the Supreme Court in SLP (C) No. 17040 of 2024, titled Assistant Commissioner of Income Tax & Anr. v. M/s Dr. Reddy Laboratories Ltd., along with connected matters.
In view of the pendency of the issue before the apex court, the High Court held that it would be inappropriate to express any opinion on the merits of the impugned notice. The Bench observed that principles of judicial discipline required it to refrain from adjudicating an issue already seized by the Supreme Court .
The Bench further noted that continuation of reassessment proceedings during the pendency of the matter before the Supreme Court would likely result in multiplicity of litigation. Accordingly, it stayed all proceedings pursuant to the impugned notice until the Supreme Court finally decides the issue .
In view of the above, the writ petition was disposed of with the clarification that the outcome of the Supreme Court proceedings would be binding on the present case as well.
Case Title: Jatinder Singh Vs. Assistant Commissioner of Income Tax Central Circle, Shimla & Ors.
Case No.: CWP No. 20938 of 2025
Appearance for the Petitioner: Mr. Kartik Bansal, Advocate(through vc) with Mr. Aman Thakur, Advocate
Appearance for the Respondent: Mr. Neeraj Sharma and Mr. Ishaan Kashyap, Advocates, for Respondent Nos. 1,2,4,& 5, Mr. Bharat Bhushan, Senior Panel Counsel, for Respondent No. 3-UOI