Judicial Discipline Prevails as High Court Defers Decision to Await Supreme Court Judgment on Reassessment Notices
In a significant development concerning tax reassessment procedures, the Himachal Pradesh High Court has decided to stay proceedings under Section 148 of the Income Tax Act, 1961. This decision comes in light of the ongoing review of the legality and validity of such notices by the Supreme Court of India.
The case in question, "Jatinder Singh v. Assistant Commissioner of Income Tax Central Circle, Shimla & Ors.," was heard by a division bench comprising Justices Vivek Singh Thakur and Romesh Verma. The petitioner, Jatinder Singh, sought the quashing of a notice issued under Section 148 for the assessment year 2017-18, arguing it was devoid of jurisdiction and thus invalid.
During the proceedings, the court acknowledged that the core issue of the legality of Section 148 notices is already under the Supreme Court's scrutiny in the case titled "The Assistant Commissioner of Income Tax & Another v. M/s Dr. Reddy Laboratories Ltd." Given the pendency of this crucial legal question before the highest court, the High Court refrained from delivering its opinion, emphasizing judicial discipline and the need to avoid conflicting judgments and multiplicity of litigation.
The High Court ordered that the current petition be governed by the Supreme Court's forthcoming decision, underscoring the binding nature of the apex court's judgment on this matter. Consequently, the Himachal Pradesh High Court stayed the reassessment proceedings initiated under the contested notice until a final decision is rendered by the Supreme Court.
Legal representatives for both parties, including Mr. Kartik Bansal and Mr. Aman Thakur for the petitioner, and Mr. Neeraj Sharma, Mr. Ishaan Kashyap, and Mr. Bharat Bhushan for the respondents, were present via video conferencing and accepted the court's notice.
This decision highlights the High Court's adherence to judicial discipline and respect for the apex court's authority, ensuring that the legal process remains consistent and unified across jurisdictions. The outcome of the Supreme Court's ruling is now eagerly awaited, as it will have significant implications for similar cases across the country.
Bottom Line:
Proceedings under Section 148 of the Income Tax Act stayed by the High Court due to the matter being sub judice before the Hon'ble Supreme Court to avoid multiplicity of litigation.
Statutory provision(s): Income Tax Act, 1961 Section 148
