The Bombay High Court has stayed its own decision in the case of Hexaware Technologies Versus PCIT citing that the Special Leave Petition is pending before the Supreme Court.
The bench of Justice G. S. Kulkarni and Justice Somasekhar Sundaresan while granting interim relief to the assessee, observed that the endeavour of the Court would always be, that at least, the orders passed by the Court ought not to generate any litigation between the parties much less a further litigation with which we are concerned. In fact, the endeavour of the Court would be that the litigious issues achieve a quietus. This is however only a passing thought, which cannot always be a realistic situation. The Supreme Court is seized with the proceedings arising from Hexaware and an authoritative pronouncement of the Supreme Court on issues of law as involved is awaited.
The bench stated that this is also burdening the Revenue for the reason of time-bound preparation of appellate proceedings to be filed before the Supreme Court, adding to the substantial expenditure of not only the department but also of the assessee to defend such proceedings, before the Supreme Court. Apart from Hexaware such issues have also arisen before the Supreme Court from the decisions as rendered by the other High Courts.
“What now bothers us and more so judicially, is that neither for the assessee nor for the revenue, the ball would stop rolling. This, in as much as, the decision of this Court in Hexaware, being already assailed by the Revenue before the Supreme Court, it is stated by Mr. Sharma, that all our judgments which follow the decision in Hexaware and the other connected decisions, are now being assailed by the Revenue before the Supreme Court, in the proceedings of a Special Leave Petition being filed under Article 136 of the Constitution of India,” the court said.
Background – Challenge To Notice Issued Under Faceless Assessment Scheme
The petitioner/assessee has sought a relief that a notice issued to the petitioner under Section 148A(b)and the order passed under Section 148A(d) of the Income Tax Act, 1961 be quashed and set aside citing Hexaware Technologies Limited Vs. Assistant Commissioner of Income Tax.
The assessee contended that the notice has been issued by the Jurisdictional Assessing officer, which is outside the faceless mechanism as provided under the provisions of Section 144(B) read with Section 151A and the “Scheme” notified by the Central Government under Section 151A. In several proceedings which had come up before the Court, the Court had taken into consideration the decision and had granted reliefs, finally disposing of the petitions.
Conclusion
The court held that there shall be interim reliefs to the extent that there shall be stay to the notice under Section 148 dated 1 April 2024 and any other proceeding arising under the notice during the pendency of the hearing and final disposal of the petition.
The court granted the liberty to the parties to apply after appropriate orders are passed by the Supreme Court and final decision of the Supreme Court in Hexaware.
Case Title: JD Printers Pvt. Ltd. Versus The Income Tax Officer
Case No.: Writ Petition No. 12187 Of 2024
Date: 10/09/2024
Counsel For Petitioner: Akshay Zante
Counsel For Respondent: Akhileshwar Sharma