Paradise Distillers Pvt. Ltd. Vs the Ito and Others — Income Tax | Himachal Pradesh HC (2025)

Paradise Distillers Pvt. Ltd. Vs the Ito and Others — Income Tax | Himachal Pradesh HC (2025)

What the court decided

AI extract

Outcome

Stay of assessment proceedings pursuant to the Section 148 notice dated 28.03.2025 until final decision by the Hon'ble Supreme Court in SLP (C) No.17040/2024; petition to be governed by, and bound by, that judgment; petition and pending applications disposed of.

Issue for consideration

Whether the notice under Section 148 dated 28.03.2025 (Annexure P-1) for AY 2022-23 is legal, valid and within jurisdiction, or illegal and void ab initio. +1 more

Court's answer

In view of judicial discipline and the pendency of the identical issue before the Hon'ble Supreme Court, this Court refrained from expressing any opinion on the impugned Section 148 notice dated 28.03.2025 assailed in the petition.

Ratio / Principle

The present petition shall be governed by the judgment of the Hon'ble Supreme Court in SLP (C) No.17040/2024, and the decision therein shall be binding on this case.

Key takeaways

Continuation of proceedings before the competent authority pending the Supreme Court decision would lead to multiplicity of litigation; therefore assessment proceedings are stayed till the issue is finally decided by the Hon'ble Supreme Court.ratio¶27

Detailed headnote1 paragraphs

Writ petition (CWP No.18840 of 2025, decided 16.12.2025, High Court of Himachal Pradesh) by Paradise Distilleries Pvt. Ltd. challenging notice under Section 148 of the Income Tax Act, 1961 dated 28.03.2025 for AY 2022-23 as without jurisdiction and void ab initio, sought quashing and stay. Identical issue sub judice before Hon'ble Supreme Court in SLP (C) No.17040/2024 (Assistant Commissioner of Income Tax v. M/s Dr. Reddy Laboratories Ltd. with connected matters). Court, observing judicial discipline, declined to pronounce on merits; directed petition to be governed by the Supreme Court judgment, which shall bind this case; stayed proceedings before competent authority till final Supreme Court decision to avoid multiplicity of litigation; petition disposed of. (Vivek Singh Thakur and Romesh Verma, JJ.)

2025:HHC:43898

IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA

CWP No.18840 of 2025 Date of decision: 16.12.2025

Paradise Distilleries Pvt. Ltd. ...Petitioner.

Versus

The Income Tax Officer, Parwanoo & Ors. …Respondents. Coram

Hon’ble Mr. Justice Vivek Singh Thakur, Judge. Hon’ble Mr. Justice Romesh Verma, Judge.

Whether approved for reporting?¹

For the petitioner : Mr. Rochak Singla, Advocate (through VC) and Mr. Surjeet Kumar, Advocate.

For the respondents : Mr. Neeraj Sharma and Mr. Ishan Kashyap, Advocates for respondents No.1 to 3.

: Mr. Bharat Bhushan, Senior Panel Counsel, for respondent No.4.

Vivek Singh Thakur, Judge (Oral)

The instant petition has been filed for the grant of following

substantive relief(s): -

“i. Issuance of a Writ in the nature of Certiorari or any other appropriate writ, order, direction or command for quashing the impugned the Notice dated March 28, 2025 u/s 148 (P-1) Page No: 68 for Assessment Year (AY) 2022-23, being without jurisdiction and issued in contravention of the provisions of the Income Tax Act and violative of the principles of natural justice as the

1 Whether the reporters of the local papers may be allowed to see the Judgment? Yes

-2-

2025:HHC:43898

Jurisdictional Assessing Officer is not competent to issue notice under Section 148 and the notice issued is in contravention to the provisions of Section 148 of the Income Tax Act, 1961 thus the notice and the subsequent proceedings being completely illegal and void ab initio in the eyes of law.

ii. To STAY the assessment proceedings for AY 202223 by staying the operation of notice dated March 28, 2025 (P-1) under Section 148 of the Act during the pendency of the present writ petition.”

The subject matter of the challenge in this petition, whereby the legality, validity and propriety of impugned notice under Section 148, dated 28.03.2025 (Annexure P-1) is already under consideration before the Hon’ble Supreme Court of India in SLP (C) No.17040/2024, titled as The Assistant Commissioner of Income

Tax & Another Vs. M/s Dr. Reddy Laboratories Ltd. with connected matters .

Since the issue involved in this petition is already pending consideration before the Hon’ble Supreme Court, therefore, keeping in view the judicial discipline, we refrain ourselves from giving our opinion with respect to impugned notice under Section 148, dated 28.03.2025 (Annexure P-1), as assailed in this petition. We direct that the present petition shall be governed by the judgment passed by the Hon’ble Supreme Court and the decision thereto, shall be binding on this case also.

-3-

2025:HHC:43898

4. The continuity of proceedings before the competent

authority, in view of the pendency of the matter before the Hon’ble Supreme Court is bound to lead to multiplicity of litigation. Therefore, we deem it appropriate to stay such proceedings till the time issue is finally decided by the Hon’ble Supreme Court. Ordered accordingly.

The petition is disposed of in above terms, so also the

pending application(s), if any.

(Vivek Singh Thakur) Judge

(Romesh Verma) Judge.

16^th December, 2025 (Pardeep)