Bombay High Court
Shreepad Vallabh Nagari Sahakari Patsanstha Maryadit BelheversusThe Income Tax Officer Ward 10(1), Pune
- Decided
- Disposal
- Disposed Off
Holding
The Court directed the 5th respondent to hear and dispose of the petitioner’s appeals for AY 2018-19 and 2019-20 within 12 weeks and disposed of the writ petition without costs.
Summary
The petitioner, a credit society, filed a writ petition challenging several Income Tax Department orders, including notices under sections 148 and 148A(d), reassessment orders under sections 147 and 144, and demand notices under section 156 for assessment years 2018-19 and 2019-20, and claimed that section 147A is unconstitutional. The petitioner also sought a stay on the recovery of Rs.2 crore made from an overdraft account and urged the appellate authority to decide its pending appeals expeditiously. The High Court noted that the appeals were already pending before the National Faceless Appeal Centre and that procedural defects (wrong sanctioning authority for AY 2018-19 and lack of a Document Identification Number for AY 2019-20) could render the reassessment proceedings infirm. Consequently, the Court directed the 5th respondent (Commissioner of Income Tax (Appeals)) to hear and dispose of the appeals within 12 weeks and ordered a refund of the recovered amount with interest if the appeals succeed. The writ petition was disposed of without any order as to costs.
Issues considered
- Whether the reassessment orders and notices issued under sections 148, 148A(d), 147, 144 and 156 of the Income Tax Act are legal.
- Whether section 147A of the Income Tax Act is unconstitutional and violative of Article 14 of the Constitution.
- Whether the High Court can issue writs of certiorari, mandamus or prohibition to direct the appellate authority to decide pending appeals within a stipulated time.
Legislation cited
- Income Tax Act, 1961 — s. 144, 147, 147A, 148, 148A(d), 151, 156
Subjects
- Income Tax
- reassessment
- section 148
- section 147
- section 147A
- section 151
- section 156
- section 144
- writ petition
- certiorari
- mandamus
- prohibition
- High Court
- appeal
- faceless appeal centre
- overdraft account
- sanction authority
- Document Identification Number
- Article 14
- constitutional challenge
Judgment
8.wp.9403.2026.doc
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION
WRIT PETITION NO.9403 OF 2026
Shreepad Vallabh Nagari Sahakari
Patsanstha Maryadit Belhe .. Petitioner
Versus
The Income Tax Officer,
Ward-10(1), Pune & Ors. .. Respondents
Digitally
signed by
UTKARSH
UTKARSH KAKASAHEB
KAKASAHEB BHALERAO
BHALERAO Date:
2026.08.20
Mr. Devendra Jain a/w Shashank Mehta, Saukhya
18:26:41
+0530 Lakade, Advocates for the Petitioner.
Mr. Vikas Khanchandani, Advocate for the
Revenue/Respondents.
CORAM: B. P. COLABAWALLA &
FARHAN P. DUBASH, JJ.
DATE: AUGUST 18, 2026
P. C.
1. The above Writ Petition is filed seeking the following
reliefs:-
“(a) that this Hon’ble Court may be pleased to issue a Writ of
Certiorari or a Writ in the nature of Certiorari or any other
appropriate Writ, Order or direction, calling for the records of
the Petitioner’s case and after going into the legality and
propriety thereof, to quash and set aside the orders passed under
section 148A(d) of the Act dated 06.04.2022 (for AY 2018-19)
[Exhibit A2] and dated 21.03.2023 (for AY 2019-20) [Exhibit
B2]; the notice issued under section 148 of the Act dated
06.04.2022 (for AY 2018-19) [Exhibit A3] and dated 26.03.2023
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(for AY 2019-20) [Exhibit B4], the orders of re-assessment dated
08.12.2023 passed under section 147 read with section 144 of the
Act [Exhibit C1 & D1], the notices of demand dated 08.12.2023
issued under section 156 of the Act [Exhibit C2 & D2]; for the
relevant Assessment Years 2018-19 and 2019-20, respectively and
the order dated 24.03.2026 rejecting the stay application of the
Petitioner [Exhibit J4] and declare section 147A as
unconstitutional and ultra vires Article 14 of the Constitution of
India
(b) This Hon’ble Court be pleased to issue a Writ of Mandamus or a
Writ in the nature of Mandamus or any other appropriate Writ,
Order or direction, directing the Respondents, its servants,
subordinates, agents and successors in office to;
i) Quash the the orders passed under section 148A(d) of
the Act dated 06.04.2022 (for AY 2018-19) [Exhibit
A2] and dated 21.03.2023 (for AY 2019-20) [Exhibit
B2]; the notice issued under section 148 of the Act
dated 06.04.2022 (for AY 2018-19) [Exhibit A3] and
dated 26.03.2023 (for AY 2019-20) [Exhibit B4], the
orders of re-assessment dated 08.12.2023 passed under
section 147 read with section 144 of the Act [Exhibit
C1 & D1], the notices of demand dated 08.12.2023
issued under section 156 of the Act [Exhibit C2 & D2];
for the relevant Assessment Years 2018-19 and 2019-
20 and the order dated 24.03.2026 rejecting the stay
application of the Petitioner [Exhibit J4]
ii) to forthwith forbear from taking any steps whatsoever,
including issue further notices in furtherance of the the
orders of the re-assessment dated 08.12.2023 passed
under section 147 read with section 144 of the Act
[Exhibit C1 & D1], the notices of demand dated
08.12.2023 issued under section 156 of the Act [Exhibit
C2 & D2]; for the relevant Assessment Years 2018-19
and 2019-20, respectively;
iii) To refund the recovery made in excess of 5% of the
impugned tax demand for the relevant Assessment
Years.
(c) That this Hon’ble Court be pleased to issue a writ of prohibition
or a writ in the nature of prohibition or any other appropriate
writ, order or direction under Article 226 of the Constitution of
India prohibiting Respondents from taking any steps in
furtherance of the re-assessment dated 08.12.2023 passed under
section 147 read with section 144 of the Act [Exhibit C1 & D1],
the notices of demand dated 08.12.2023 issued under section 156
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of the Act [Exhibit C2 & D2]; for the relevant Assessment Years
2018-19 and 2019-20, respectively;”
2. Mr. Jain, the learned advocate appearing on behalf of the
Petitioner fairly stated that for both the Assessment Years 2018-19 and
2019-20 the Petitioner Credit Society has already filed an Appeal before
Respondent No.5 [the Commissioner of Income Tax (Appeals), National
Faceless Appeal Centre]. He submitted that in fact the Credit Society
was pressured into opening an overdraft account and from which a sum
of Rs.2 Crores has been recovered against the alleged outstanding
demand of approximately Rs.9.94 Crores. It is also the case of the
Petitioner that no recovery could have been made from an overdraft
account as held by the decision of this Court. Be that as it may, he
submitted that since the Department has already recovered a sum of
Rs.2 Crores and the balance demand has been stayed, he requests that
the Petitioner being a small Credit Society, the 5 th Respondent be
directed to hear and decide the Appeal filed by the Petitioner for
A.Y.2018-19 as well as 2019-20 as expeditiously as possible.
3. Considering the facts and circumstances narrated earlier,
we find that this is a fit case where we direct the 5 th Respondent to
decide the Appeal of the Petitioner in a time bound manner. We have
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said this because apart from the challenge on merits, it is the case of the
Petitioner Credit Society that for A.Y.2018-19 the sanction granted
under Section 151 is by a wrong authority which itself would make the
reassessment proceedings bad in law. As far as A.Y.2019-20 is
concerned, the sanction/approval though granted by the correct
authority does not bear a “Document Identification Number” (DIN) and
which is mandatory as held by certain decisions of this Court. If in fact
what the Credit Society contends is true then we do not see any
impediment in the 5th Respondent disposing of the Appeals in a time
bound manner, especially taking into consideration the issues raised.
4. We accordingly direct that the 5th Respondent shall hear the
Appeals of the Petitioner for A.Y.2018-19 as well as A.Y.2019-20 as
expeditiously as possible, and in any event within a period of 12 weeks
from the date of this order being brought to the attention of the 5 th
Respondent.
5. We are informed that some additional grounds have also
been filed in the aforesaid Appeals. It is needless to clarify that all
grounds shall be considered by the 5th Respondent while deciding the
Appeals of the Petitioner.
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6. It is also needless to clarify that in the event the Petitioner
succeeds in the Appeals, the amount of Rs.2 Crores recovered from the
Petitioner shall be refunded with applicable interest, if any.
7. Since the Appeals are before the National Faceless Appeal
Centre, the Petitioner shall forward a copy of his Appeals along with the
additional grounds, if any, along with a copy of this order, to the 1 st
Respondent (Jurisdictional Assessing Officer) who shall then forward
the same to the 5th Respondent.
8. The Writ Petition is accordingly disposed of. However,
there shall be no order as to costs.
9. This order will be digitally signed by the Private Secretary/
Personal Assistant of this Court. All concerned will act on production by
fax or email of a digitally signed copy of this order.
[FARHAN P. DUBASH, J.] [B. P. COLABAWALLA, J.]
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