H L BUILDWELL PRIVATE LIMITED vs. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 2, LUDHIANA AND ORS

Facts

The petitioner, H L Buildwell Private Ltd., filed a writ petition (CWP No. 2210 of 2026) challenging notices dated 12.04.2022 and an appellate order dated 28.10.2025 passed by the Commissioner of Income-tax (Appeals)-5, Ludhiana. The respondents are the Deputy Commissioner of Income Tax and others. The case came before the High Court of Punjab & Haryana at Chandigarh. The parties agreed that the issue in the present petition had already been decided in the petitioner's favor by a Division Bench of the same High Court in a previous judgment.

Held

The High Court held that the issue raised in the present petition stands decided in favor of the petitioner by a recent judgment of a Division Bench of the same Court dated 06.05.2026 in CWP No.37049 of 2025 – H L Buildwell Pvt. Ltd. Vs. Deputy Commissioner of Income Tax and others. Based on this consensus between the parties, the Court allowed the present petition. Consequently, the impugned notices dated 12.04.2022 and the appellate order dated 28.10.2025, passed by the Commissioner of Income-tax (Appeals)-5, Ludhiana, were set aside. The ratio decidendi is that if a matter has been decided by a coordinate bench of the same High Court, subsequent petitions raising identical issues should follow the precedent, leading to the allowance of the petition.

Key Issues

1. Whether the issue raised in the writ petition stands decided by a previous judgment of the High Court? (Question of law). The petitioner contended that the issue has been decided in their favor by a Division Bench of the High Court in a lead case, H L Buildwell Pvt. Ltd. Vs. Deputy Commissioner of Income Tax and others, decided on 06.05.2026. The revenue, through its learned Senior Standing Counsel, agreed with the petitioner's submission regarding the applicability of the previous judgment.