Bihar State Power (Holding) Company Limited, vs The Income Tax Officer,

IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.8252 of 2026
======================================================
Bihar State Power (Holding) Company Limited, a Government Company
incorporated under the provisions of the Companies Act, 1956 having its
registered office at Vidyut Bhawan, Bailey Road, Patna 800001, through its
Manager Finance namely Arvind Kumar, aged about 53 years, Son of
Ramanand Mishra, permanent resident of New Colony, Shubhankarpur, P.O.
Darbhanga, P.S. Darbhanga Town, District Darbhanga, PIN Code 846 006,
Bihar.
... ... Petitioner
Versus
1. The Income Tax Officer, Ward-2(1), Patna having office at Lok Nayak
Bhawan, Dak Bungalow Road, Patna - 800001.
2. The Principal Chief Commissioner of Income Tax, Bihar and Jharkhand
Region, Central Revenue Building, Bir Chand Patel Path, Patna.
... ... Respondents
======================================================
Appearance :
For the Petitioner : Mr. Ajay Kumar Rastogi, Senior Advocate
Mr. Anubhav Khowala, Advocate
Ms. Smriti Singh, Advocate
For the Respondents : Mrs. Archana Sinha @ Archana Shahi, Senior SC
Ms. Rani Singh, Advocate
Mr. Manish Kumar Parwan, Advocate
======================================================
CORAM: HONOURABLE MR. JUSTICE RAJEEV RANJAN PRASAD
and
HONOURABLE MR. JUSTICE SUNIL DUTTA MISHRA
ORAL JUDGMENT
(Per: HONOURABLE MR. JUSTICE RAJEEV RANJAN PRASAD)
Date : 22-09-2026

Heard Mr. Ajay Kumar Rastogi, learned Senior Counsel
assisted by Mr. Anubhav Khowala, learned counsel for the
petitioner and Ms. Archana Sinha, learned Senior Standing
Counsel for the Department of Income Tax.
2. The petitioner in the present writ application has
prayed for the following reliefs:-

Patna High Court CWJC No.8252 of 2026 dt.22-09-2026
2/8
“ ) For issuance of an appropriate writ, order or ⅰ
direction the nature of Mandamus directing the
Respondent No.1 to consider and dispose of the
Petitioner's rectification application dated
02.04.2025 filed vide letter no. 1011 under
Section 154 of the Income Tax Act, 1961 ("the
Act") for Assessment Year 2012-13 ("the
Relevant A.Y.") in accordance with law and after
considering the law laid down by the Hon'ble
Supreme Court in CIT v. Maruti Suzuki India
Ltd. reported in (2020) 416 ITR 613 (SC) and
CBDT Circular No.68 dated 17.11.1971.
Copy of the rectification application filed by the
Petitioner vide letter no. 1011 dated 02.04.2025
is annexed and marked as Annexure-Pl.
ii) For issuance of an appropriate writ, order or
direction restraining the Respondents from
taking any coercive steps pursuant to Notice
dated 08.05.2026 ("Recovery Notice") issued by
Respondent No.1 directing payment of
outstanding demand of Rs.29,23,94,340/- for the
Relevant A.Y., till consideration of the
rectification application filed by the Petitioner
under Section 154 of the Act and/or till the next
effective date of hearing of the Petitioner's
appeal before the learned Income Tax Appellate
Tribunal, Patna Bench, Patna ("Ld. ITAT”) in
ITA No. 14/Pat/2023.
Copy of the Notice dated 08.05.2026 issued by
Respondent No.1 is annexed and marked as
Annexure-P2.
iii) For issuance of an appropriate writ, order or
direction taking note of the substantial
jurisdictional issue arising from continuation of
proceedings in the name of erstwhile Bihar State

Patna High Court CWJC No.8252 of 2026 dt.22-09-2026
3/8
Electricity Board ("BSEB") after its dissolution
w.e.f. 01.11.2012, which issue is presently
pending consideration before the learned Income
Tax Appellate Tribunal, Patna Bench, Patna in
ITA No.14/Pat/2023 as also before Respondent
No.1 by way of rectification application dated
02.04.2025 filed vide letter no.1011 under
Section 154 of the Act.
iv) For issuance of any other appropriate writ,
order, or direction which this Hon’ble Court
may deem fit and proper in the facts and
circumstances of the present case.”
3. In course of his submissions before this Court, Mr.
Rastogi, learned Senior Counsel for the petitioner submits that the
order under Section 154 of the Income Tax Act, 1961 (hereinafter
referred to as the ‘I.T. Act’) dated 10.02.2022 pertaining to the
assessment year 2012-13 has been made in the name of M/s Bihar
State Electricity Board.
4. Referring to the notification of the Department of
Energy, Government of Bihar dated 30.10.2012 as contained in
Annexure ‘P3’, learned Senior Counsel submits that by virtue of
the power conferred by Sections 131, 133 and other applicable
provisions of the Electricity Act, 2003, the Government of Bihar
has made a scheme whereunder the properties, interests, rights,
assets, liabilities, obligations, proceedings and personnel of the
Bihar State Electricity Board have been transferred to the

Patna High Court CWJC No.8252 of 2026 dt.22-09-2026
4/8
transferees. The transferees are defined under paragraph ‘2 (p)’ of
the said scheme. The Bihar State Power (Holding) Company
Limited, Bihar State Power Generation Company Limited, Bihar
State Power Transmission Company Limited, South Bihar Power
Distribution Company Limited, North Bihar Power Distribution
Company Limited are the transferees.
5. Learned Senior Counsel submits on the strength of the
judgment of the Hon’ble Supreme Court in the case of Principal
Commissioner of Income Tax, New Delhi Vs. Maruti Suzuki
(India) Limited reported in (2020) 18 SCC 331 that the
assessment order passed by the Assessing Officer in the name of a
non-existent entity would be void ab initio .
6. It is submitted that the order under Section 154 of the
I.T. Act dated 10.02.2022 is under challenge before the learned
Income Tax Appellate Tribunal. Earlier, the learned Tribunal had
heard the matter but because the judgment could not be delivered
within a period of 90 days, the case was released vide order dated
th
27 February 2026. It is submitted that the hearing of the appeal
th
has again been taken on and it was lastly heard on 25 August
2026.
7. It is submitted that, in the meantime, as advised, the
petitioner has filed a petition under Section 154 for the

Patna High Court CWJC No.8252 of 2026 dt.22-09-2026
5/8
rectification of mistake in assessment order dated 02.02.2015,
initiation of proceeding under Section 147/148 vide notice dated
30.03.2017, assessment order under Section 143(3)/147 dated
30.12.2017, order under Section 271(1)(c) dated 15.06.2018 and
order under Section 154 dated 24.01.2020, notices dated
28.06.2012, 17.08.2021 and 06.10.2021 under Section 154 and
order under Section 154 dated 10.02.2022 for the assessment year
2012-13. The main contention of the petitioner before the Income
Tax Officer is that the aforementioned orders have been passed
and the notices issued were in the name of the non-existent entity.
8. Prayer of learned Senior Counsel for the appellant is
to issue a direction to the Income Tax Officer Ward-2(1), Patna to
consider the petition dated 02.04.2025 (Annexure ‘P1’).
9. In course of hearing of the matter, this Court has been
informed that the issue raised in the rectification application vide
Annexure ‘P1’ have also been raised before the learned Income
Tax Appellate Tribunal and the same is pending consideration with
other issues raised by the petitioner.
10. It is, however, submitted that during pendency of the
matter before the Appellate Tribunal, the petitioner is getting
demand notices and coercive action have been threatened. In this
connection, attention of this Court has been drawn towards the

Patna High Court CWJC No.8252 of 2026 dt.22-09-2026
6/8
request for payment of outstanding tax demand vide Annexure
‘P2’. There is stipulation in Annexure ‘P2’ that failure to comply
will invite necessary action as per the I.T. Act. It is submitted that
even recently, the petitioner has brought to the notice of the
Income Tax Officer vide Letter No. 1106 dated 11.05.2026 certain
directions of the Central Board of Direct Taxes (CBDT) and has
requested for passing the rectification orders.
11. The writ application has been opposed by Ms.
Archana Sinha, learned Senior Standing Counsel for the
Department of Income Tax. It is submitted that the issues being
raised before this Court by the petitioner are pending consideration
before the learned Income Tax Appellate Tribunal. The learned
Tribunal is in seisin of the matter, therefore, at this stage, if the
writ application is entertained and an order is passed, it would
amount to usurping the role of the learned Tribunal which is not
required.
12. So far as the submission of learned Senior Counsel
for the petitioner that coercive action is being taken to realise the
demand is concerned, learned Senior Standing Counsel for the
Department has submitted that the petitioner may apply for an
appropriate interim order before the learned Tribunal and also
before the Assessing Officer.

Patna High Court CWJC No.8252 of 2026 dt.22-09-2026
7/8
13. To this, Mr. Rastogi, learned Senior Counsel has
responded saying that there is already an application for interim
order before the Assessing Officer but that has not been considered
and in the meantime, coercive steps are being taken.
14. Having heard learned Senior Counsel for the parties,
this Court is of the considered opinion that sitting in its
extraordinary writ jurisdiction, this Court need not entertain a
challenge to the rectification order on the ground stated in
Annexure ‘P1’ or in Annexure ‘P12’ at this stage. It is an admitted
position that the legality and validity of the assessment order
(Annexure ‘P6’) dated 10.02.2022 is pending consideration before
the learned Income Tax Appellate Tribunal. Any observation of
this Court at this stage is likely to interfere with the independent
assessment and opinion of the learned Tribunal, therefore, this
Court would refrain from doing so.
15. So far as the threat of taking of coercive action
against the petitioner for release of the demand is concerned, this
Court directs the Assessing Officer/Income Tax Appellate
Tribunal, as the case may be, to consider the application of the
petitioner for an interim order within a period of six weeks from
the date of receipt/production of a copy of this judgment. In the

Patna High Court CWJC No.8252 of 2026 dt.22-09-2026
8/8
meantime, no coercive action, in any form, shall be taken against
the petitioner.
16. This writ application stands disposed of accordingly.
(Rajeev Ranjan Prasad, J)
(Sunil Dutta Mishra, J)
lekhi/-
AFR/NAFR
CAV DATE
Uploading Date 22.09.2026
Transmission Date