ASHOK PARWAL (AY 2014-15) S/O SHRI RADHEY SHYAM PARWAL vs. ASSISTANT COMMISSIONER OF INCOME TAX

Facts

The petitioner, Ashok Parwal, filed a writ petition seeking to quash a show cause notice dated 06.02.2025 and a consequential order dated 21.11.2025, both issued by the Assistant Commissioner of Income Tax, Central Circle, Jaipur, under Section 153C of the Income Tax Act, 1961. The assessment year in question is 2014-15. Both the petitioner and the respondent agreed that the matter involved a similar controversy to one already disposed of by the High Court on 09.03.2026 in D.B. CWP No.1486/2026. This prior order was based on an interim order from the Hon'ble Apex Court in Siddharth Totuka Vs. Assistant Commissioner of Income Tax Central Circle, SLP No. 31711/2025, which had stayed proceedings concerning Section 153C.

Held

The Tribunal held that since the Hon'ble Apex Court was directly adjudicating the narrow compass of the issue concerning Section 153C of the Income Tax Act, 1961, it would be appropriate to dispose of the present writ petition by extending the same protection as granted by the Hon'ble Apex Court. The Tribunal directed that the Adjudicating Authority shall not proceed with any proceedings under Section 153C of the Income Tax Act, 1961, against the petitioner, nor give effect to any consequential orders, for as long as the interim protection granted by the Hon'ble Apex Court continues to operate. The outcome of SLP No. 31711/2025 (tagged with SLP(C) No. 33392/2025) shall govern the outcome of the present petition. The writ petition was disposed of accordingly.

Key Issues

1. Whether the proceedings before the Adjudicating Authority, insofar as they pertain to Section 153C of the Income Tax Act, 1961, including the impugned order, should be stayed in light of the interim protection granted by the Hon'ble Apex Court in a related matter. Assessee's Contention: The petitioner argued that the controversy in the present matter is under consideration before the Hon'ble Apex Court in Siddharth Totuka Vs. Assistant Commissioner of Income Tax Central Circle, SLP No. 31711/2025. They relied on the Apex Court's order dated 08.12.2025, which stayed proceedings before the Adjudicating Authority concerning Section 153C of the Income Tax Act, 1961. The petitioner prayed for similar protection and submitted that the outcome of their petition should be governed by the outcome of the said SLP. Revenue's Contention: The respondent fairly submitted that the order passed by the Hon'ble Apex Court shall be duly followed and that the petition, if disposed of, should be made subject to the final outcome of the aforesaid SLP.