CHANDRA PRAKASH AGROYA, S/O LATE SHRI BANSI LAL AGROYA vs. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-04

Facts

The petitioner, Chandra Prakash Agroya, filed a writ petition before the High Court of Judicature for Rajasthan, Bench at Jaipur. The petition challenged proceedings initiated under Section 153C of the Income Tax Act, 1961, and an Objection Disposal Order. The respondent is the Assistant Commissioner of Income Tax, Circle-04, Jaipur. The petitioner sought to declare the initiation of proceedings under Section 153C for Assessment Year 2014-15 as without jurisdiction and barred by limitation, and to quash the notice dated 28.01.2025 issued under Section 153C, as well as the Objection Disposal Order dated 06.10.2025 and any consequential assessment orders. The High Court noted that a co-ordinate bench had already considered and decided an identical issue in 'Pramod Jain Vs. Assistant Commissioner of Income Tax'.

Held

The High Court held that since the narrow compass of the issue was directly being adjudicated by the Hon'ble Apex Court in the matter of Siddharth Totuka (SLP No. 31711/2025), it would be appropriate to dispose of the present writ petitions by extending the same protection as granted by the Hon'ble Apex Court. Accordingly, the Court directed that the Adjudicating Authority shall not proceed with any proceedings under Section 153C of the Income Tax Act, 1961, against the petitioners, including consequential orders and giving effect to any impugned orders, for as long as the interim protection granted by the Hon'ble Apex Court continues. The outcome of SLP No. 31711/2025 (tagged with SLP(C) No. 33392/2025) shall govern the outcome of the present petitions. The writ petitions were disposed of on this basis. No specific issue was left undecided, but the final decision on the merits of the Section 153C proceedings is deferred pending the Apex Court's decision.

Key Issues

1. Whether the initiation of proceedings under Section 153C of the Income Tax Act, 1961, for Assessment Year 2014-15 is without jurisdiction and barred by limitation, and consequently, whether the Notice dated 28.01.2025 issued under Section 153C and the Objection Disposal Order dated 06.10.2025 are liable to be quashed? Assessee's Contentions: The petitioner argued that the proceedings under Section 153C are without jurisdiction and barred by limitation. They relied on the fact that the controversy was under consideration before the Hon'ble Apex Court in Siddharth Totuka Vs. Assistant Commissioner of Income Tax Central Circle (SLP No. 31711/2025), where proceedings before the Adjudicating Authority concerning Section 153C were stayed. 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 Contentions: The respondent counsel fairly submitted that the order passed by the Hon'ble Apex Court shall be duly followed and that the petitions, if disposed of, may be made subject to the final outcome of the aforesaid SLP.