GORDHAN DAS MAHESHWARI SON OF SHRI GOPAL LAL MAHESHWARI vs. ASSISTANT COMMISSIONER OF INCOME TAX

Facts

The petitioners, including Nand Kishore Jain, Shyam Sunder Khandelwal, Vijay Kumar Mehta, and others, filed multiple writ petitions before the Rajasthan High Court, Jaipur Bench. These petitions challenged proceedings initiated under Section 153C of the Income Tax Act, 1961, and related notices and orders. The core of the dispute involved the validity and limitation of these proceedings. The petitioners sought to quash the notices and orders, arguing they were without jurisdiction and barred by limitation. The respondent was the Assistant Commissioner of Income Tax, Central Circle-4, Jaipur. The High Court noted that the issue was identical to a matter previously decided by a co-ordinate bench in 'Pramod Jain Vs. Assistant Commissioner of Income Tax' and that the Supreme Court had stayed proceedings concerning Section 153C in a related case, 'Siddharth Tuka Vs. Assistant Commissioner of Income Tax'.

Held

The High Court held that since the issue concerning Section 153C of the Income Tax Act, 1961, was directly under adjudication by the Hon'ble Apex Court in SLP No. 31711/2025 (tagged with SLP(C) No. 33392/2025), 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, nor give effect to any consequential order(s) or impugned orders, for as long as the interim protection granted by the Hon'ble Apex Court continues. The outcome of the aforementioned SLP was declared to govern the outcome of the present petitions. No specific finding was given on the merits of the individual cases, as the petitions were disposed of based on the Supreme Court's interim order.

Key Issues

1. Whether the initiation of proceedings under Section 153C of the Income Tax Act, 1961, for Assessment Year 2014-15 was without jurisdiction and barred by limitation, and consequently, whether the Notice dated 28.01.2025 issued under Section 153C should be quashed? 2. Whether the Objection Disposal Order dated 06.10.2025 was liable to be quashed? 3. Whether any consequential proceedings or Assessment Orders passed during the pendency of the writ petition should be quashed? Assessee's Contentions: The petitioners argued that the proceedings under Section 153C were without jurisdiction and barred by limitation. They relied on the Supreme Court's order in Siddharth Tuka Vs. Assistant Commissioner of Income Tax, which stayed proceedings under Section 153C, including impugned orders passed by the High Court. They sought similar protection and argued that the outcome of their petitions should be governed by the Supreme Court's decision. Revenue's Contentions: The respondent, Assistant Commissioner of Income Tax, fairly submitted that the order passed by the Hon'ble Apex Court would be duly followed and that the petition, if disposed of, should be made subject to the final outcome of the aforesaid SLP.