PRADEEP MITTAL, SON OF SHRI ANAND SHANKAR MITTAL vs. ASSISTANT COMMISSIONER OF INCOME TAX

Facts

These are a batch of writ petitions filed by various assessees, including Pramod Jain, Chandra Prakash Agroya, Nand Kishore Jain, and others, against the Assistant Commissioner of Income Tax. The petitions primarily challenge the initiation of proceedings under Section 153C of the Income Tax Act, 1961, for Assessment Year 2014-15, and the notices issued thereunder, as well as Objection Disposal Orders. The petitioners seek to quash these proceedings and any consequential assessment orders. The core of the dispute revolves around the validity and limitation of proceedings initiated under Section 153C.

Held

The Rajasthan High Court, Jaipur Bench, held that since the narrow compass of the issue concerning Section 153C of the Income Tax Act, 1961, is directly being adjudicated by the Hon'ble Apex Court in 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. Consequently, 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 or giving effect to any impugned orders, for as long as the interim protection granted by the Hon'ble Apex Court continues. The outcome of the SLP shall govern the outcome of these petitions. No specific finding was given on the merits of the Section 153C proceedings themselves, as the matter was stayed pending the Apex Court's decision.

Key Issues

1. Whether the initiation of proceedings under Section 153C of the Income Tax Act, 1961, for AY 2014-15 is without jurisdiction and barred by limitation? Assessee's Contention: The learned counsel for the petitioners argued that the proceedings under Section 153C are without jurisdiction and barred by limitation. They submitted that the controversy is presently under consideration before the Hon'ble Apex Court in Siddharth Totuka Vs. Assistant Commissioner of Income Tax Central Circle in SLP No. 31711/2025. They further stated that the Hon'ble Apex Court has stayed proceedings before the Adjudicating Authority concerning Section 153C and prayed for similar protection. The outcome of these petitions, they submitted, should be governed by the outcome of the said SLP. Revenue's Contention: The learned counsel for the respondents 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.