MAHENDRA TRAMBAKLAL FEFAR vs. ASST. COMMISSIONER OF INCOME TAX, CIRCLE 1(1)

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SCA/13358/2021HC GujaratGJHC24049157202127 June 2022Bench: HONOURABLE MR. JUSTICE N.V.ANJARIA,HONOURABLE MR. JUSTICE BHARGAV D. KARIA2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court granted permission to withdraw the Special Civil Application. The court clarified that the time spent in prosecuting the present petition would be treated as bona fide litigation and would not be counted for the purpose of limitation in the proposed appeal against the order dated September 24, 2021. The court explicitly stated that it had not expressed any opinion or gone into any aspects on the merits of the petition. The petition was disposed of as withdrawn.

What were the facts?

The petitioner, Mahendra Trambaklal Fefar, filed a Special Civil Application before the Gujarat High Court challenging a notice issued under Section 153C and a satisfaction recorded by the Assistant Commissioner of Income Tax to initiate proceedings under Section 153C. The petitioner also challenged a show cause notice dated August 17, 2021. During the pendency of the petition, the competent authority passed an order dated September 24, 2021, under Section 143(3) read with Section 153C of the Income Tax Act, which was served on the petitioner. The petitioner's counsel informed the court that the petitioner wished to withdraw the present petition to avail the remedy of appeal against the order dated September 24, 2021.

What were the issues?

1. Whether the notice issued under Section 153C and the satisfaction recorded by the respondent to initiate proceedings under Section 153C are liable to be quashed? (Question of law) 2. Whether the show cause notice dated August 17, 2021, is liable to be quashed? (Question of law) The petitioner argued for the quashing of the Section 153C notice and the satisfaction recorded, as well as the show cause notice. The revenue's contentions are not recorded in the judgment as the matter was withdrawn before arguments on merits.

Which sections of the Income-tax Act were involved?

Section 153C,Section 143(3)

AI-generated summary — verify with the full judgment below

C/SCA/13358/2021 ORDER DATED: 27/06/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/SPECIAL CIVIL APPLICATION NO. 13358 of 2021 ========================================================== MAHENDRA TRAMBAKLAL FEFAR Versus ASST. COMMISSIONER OF INCOME TAX, CIRCLE 1(1) ========================================================== Appearance: MR MANISH J SHAH(1320) for the Petitioner(s) No. 1 M R BHATT & CO.(5953) for the Respondent(s) No. 1,2 MS MAITHILI D MEHTA(3206) for the Respondent(s) No. 1,2 ========================================================== CORAM:HONOURABLE MR. JUSTICE N.V.ANJARIA and HONOURABLE MR. JUSTICE BHARGAV D. KARIA

Date : 27/06/2022

ORAL ORDER (PER : HONOURABLE MR. JUSTICE N.V.ANJARIA) This petition was filed by the petitioner seeking the following prayers, “(i) to call for the records of the proceedings, look into them and be pleased to issue a writ of certiorari or any other appropriate writ, order or direction quashing the impugned 153C notice at Annexure-C and satisfaction recorded by Respondent to initiate proceedings u/s. 153C as reproduced in letter dated 03.08.2021; (ii) to call for the records of the proceedings, look into them and be pleased to issue a writ of certiorari or any other appropriate writ, order or direction quashing the impugned show cause notice dated 17.08.2021;” 2. Today, when the petition came up for consideration, learned Page 1 of 2

C/SCA/13358/2021 ORDER DATED: 27/06/2022 advocate Mr. Manish Shah for the petitioner stated that now the competent authority has passed order dated 24.9.2021 under section 143(3) read with section 153C of the Income Tax Act and that the said order is also served on the petitioner-assesse. 3. Having regard to the above developments during the pendency of the petition, learned advocate for the petitioner stated that he has instructions from the petitioner to withdraw the present petition as the petitioner would opt to avail the remedy of appeal against the aforesaid order dated 24.9.2021. 4. The permission is granted to withdraw the petition reserving liberty for the petitioner to avail the appellate remedy. The petition stands disposed of as withdrawn. 5. At this stage, learned advocate for the petitioner further submitted that since the order was passed on 24.9.2021, the appeal may be treated as time barred. We clarify that the time spent in prosecuting the present Special Civil Application shall be treated as bona fide litigation to be not counted for the purpose of limitation in the proposed appeal. We further clarify that we have not expressed nor gone into any of the aspects on merits of the petition. (N.V.ANJARIA, J) (BHARGAV D. KARIA, J) C.M. JOSHI Page 2 of 2

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