KANARAM BHAMBHI S/O SHRI GULAB CHAND BHAMBHI vs. DEPUTY COMMISSIONER OF INCOME TAX (BENAMI PROHIBITION)

CW/12206/2019HC RajasthanRJHC02062167201909 August 2019Bench: ALOK SHARMA2 pages

AI SummaryRemanded

What did the High Court hold?

The High Court held that the issue agitated in the writ petition was fully covered by its previous judgment in Niharika Jain & Ors. Versus Union of India & Ors. (supra). Consequently, the Court disposed of the writ petition. The directions issued by the Court in the Niharika Jain case were to apply mutatis mutandis to the petitioners' case. As a result, the notice dated July 3, 2019, and the order under Section 24(3) of the Prohibition of Benami Property Transaction Act, 1988, passed on July 9, 2019, were quashed and set aside. The Court did not expressly leave any issue undecided.

What were the facts?

The petitioners, Kanaram Bhambhi and Shree Cement Limited, filed a writ petition before the Rajasthan High Court challenging a notice dated July 3, 2019, and an order under Section 24(3) of the Prohibition of Benami Property Transaction Act, 1988, passed on July 9, 2019. The respondents were the Deputy Commissioner of Income Tax (Benami Prohibition), the Additional Commissioner of Income Tax (Benami Prohibition), and the Union of India. The petitioners contended that the issue in their petition was fully covered by a previous judgment of the same court in Niharika Jain & Ors. Versus Union of India & Ors. The revenue's counsel could not dispute this contention.

What were the issues?

1. Whether the issue agitated in the writ petition is covered by the judgment of this Court in Niharika Jain & Ors. Versus Union of India & Ors. (SBCWP No. 2915/2019) decided on July 12, 2019? Assessee's Contention: The petitioners argued that the issue raised in their writ petition is identical to and fully covered by the aforementioned judgment of this Court in Niharika Jain & Ors. (supra). Revenue's Contention: The respondents' counsel was not in a position to dispute that the issue agitated in the petition was fully covered by the judgment in Niharika Jain & Ors. (supra).

Which sections of the Income-tax Act were involved?

Section 24(3)

AI-generated summary — verify with the full judgment below

HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR S.B. Civil Writ Petition No. 12206/2019 1. Kanaram Bhambhi S/o Shri Gulab Chand Bhambhi, Aged About 42 Years, R/o Kumawaton Ka Mohalla, Village- Govindgarh, Tehsil- Pisangan, District Ajmer-305201 2. Shree Cement Limited, Having Registered Office At Bangur Nagar, Beawar-305901, Rajasthan, Through Its Joint President (Commercial), Shri Arvind Khicha S/o Shri Indermal Khicha, Aged About 56 Years, R/o 5-6, Nanesh Nagar, Near Jawahar Bhawan, Vinod Nagar, Beawar- 305901. ----Petitioners Versus 1. Deputy Commissioner Of Income Tax (Benami Prohibition), Having Its Office At New Central Revenue Building, Statue Circle, C-Scheme, Jaipur- Rajasthan. 2. Additional Commissioner Of Income Tax (Benami Prohibition), Having Its Office At New Central Revenue Building, Statue Circle, C-Scheme, Jaipur-Rajasthan. 3. Union Of India, Through The Secretary, Ministry Of Finance, Department Of Revenue, North Block, New Delhi. ----Respondents For Petitioner(s) : Mr. Anant Kasliwal For Respondent(s) : Mr. Nikhil Simlote for Mr. RB Mathur HON'BLE MR. JUSTICE ALOK SHARMA Order 09/08/2019 Mr. Anant Kasliwal, counsel for the petitioners submits that the issue agitated in this petition is fully covered by the judgment of this Court in the case of Niharika Jain & Ors. Versus

(2 of 2) [CW-12206/2019] Union of India & Ors. (SBCWP No. 2915/2019) and other connected mattes; decided on 12th July, 2019. Mr. Nikhil Simlote for Mr. RB Mathur, counsel for the respondents is not in a position to dispute that the issue agitated in this petition is fully covered by the judgment of this Court in the case of Niharika Jain & Ors. (supra). In view of the submissions made by counsel for the parties, this writ petition is disposed of. The direction of this Court in the case of Niharika Jain & Ors. (supra) shall apply mutatis- mutandis to the case of the petitioners. The notice dated 3.7.2019 and the order under Section 24(3) of the Prohibition of Benami Property Transaction Act, 1988 passed on 9.7.2019 shall stand consequently quashed and set-aside. (ALOK SHARMA),J DILIP KHANDELWAL

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