LATE PREM CHAND DHANDIA vs. ASSISTANT COMMISSIONER OF INCOME TAX

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CW/2601/2026HC RajasthanRJHC02011743202610 February 2026Author: SANJEEV PRAKASH SHARMA,SANGEETA SHARMA3 pages
AI SummaryRemanded

What did the High Court hold?

The High Court, considering the submissions of both parties, held that the controversy in the present petition was identical to that being adjudicated by the Hon'ble Apex Court in Siddharth Totuka (SLP No. 31711/2025) concerning Section 153C of the Income Tax Act, 1961. Therefore, it was appropriate to dispose of the present writ petitions by extending the same protection as granted by the Hon'ble Apex Court. 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 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 accordingly.

What were the facts?

The petitioner, Late Prem Chand Dhandia (through legal heirs), filed a writ petition before the Rajasthan High Court, Jaipur Bench, challenging an action by the Assistant Commissioner of Income Tax, Central Circle-4, Jaipur. The case was listed for hearing on 10/02/2026. The High Court noted that a coordinate bench had previously dealt with similar matters in "Pramod Jain vs. Assistant Commissioner of Income Tax" (D.B. Civil Writ Petition No. 18359/2025) decided on 27.01.2026. In that prior case, the High Court had referred to an order of the Hon'ble Apex Court in "Siddharth Totuka Vs. Assistant Commissioner of Income Tax Central Circle" (SLP No. 31711/2025) dated 08.12.2025, which had stayed proceedings concerning Section 153C of the Income Tax Act, 1961.

What were the issues?

1. Whether the proceedings before the Adjudicating Authority, concerning Section 153C of the Income Tax Act, 1961, including the impugned order, should be stayed in light of the Hon'ble Apex Court's order in Siddharth Totuka (SLP No. 31711/2025)? Assessee's Contention: The petitioner argued that the Hon'ble Apex Court had stayed proceedings concerning Section 153C of the Income Tax Act, 1961, in the Siddharth Totuka case. Therefore, similar protection should be extended to the present petitions, and the outcome should be governed by the Apex Court's decision. Revenue's Contention: 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 disposal of the present petitions should be made subject to the final outcome of the aforesaid SLP.

Which sections of the Income-tax Act were involved?

Section 153C

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
[2026:RJ-JP:6107-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Civil Writ Petition No. 2601/2026 Late Prem Chand Dhandia, Through Legal Heir Late Smt Indra Kumari Dhandia Through Legal Heir Shri Rajiv Dhandia R/o Room No-Ii, C-56, Garden House, Mahaveer Marg, C-Scheme, Jaipur Through Authorised Signatory Shri Mohan Singh Chauhan, S/o Shri Budh Singh Chauhan, R/o 101A, Rameshwar Dham, Murlipura Scheme, Jaipur- 302039 ----Petitioner Versus Assistant Commissioner Of Income Tax, Central Circle- 4, Jaipur Having Its Address At 4Th Floor, Jeevan Nidhi-2, Lic Building, Ambedkar Circle, Jaipur. ----Respondent For Petitioner(s) : Ms. Satwika Jha for Mr. Siddharth Ranka For Respondent(s) : Mr. Siddharth Bapna with Ms. Tanushka Saxena HON'BLE THE ACTING CHIEF JUSTICE MR. SANJEEV PRAKASH SHARMA HON'BLE MRS. JUSTICE SANGEETA SHARMA

Order 10/02/2026

1.

Issue notice to the respondent.

2.

Mr. Siddharth Bapna, learned counsel, accepts notice on behalf of respondent.

3.

The Co-ordinate Bench of this Court in the case of “Pramod Jain vs. Assistant Commissioner of Income Tax” (D.B. Civil Writ Petition No. 18359/2025) alongwith other connected cases decided on 27.01.2026, had directed as under:

“2. Learned counsel for the petitioners submits that the controversy involved in the present matters is under

[2026:RJ-JP:6107-DB] (2 of 3) [CW-2601/2026] consideration before the Hon’ble Apex Court in Siddharth Totuka Vs.Assistant Commissioner of Income Tax Central Circle in SLP No. 31711/2025, in which the following order was passed on08.12.2025: “1.Issue notice. 2.Dasti service, in addition, is permitted. 3.Tag with SLP(C) No. 33392 of 2025. 4.In the meantime, the proceedings before the Adjudicating Authority shall remain stayed insofar as Section 153C of the Income Tax Act, 1961 is concerned including the order impugned passed by the High Court.”

3.

Learned counsel for the petitioners submits that the proceedings before the Adjudicating Authority, insofar as they pertain to Section 153C of the Income Tax Act, 1961, including the impugned order under consideration before this Hon’ble Court in the present case, have been stayed by the Hon’ble Apex Court. It is, therefore, prayed that similar protection be extended in the present petitions as well. Learned counsel further fairly submits that the outcome of these petitions shall be governed by the outcome of the said SLP and, thus, subject to such outcome, the petitions may be disposed of while extending the aforesaid protection.

4.

Learned counsel for the respondents fairly submits that the order passed by the Hon’ble Apex Court shall be duly followed. He further submits that in the event these petitions are disposed of, the same may be made subject to the final outcome of the aforesaid SLP.

5.

Having considered the submissions made at the Bar, this Court is of the clear opinion that once the narrow compass of the issue is being directly adjudicated by the Hon’ble Apex Court in pursuance of the litigation undergone by the parties pertaining to Section 153C of the Income Tax Act, 1961, it would be appropriate to dispose of the present writ petitions by extending the same protection as granted by the Hon’ble Apex Court.

6.

Accordingly, it is directed that the Adjudicating Authority shall not proceed with any proceedings under Section 153C of the Income Tax Act, 1961 against the petitioners, as also consequential order(s), if any,

[2026:RJ-JP:6107-DB] (3 of 3) [CW-2601/2026] including giving effect to any impugned orders, for so long as the interim protection granted by the Hon’ble Apex Court continues to operate. The outcome of SLP No. 31711/2025 (tagged with SLP(C) No. 33392/2025) shall govern the outcome of the present petitions.

7.

The instant writ petitions are disposed of accordingly.”

4.

Considering the nature of controversy raised in the present petition which is identical to the aforesaid cases, both the learned counsel are ad idem that the present petition be also disposed of accordingly.

5.

Keeping in view the above, the present writ petition is disposed of in terms of order dated 27.01.2026 passed in the case of Pramod Jain (supra). The observations/directions therein shall apply mutatis mutandis to the present case.

6.

All pending applications also stand disposed of. (SANGEETA SHARMA),J (SANJEEV PRAKASH SHARMA),ACTING CJ RIYA/4

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