MAHENDRA VERMA S/O LATE KANHAIYALAL VERMA vs. ASSISTANT COMMISSIONER OF INCOME TAX

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CW/12450/2025HC RajasthanRJHC02068424202516 September 2025Author: SANJEEV PRAKASH SHARMA,SANJEET PUROHIT2 pages
AI SummaryDismissed

What did the High Court hold?

The Court held that the proceedings initiated under Section 153(C) are maintainable. The reasoning was based on the fact that the petitioner himself had previously challenged the Section 148 proceedings, arguing for proceedings under Section 153(C). The Court had quashed the Section 148 proceedings with liberty to the respondent-Tax Authorities to proceed in accordance with law. Given this liberty, the challenge on the ground of limitation or maintainability of Section 153(C) proceedings would not arise, as it was at the petitioner's instance that the Court permitted the authorities to proceed. Therefore, the objections raised by the petitioner against the reassessment proceedings were rightly rejected. The Court found no reason to interfere with the notice issued under Section 153(C) but granted the petitioner liberty to raise all necessary arguments and defenses before the authorities, who are to pass a speaking order. The ratio decidendi is that once a court grants liberty to proceed in accordance with law, subsequent challenges on grounds that could have been addressed within that liberty are unlikely to succeed, especially when the petitioner initiated the process leading to that liberty.

What were the facts?

The petitioner, Mahendra Verma, is challenging a notice issued under Section 153(C) of the Income Tax Act, 1961, dated January 16, 2025, for Assessment Year 2014-2015, and the disposal of his objections against reassessment proceedings dated July 14, 2025. The petitioner had previously filed a writ petition (No. 2386/2022) challenging proceedings initiated under Section 148, arguing that proceedings should have been under Section 153(C). This Court quashed the Section 148 proceedings on March 19, 2024, granting liberty to the authorities to proceed in accordance with law. The respondent is the Assistant Commissioner of Income Tax, Central Circle 4, Jaipur.

What were the issues?

1. Whether the notice issued under Section 153(C) of the Income Tax Act, 1961, is maintainable against the petitioner for Assessment Year 2014-2015, considering the prior quashing of Section 148 proceedings and the liberty granted to the revenue to proceed. Assessee's Contentions: The petitioner argued that the notice under Section 153(C) was not maintainable and that the twin satisfaction of the Assessing Officer (AO) was not recorded. Ancillary arguments were also raised. Revenue's Contentions: The revenue contended that the liberty granted by the Court in a previous writ petition to proceed in accordance with law validated the initiation of proceedings under Section 153(C). The objections against reassessment proceedings were rightly rejected by the authorities.

Which sections of the Income-tax Act were involved?

Section 153(C),Section 148

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
[2025:RJ-JP:37760-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Civil Writ Petition No. 12450/2025 Mahendra Verma S/o Late Kanhaiyalal Verma, Aged About 73 Years, R/o A-207-208, Nagar Residency, Near Rungta Hospital, Malviya Nagar, Jaipur 302017, Through Power Of Attorney Holder Vinod Bamalwa, Son Of Late Madan Lal Bamalwa, Aged About 51 Years, Residing At 9/1 Lower Rawdon Street, L.R. Sarani S.O. Kolkata West Bengal 700020. ----Petitioner Versus Assistant Commissioner Of Income Tax, Central Circle 4 Jaipur, Income Tax, New Central Revenue Building, Bhagwan Das Road, Jaipur, Rajasthan 302005 ----Respondent For Petitioner(s) : Mr. Sanjay Jhanwar, Sr. Advocate assisted by Mr. Prakul Khurana and Mr. Rajat Sharma For Respondent(s) : Mr. Siddharth Bapna with Mr. Meyhul Mittal HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON'BLE MR. JUSTICE SANJEET PUROHIT

Order 16/09/2025

1.

The challenge is to the notice issued under Section 153(C) of the Income Tax Act, 1961 dated 16.01.2025 for the Assessment Year 2014-2015 and the disposal of the objections against reassessment proceedings order dated 14.07.2025. 2. Learned Senior Counsel appearing for the petitioner has vehemently argued that the notice was not maintainable against the petitioner under Section 153(C) and twin satisfaction of the AO were not recorded. He has also raised other ancillary arguments. We notice that the petitioner had earlier preferred a

[2025:RJ-JP:37760-DB] (2 of 2) [CW-12450/2025] writ petition No.2386/2022, wherein he challenged the proceedings initiated under Section 148 against the argument advanced that the proceedings should have been initiated under Section 153(C). Accordingly, this Court quashed the proceedings initiated under Section 148 of the Income Tax Act vide judgment dated 19.03.2024 with liberty to the authorities to proceed against the writ petitioner in accordance with law. Since, the Court granted permission to the respondent- Tax Authorities to proceed, the challenge on the ground of limitation would not arise, now as it was at the instance of the petitioner that the order was passed by this Court granting liberty to the authorities to proceed.

3.

In view thereto, the proceedings initiated against the petitioner under Section 153(C) cannot be objected, the objections have been rightly rejected by the authorities.

4.

We, therefore, do not find any reason to interfere with the notice issued under Section 153(C), however, the petitioner is free to take up all the necessary arguments and defence available to him before the authorities who would of course pass an appropriate speaking order.

5.

With the aforesaid observations, the writ petition is dismissed. Pending appreciation(s), if any, also stands disposed of. (SANJEET PUROHIT),J (SANJEEV PRAKASH SHARMA),J GAURAV/AVINASH/18

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