PRASHANT GUPTA S/O SHRI GOPAL PRASAD GUPTA vs. ASSISTANT COMMISSIONER OF INCOME TAX

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CW/12692/2025HC RajasthanRJHC02069927202524 February 2026Bench: INDERJEET SINGH,RAVI CHIRANIA4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court held that since the narrow compass of the issue concerning Section 153C of the Income Tax Act, 1961, was directly under adjudication by the Hon'ble Apex Court, it would be appropriate to dispose of the present writ petitions by extending the same protection as granted by the 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, 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 the SLP filed by Siddharth Totuka would govern the outcome of these petitions. The petitions were disposed of in terms of the order passed in the case of Pramod Jain, with the observations and directions applying mutatis mutandis.

What were the facts?

These are two connected writ petitions filed by Prashant Gupta and Abhay Chordia against the Assistant Commissioner of Income Tax, Central Circle-4, Jaipur. The petitioners are challenging proceedings related to Section 153C of the Income Tax Act, 1961. The core of the dispute revolves around the validity and continuation of these proceedings. The petitioners' counsel submitted that a similar controversy was decided by a coordinate bench of the High Court in the case of Pramod Jain vs. Assistant Commissioner of Income Tax, which in turn was influenced by an order of the Hon'ble Apex Court in Siddharth Totuka Vs. Assistant Commissioner of Income Tax Central Circle. The respondent's counsel accepted notice and agreed to follow the Apex Court's order.

What were the issues?

1. Whether the proceedings before the Adjudicating Authority pertaining to Section 153C of the Income Tax Act, 1961, including the impugned order, should be stayed in light of the interim protection granted by the Hon'ble Apex Court in Siddharth Totuka Vs. Assistant Commissioner of Income Tax Central Circle (SLP No. 31711/2025). Assessee's Contention: The petitioners argued that the controversy is identical to that decided by a coordinate bench in Pramod Jain, which followed the Apex Court's order staying proceedings under Section 153C. They prayed for similar protection and submitted that the outcome of their petitions should be governed by the Apex Court's decision. Revenue's Contention: The respondent conceded that the Apex Court's order would be duly followed and agreed that the disposal of these petitions should be subject to the final outcome of the aforementioned SLP.

Which sections of the Income-tax Act were involved?

Section 153C

AI-generated summary — verify with the full judgment below

HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Civil Writ Petition No. 12692/2025 Prashant Gupta S/o Shri Gopal Prasad Gupta, Aged About 50 Years, R/o 301, Anukampa Mansion, M.i. Road, Jaipur, Rajasthan- 302001. ----Petitioner Versus Assistant Commissioner Of Income Tax, Central Circle-4, Room No. 416, 4Th Floor, Jeevan Nidhi 2, Lic Building, Ambedkar Circle, Jaipur, Rajasthan- 302005. ----Respondent Connected With D.B. Civil Writ Petition No. 12681/2025 Abhay Chordia S/o Shri Ashok Chordia, Aged About 43 Years, R/o 4459, Kgb Ka Rasta, Johari Bazar, Jaipur. ----Petitioner Versus Assistant Commissioner Of Income Tax, Central Circle-4, Room No. 416, 4Th Floor, Jeevan Nidhi 2, Lic Building, Ambedkar Circle, Jaipur, Rajasthan- 302005. ----Respondent For Petitioner(s) : Mr. Kanishk Singhal for Mr. Gunjan Pathak For Respondent(s) : Mr. Siddharth Bapna with Ms. Tanushka Saxena & Ms. Chinki Choudhary HON'BLE MR. JUSTICE INDERJEET SINGH HON'BLE MR. JUSTICE RAVI CHIRANIA Order 24/02/2026 1. Issue notice to the respondents. 2. Mr. Siddharth Bapna, learned counsel, accepts notice on behalf of the respondents.

(2 of 4) [CW-12692/2025] 3. Learned counsel for the petitioners submit that the similar controversy has already been considered and decided by 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) along with other connected matters decided on 27.01.2026, wherein it has held:- “2. Learned counsel for the petitioners submits that the controversy involved in the present mat- ters is under consideration before the Hon’ble Apex Court in Siddharth Totuka Vs. Assistant Commis- sioner 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 In- come 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 out-come 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.

(3 of 4) [CW-12692/2025] 4. Learned counsel for the respondents fairly sub- mits 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 out- come 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 adju- dicated 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, including giving effect to any im- pugned orders, for so long as the interim protec- tion 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. Learned counsel for the parties are at ad idem that the controversy raised in the present petitions is identical to the aforesaid cases and prays that the present petitions be also disposed of accordingly. 5. In that view of the matter, the present writ petition are disposed of in terms of order dated 27.01.2026 passed in the case

(4 of 4) [CW-12692/2025] of Pramod Jain (supra). The observations/directions therein shall apply mutatis mutandis to the present case. 6. All pending applications also stand disposed of. (RAVI CHIRANIA),J (INDERJEET SINGH),J Monika/74-75

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