Rakesh Kumar GOYAL-2019-2020 vs Assistant Commissioner of… — Income Tax | Bombay HC (2025)

Rakesh Kumar GOYAL-2019-2020 vs Assistant Commissioner of… — Income Tax | Bombay HC (2025)

What the court decided

AI extract

Outcome

Ad-interim relief: pending admission of the Writ Petition, and without prejudice to the rights and contentions of the parties, the effect, implementation and operation of the Assessment Order for A.Y. 2019-2020 shall remain stayed; the Writ Petition is placed for admission on 20th January, 2026.

Issue for consideration

Whether non-supply of the satisfaction notes (prepared by the Assessing Officer of the searched person and by the Assessing Officer of the Petitioner) renders the entire Section 153C proceedings bad in law so that the impugned notice and assessment order for A.Y. 2019-2020 must be quashed. +1 more

Court's answer

As a prima facie view, pending admission of the Writ Petition and without prejudice to the rights and contentions of the parties, the effect, implementation and operation of the Assessment Order passed in relation to A.Y. 2019-2020 shall remain stayed; the Writ Petition is directed to be listed for admission on 20th January, 2026.

Detailed headnote1 paragraphs

Bombay High Court, Writ Petition No. 2584 of 2025 — Rakesh Kumar Goyal v. Assistant Commissioner of Income Tax, Central Circle-3(1), Mumbai & ors. — Challenge to notice dated 29th September, 2022 under Section 153C of the Income Tax Act, 1961 and the consequent Assessment Order dated 28th March, 2024 passed under Section 153C read with Section 144 of the IT Act for A.Y. 2019-2020, principally on the ground that the satisfaction notes of the Assessing Officer of the searched person and of the Petitioner were not supplied, alleged to be a sine qua non for Section 153C proceedings; the Revenue contends there is no provision entitling the assessee to the satisfaction note and that all relevant material was admittedly provided. The Court, expressing only a prima facie view and without prejudice to the parties, stayed the effect, implementation and operation of the Assessment Order pending admission and listed the petition for admission on 20th January, 2026. Merits not decided.

80.os.wp.2584.2025.doc

Digitally signed by VINA VINA ARVIND ARVIND KHADPE KHADPE Date: 2025.12.24 12:07:36 +0530

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION

WRIT PETITION NO.2584 OF 2025

Rakesh Kumar Goyal .. Petitioner

Versus

Assistant Commissioner of Income Tax, Central Circle-3(1), Mumbai & ors. .. Respondents

Mr.Madhur Agrawal, with Mr.Punit J. Shah, i/b. Mr. Atul Jasani, Advocates for the Petitioner.

Mr.Prakash Chhotaray, Advocate for the Respondent.

CORAM: B. P. COLABAWALLA &

AMIT S. JAMSANDEKAR, JJ. DATE: DECEMBER 16, 2025

P. C.

The above Writ Petition is filed challenging the impugned Notice dated 29^th September, 2022, issued under Section 153C of the Income Tax Act, 1961 (“IT Act”) and the consequent Assessment Order dated 28^th March, 2024, passed under Section 153C read with Section 144 of the IT Act. The Assessment Year in question is A.Y. 2019-2020. One of the main grounds on which the said notice is challenged, is that the satisfaction note prepared by the Assessing Officer of the person searched as well as the satisfaction note prepared by the Assessing Officer of the Petitioner have not been supplied to

Vina Khadpe,PS

Page 1 of 3

DECEMBER 16, 2025

80.os.wp.2584.2025.doc

the Petitioner. According to the Petitioner, this is sine qua non for before passing any Assessment Order under Section 153C of the IT Act. This having not been done, the entire proceedings under Section 153C of the IT Act are bad in law and therefore have to be quashed.

In contrast, it is the case of the Revenue that there is no provision under the IT Act under which the Petitioner can ask for the satisfaction note. According to the Revenue, these are internal documents and the Petitioner is not entitled to the same. This is apart from the fact that all the relevant material for issuing the Notice under Section 153C of the IT Act were admittedly provided to the Petitioner.

We have heard the rival submissions. At this stage, prima facie, we are of the view that pending the admission of the Writ Petition, without prejudice to the rights and contention of the parties, the effect, implementation and operation of the Assessment Order passed in relation to A.Y. 2019-2020 shall remain stayed.

We now place the above Writ Petition for admission on 20^th January, 2026.

Vina Khadpe,PS

Page 2 of 3

DECEMBER 16, 2025

80.os.wp.2584.2025.doc

This order will be digitally signed by the Private Secretary/ Personal Assistant of this Court. All concerned will act on production by fax or email of a digitally signed copy of this order.

[ AMIT S. JAMSANDEKAR , J.]

[B. P. COLABAWALLA, J.]

Page 3 of 3

DECEMBER 16, 2025

Vina Khadpe,PS