Rakesh Kumar GOYAL-2016-2017 vs Assistant Commissioner of… — Income Tax | Bombay HC (2025)

Rakesh Kumar GOYAL-2016-2017 vs Assistant Commissioner of… — Income Tax | Bombay HC (2025)

What the court decided

AI extract

Outcome

Interim stay of the effect, implementation and operation of the Assessment Order for A.Y. 2016-2017 pending admission of the Writ Petition, without prejudice to the rights and contentions of the parties; Writ Petition placed for admission on 20th January, 2026.

Issue for consideration

Whether the assessment proceedings under Section 153C of the IT Act for A.Y. 2016-2017 are vitiated by the non-supply to the Petitioner of the satisfaction notes prepared by the Assessing Officer of the searched person and by the Assessing Officer of the Petitioner, which the Petitioner contends is a sine qua non for passing an assessment order under Section 153C.

Court's answer

Prima facie, 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. 2016-2017 shall remain stayed.

Detailed headnote1 paragraphs

Bombay High Court (Ordinary Original Civil Jurisdiction), interim order in Writ Petition No. 2680 of 2025 — Rakesh Kumar Goyal v. Assistant Commissioner of Income Tax, Central Circle-3(1), Mumbai & ors. The Petitioner challenges a notice dated 29th September, 2022 issued 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. 2016-2017. Principal ground: the satisfaction notes prepared by the Assessing Officer of the searched person and by the Assessing Officer of the Petitioner were not supplied, which the Petitioner contends is a sine qua non for a Section 153C assessment, rendering the proceedings bad in law. The Revenue contended there is no provision under the IT Act entitling the Petitioner to the satisfaction note, that these are internal documents, and that all relevant material for issuing the notice was admittedly supplied. After hearing rival submissions, the Court, prima facie and without prejudice to the rights and contentions of the parties, stayed the effect, implementation and operation of the Assessment Order for A.Y. 2016-2017 pending admission, and placed the Writ Petition for admission on 20th January, 2026.

82.os.wp.2680.2025.doc

Digitally signed by VINA VINA ARVIND ARVIND KHADPE KHADPE Date: 2025.12.24 12:12:47 +0530

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

WRIT PETITION NO.2680 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. 2016-2017. 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

DECEMBER 16, 2025

Vina Khadpe,PS

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82.os.wp.2680.2025.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. 2016-2017 shall remain stayed.

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

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DECEMBER 16, 2025

Vina Khadpe,PS

82.os.wp.2680.2025.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.]

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DECEMBER 16, 2025

Vina Khadpe,PS