Rakesh Kumar GOYAL-2018-2019 vs Assistant Commissioner of… — Income Tax | Bombay HC (2025)

Rakesh Kumar GOYAL-2018-2019 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. 2018-2019 pending admission of the Writ Petition, without prejudice to the rights and contentions of the parties; petition listed for admission on 20th January, 2026.

Issue for consideration

Whether the assessment proceedings under Section 153C of the IT Act for A.Y. 2018-2019 are bad in law and liable to be quashed because the satisfaction notes prepared by the Assessing Officer of the searched person and by the Assessing Officer of the Petitioner were not supplied to the Petitioner, which the Petitioner contends is a sine qua non for a Section 153C assessment. +1 more

Ratio / Principle

As an interim measure, and expressing only a prima facie view, the Court directed that 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. 2018-2019 shall remain stayed. The rival contentions on supply of the satisfaction notes were not finally decided.

Key takeaways

The Writ Petition was directed to be placed for admission on 20th January, 2026.ratio¶22

Detailed headnote1 paragraphs

Bombay High Court, Ordinary Original Civil Jurisdiction (B. P. Colabawalla & Amit S. Jamsandekar, JJ.), Writ Petition No. 2842 of 2025, Rakesh Kumar Goyal v. Assistant Commissioner of Income Tax, Central Circle-3(1), Mumbai & Ors., order dated December 16, 2025: The petition challenges a notice dated 29th September, 2022 under Section 153C of the Income Tax Act, 1961 and the consequent assessment order dated 28th March, 2024 under Section 153C read with Section 144 for A.Y. 2018-2019, principally on the ground that 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. The Revenue resisted, contending there is no provision entitling the assessee to the satisfaction note, that such notes are internal documents, and that all relevant material for the notice was admittedly provided. Without finally deciding these contentions, the Court, on a prima facie view and without prejudice, stayed the effect, implementation and operation of the assessment order pending admission, and listed the petition for admission on 20th January, 2026.

84.os.wp.2842.2025.doc

Digitally signed by VINA VINA ARVIND ARVIND KHADPE KHADPE Date: 2025.12.24 12:18:39 +0530

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

WRIT PETITION NO.2842 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. 2018-2019. 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

Page 1 of 3

84.os.wp.2842.2025.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. 2018-2019 shall remain stayed.

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

Page 2 of 3

DECEMBER 16, 2025

Vina Khadpe,PS

84.os.wp.2842.2025.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