Gujarat High Court
Prakashchandra Chhotalal Shah vs Office Of The Income Tax Officer 1 ... on 17 November, 2025
Author: A.S. Supehia
Bench: A.S. Supehia
NEUTRAL CITATION
C/SCA/15330/2025 JUDGMENT DATED: 17/11/2025
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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/SPECIAL CIVIL APPLICATION NO. 15330 of 2025
FOR APPROVAL AND SIGNATURE:
HONOURABLE MR. JUSTICE A.S. SUPEHIA
and
HONOURABLE MR. JUSTICE PRANAV TRIVEDI
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Approved for Reporting Yes No
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PRAKASHCHANDRA CHHOTALAL SHAH
Versus
OFFICE OF THE INCOME TAX OFFICER 1 PALANPUR & ANR.
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Appearance:
MR SHERYAS SHAH for MS SHRUNJAL T SHAH(10617) for the Petitioner(s) No. 1
MS MAITHILI D MEHTA(3206) for the Respondent(s) No. 1,2
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CORAM:HONOURABLE MR. JUSTICE A.S. SUPEHIA
and
HONOURABLE MR. JUSTICE PRANAV TRIVEDI
Date : 17/11/2025
ORAL JUDGMENT
(PER : HONOURABLE MR. JUSTICE A.S. SUPEHIA)
1. Learned advocate for the petitioner has tendered the draft amendment. The same is granted in terms of the draft. The amendment to be carried out forthwith.
2. Heard learned advocate Mr. Shreyas Shah for learned advocate Ms. Shrunjal Shah for the petitioner and learned Senior Standing Counsel Ms. Maithili Mehta for the respondents. Page 1 of 4 Uploaded by PHALGUNI PATEL(HC00175) on Thu Nov 20 2025 Downloaded on : Thu Nov 20 21:55:04 IST 2025
NEUTRAL CITATION C/SCA/15330/2025 JUDGMENT DATED: 17/11/2025 undefined
3. Rule returnable forthwith. Learned Senior Standing Counsel Ms. Maithili Mehta waives service of notice of Rule for the respondents.
4. Having regard to the controversy in narrow compass, this matter is taken up for hearing with the consent of learned advocates for the respective parties.
5. By this petition under Article 226 of the Constitution of India, the petitioner has prayed for the following reliefs :
"29(a) Issue a writ and/or order and/or direction in the nature of certiorari or any other appropriate writ, order or direction, calling for all the records and proceeding to the present petition and after going through the same, quash the impugned order passed under Section 148A(3) of the Act dated 29.06.2025 (Exhibit-'B'), notice issued under Section 148A(1) of the Act dated 25.03.2025 (Exhibit-'A') as well as consequential notice issued under Section 148 of the Act dated 29.06.2025 (Exhibit-'F') by respondent no. 1 and any consequential action arising therein;"
6. At the outset, learned advocate Mr. Shreyas Shah for learned advocate Ms. Shrunjal Shah for the petitioner submitted that the petitioner has already offered the amount of interest for assessment. He has also referred to the statement of computation of total income at page '55' of the petition's compilation which includes interest from other parties other income. He has also referred to the details of annexures and has submitted that the petitioner had also segregated the amount with supporting annexures. However, the Assessing Page 2 of 4 Uploaded by PHALGUNI PATEL(HC00175) on Thu Nov 20 2025 Downloaded on : Thu Nov 20 21:55:04 IST 2025 NEUTRAL CITATION C/SCA/15330/2025 JUDGMENT DATED: 17/11/2025 undefined Officer had ignored the same and derived at an incorrect finding, contrary to the record. Thus it is urged that the impugned order dated 29.06.2025 passed under Section 148A(3) of the Income Tax Act, 1961 (For Short "the Act") and notice dated 25.03.2025 issued under Section 148A(1) of the Act as well as consequential notice dated 29.06.2025 issued under Section 148 of the Act may be quashed and set aside.
7. Per contra, learned Senior Standing Counsel Ms. Maithili Mehta for the respondent has submitted that the impugned order may not be interfered with as the same is appropriately passed. However, the Court drew attention to the computation of total income at pages '55' to '57' of the record, which demonstrates that the interest amount in question had already been offered to tax by the petitioner and that the corresponding tax had been duly paid. Learned Senior Standing Counsel, Ms. Mehta, was not in a position to dispute the aforesaid factual position.
8. Having perused the impugned order and the findings recorded in paragraph 5.3., it appears that the Assessing Officer has incorrectly recorded the facts and are contrary to the documents which are produced on record and the details in the computation Page 3 of 4 Uploaded by PHALGUNI PATEL(HC00175) on Thu Nov 20 2025 Downloaded on : Thu Nov 20 21:55:04 IST 2025 NEUTRAL CITATION C/SCA/15330/2025 JUDGMENT DATED: 17/11/2025 undefined statement offered by the present petitioner. Thus, the impugned order appears to be passed without application of mind to the computation statement and the segregation amount which was supplied by the petitioner. Hence the same deserves to be quashed and set aside.
9. Accordingly, the petition succeeds. The impugned order dated 29.06.2025 passed under Section 148A(3) of the Act and the notice dated 25.03.2025 issued under Section 148A(1) of the Act as well as consequential notice dated 29.06.2025 issued under Section 148 of the Act are hereby quashed and set aside. Rule is made absolute to the aforesaid extent. No order as to costs.
(A. S. SUPEHIA, J) (PRANAV TRIVEDI,J) phalguni/15 Page 4 of 4 Uploaded by PHALGUNI PATEL(HC00175) on Thu Nov 20 2025 Downloaded on : Thu Nov 20 21:55:04 IST 2025