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.
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C/SCA/15330/2025 JUDGMENT DATED: 17/11/2025
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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
NEUTRAL CITATION
C/SCA/15330/2025 JUDGMENT DATED: 17/11/2025
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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
NEUTRAL CITATION
C/SCA/15330/2025 JUDGMENT DATED: 17/11/2025
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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
