DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-4, JAIPUR, JAIPUR V. KAILASH CHANND HIRAWAT, JAIPUR

ITA 1315/JPR/2024

AI Insights

The case involves an appeal by the Deputy Commissioner of Income Tax, Central Circle-04, Jaipur against Kailash Chand Hirawat, concerning the assessment year 2012-13. The primary issue was the challenge to an order passed under section 250 of the Income Tax Act, 1961, which had set aside an earlier assessment order that included unaccounted loan interest in the assessee's income. The CIT(A) had allowed the assessee's appeal, relying on a precedent set by the Rajasthan High Court in Shyam Sunder Khandelwal v. ACIT, which quashed similar notices under section 148 of the Act. The department's subsequent compliance with this precedent by issuing a notice under section 153C rendered the present appeal infructuous.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 469957 (ITAT-JAIPUR)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-02-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Other Referred Cases: Shyam Sunder Khandelwal v. ACIT, (2024) 161 taxmann.com 255 (Rajasthan)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANOJ KUMAR
• Assessee Lawyers: ROHAN SOGANI
• Keywords: Set aside
• Section: 148; 250; 56; 153C

Judgement Text

"vk;dj vihyh; vf/kdj.k] t;iqj U;k;ihB] t;iqj IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,”A” JAIPUR Jh xxu xks;y] ys[kk lnL; ,o Jh ujsUnz dqekj] U;kf;d lnL; ds le{k BEFORE: SHRI GAGAN GOYAL, AM & SHRI NARINDER KUMAR, JM vk;dj vihy la-@ITA No. 1315/JP/2024 fu/kZkj.k o\"kZ@Assessment Year : 2012-13 Deputy Commissioner of Income Tax, Central Circle-04, Jaipur cuke Vs. Kailash Chand Hirawat 9, Narain Singh Road, Jaipur-302004 LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AAKPH 9224 R vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksj ls@ Assessee by : Sh. Rohan Sogani, CA. jktLo dh vksj ls@ Revenue by : Sh. Manoj Kumar, JCIT-DR lquokbZ dh rkjh[k@ Date of Hearing : 18/02/2025 mn?kks\"k.kk dh rkjh[k@Date of Pronouncement: 18/02/2025 vkns'k@ ORDER PER GAGAN GOYAL, A.M: Present appeal came to be presented challenging order dated 02.09.2024, passed u/s 250 of the Income Tax Act, 1961, relating to the Assessment Year 2012-13. 2. Vide impugned order, Ld. CIT(A) allowed the appeal filed by the assessee and thereby set aside the assessment order dated 19.11.2019 passed by the Assessing Officer. Consequently, a deletion of Rs. 2 ITA No. 1315/JP/2024 DCIT vs. Kailash Chand Hirawat 24,85,000/- as interest earned on account of unaccounted loan in cash made to the total income of the assessee u/s 56 of the Act, was set aside. 3. Ld. CIT(A) allowed the appeal filed by the assessee while relying on decision passed by our Hon’ble High Court in the case of titled as Shyam Sunder Khandelwal v. ACIT, (2024) 161 taxmann.com 255 (Rajasthan), D.B. Civil Writ Petition No. 18363/2019 whereby the Hon’ble High Court had quashed notices u/s 148 of the Act, for the reasons recorded therein. 4. Today, it has been brought to our notice by both the sides that as regards the Assessment Year under consideration, qua the assessee, the department has issued notice u/s 153C of the Income Tax Act, having regard to the above said decision in Shyam Sunder Khandelwal (supra)’s case, and thereby the assessee has been required to prepare true and correct return of his total income for the said assessment year. 5. Admittedly, the department has issued notice u/s 153C of the Act. In this situation, it can safely be said that the department has given effect to the decision by our own Hon’ble High Court in the abovesaid case. 3 ITA No. 1315/JP/2024 DCIT vs. Kailash Chand Hirawat 6. The department having complied with and acted upon the above said decision by our Hon’ble High Court, present appeal by the department can safely be said to have become infructuous. Result 7. As a consequence, this appeal is hereby dismissed as having become infructuous. File be consigned to the record room, after the needful is done by the office. Order pronounced in the open court on 18/02/2025. Sd/- Sd/- ¼ ujsUnz dqekj ½ ¼ xxu xks;y ½ (NARINDER KUMAR) (GAGAN GOYAL) U;kf;d lnL;@Judicial Member ys[kk lnL;@Accountant Member Tk;iqj@Jaipur fnukad@Dated:- 18/02/2025 *Ganesh Kumar, Sr. PS vkns'k dh izfrfyfi vxzsf’kr@Copy of the order forwarded to: 1. The Appellant- DCIT, Central Circle-04, Jaipur 2. izR;FkhZ@ The Respondent- Kailash Chand Hirawat, Jaipur 3. vk;dj vk;qDr@ The ld CIT 4. vk;dj vk;qDr¼vihy½@The ld CIT(A) 5. foHkkxh; izfrfuf/k] vk;dj vihyh; vf/kdj.k] t;iqj@DR, ITAT, Jaipur 6. xkMZ QkbZy@ Guard File (ITA No. 1315/JP/2024) vkns'kkuqlkj@ By order, lgk;d iathdkj@Asst. Registrar "