Rajasthan High Court Stays Section 153C Proceedings Pending Supreme Court Decision in Nand Kishore Jain Case

Overview

The Rajasthan High Court has disposed of a batch of writ petitions filed by Nand Kishore Jain and connected petitioners challenging proceedings initiated under Section 153C of the Income Tax Act, 1961. The court's disposal was guided entirely by a prior coordinate bench ruling, which had already addressed the same legal controversy and extended protection against Section 153C proceedings while the matter remained sub judice before the Supreme Court of India.

Background of the Dispute

The petitioners approached the Rajasthan High Court by way of Civil Writ Petition No. 18754/2025, seeking relief against proceedings initiated under Section 153C of the Income Tax Act, 1961. Their primary contentions included that the initiation of such proceedings was without jurisdiction and barred by limitation. The petitioners also sought quashing of the notice issued under Section 153C as well as any consequential assessment orders that may have been passed during the pendency of the writ petition.

Both sides, through their respective counsel, acknowledged at the outset that the very same legal controversy had already been examined and addressed by a coordinate bench of the Rajasthan High Court in an earlier matter. Given this shared position, the court proceeded to dispose of the present writ petitions in line with that earlier decision.

The Coordinate Bench Decision: Pramod Jain Vs. Assistant Commissioner of Income Tax

The pivotal precedent relied upon in the present case is the coordinate bench order in Pramod Jain Vs. Assistant Commissioner of Income Tax, D.B. Civil Writ Petition No. 18359/2025 along with connected matters, decided on 27.01.2026.

In that matter, the coordinate bench noted that the core legal question arising from Section 153C of the Income Tax Act, 1961 was actively being considered by the Supreme Court. The bench observed that once the apex court had taken up the matter and granted interim protection, it would be entirely appropriate for the High Court to extend a similar protection to petitioners before it, rather than independently adjudicating the same question.

The coordinate bench had directed as follows:

"Accordingly, it is directed that the Adjudicating Authority shall not proceed with any proceedings under Section 153C of the Income Tax Act, 1961 against the petitioner, as also consequential order(s), if any, including giving effect to any impugned orders, for so long as the interim protection granted by the Hon'ble Apex Court continues to operate. The outcome of SLP No. 31711/2025 (tagged with SLP(C) No. 33392/2025) shall govern the outcome of the present petition."