Bansilal B. Raisoni & Sons Vs ACIT (Bombay High Court)
Bombay High Court has disposed of a petition filed by Bansilal B. Raisoni & Sons, a partnership firm, challenging notices issued under Section 153A of the Income Tax Act, 1961. While acknowledging some of the petitioner’s legal contentions, the High Court declined to intervene at this preliminary stage, directing the firm to pursue available remedies within the income tax assessment framework. The court’s decision, delivered on July 16, 2025, underscores the principle of exhausting alternative remedies, particularly when factual disputes are central to the challenge.
The case originated from a search operation conducted by Income Tax Authorities on April 5, 2016. The search targeted the residential premises of Mr. Rajendra Bansilal Raisoni, a partner of the firm, Mr. Sunil Bansilal Raisoni (brother of Rajendra but not a partner), and Mr. Kunal Pradeep Raisoni. Crucially, the petitioner firm contended that no search was conducted at its registered office or premises. Despite this, the Assistant Commissioner of Income Tax issued show-cause notices to the partnership firm on August 10, 2017, initiating proceedings under Section 153A of the Act for relevant assessment years.
Bansilal B. Raisoni & Sons lodged detailed objections with the Assessing Officer (AO) on September 25, 2017, arguing that without an actual search on the firm’s premises, the AO lacked the authority to issue notices under Section 153A. These objections were subsequently rejected by the AO through an order dated October 25, 2018, prompting the firm to approach the High Court.
