Case Note & Summary
The appellant, Dr. Arvind Kumar R Shaw, purchased a Rolls Royce Phantom car for Rs.1,45,00,000 for personal use. One Karthikeyan, a director of Sree Annapoorna Srree Gowrishankar Hotels Private Limited, approached the appellant claiming that one Sekar of LULU Group intended to purchase the car for Rs.80 lakh. Believing the representation, the appellant handed over the car along with original documents and keys, retaining only a duplicate key. No payment was made, and Karthikeyan became untraceable. The appellant lodged a police complaint on 21.11.2017. Upon search, it was found that the car was seized by the Income Tax Authorities from a service centre at Kochi. The Income Tax Department initiated proceedings and issued a notice under Section 153C of the Income-tax Act, 1961 on 25.11.2021, culminating in an assessment order dated 29.12.2021 under Section 143(3) read with Section 153C of the Act. The appellant challenged the assessment order by filing a writ petition, which was dismissed by the learned Single Judge on 27.01.2026. Aggrieved, the appellant filed the present Letters Patent Appeal. The Division Bench, after hearing the parties, found that the appellant failed to establish lawful possession or ownership of the car at the time of seizure. The appeal was dismissed, upholding the order of the learned Single Judge.
Headnote
A) Income Tax - Assessment under Section 153C - Seizure of Asset - The appellant claimed ownership of a Rolls Royce Phantom car seized by the Income Tax Department from a service centre. The Department issued notice under Section 153C of the Income-tax Act, 1961, and passed an assessment order. The appellant challenged the order by way of a writ petition, which was dismissed by the learned Single Judge. On appeal, the Division Bench held that the appellant failed to establish lawful possession or ownership, and the appeal was dismissed. (Paras 1-10) B) Letters Patent Appeal - Maintainability - Against Single Judge Order in Writ Petition - The appeal was filed under Clause 15 of the Letters Patent against the order dated 27.01.2026 in W.P.No.14256 of 2024. The Division Bench considered the merits and dismissed the appeal, upholding the Single Judge's order. (Paras 1-10)
Issue of Consideration
Whether the appellant, who claimed ownership of a Rolls Royce Phantom car seized by the Income Tax Department, was entitled to challenge the assessment order under Section 153C of the Income-tax Act, 1961, and whether the learned Single Judge erred in dismissing the writ petition.
Final Decision
The appeal is dismissed. The order of the learned Single Judge dated 27.01.2026 in W.P.No.14256 of 2024 is upheld.
Law Points
- Section 153C of Income-tax Act
- 1961
- assessment of income of other person
- seizure of asset from third party
- burden of proof on claimant
- Letters Patent appeal against single judge order
