Witnesses reportedly heard a "pop" and watched as the man fell to the ground after Michael Gordon Pallier, 26, allegedly got out of a car and drew a gun on Sunday, January 10, court documents said.

Pallier admitted to possessing a modified firearm without a licence and possessing 230 rounds of ammunition during a brief appearance at the ACT Magistrates Court on Monday.

But the court heard he will fight charges of intentionally inflicting grievous bodily harm and unlawfully discharging a gun over the alleged shooting.

Pallier is behind bars and will return to court in May when the matters are set to be committed to the Supreme Court.

Documents previously tendered in court said the alleged victim and a neighbour at the unit complex had been involved in a dispute that stemmed from an allegation of sexual assault on New Year's Day.

The feud escalated into a series of physical altercations that flared up again when the pair ran into each other as the alleged victim drank beer outside the unit block the night of the alleged shooting.

He allegedly threw a beer can at the neighbour, causing the man to punch the alleged victim to the ground, court documents said.

The man got back on his feet and allegedly enticed the neighbour to the front of the unit complex in a bid to continue the fight.

That was when Pallier was alleged to have gotten out of a car, drawn a firearm that was partially obscured by a piece of cloth, and shot the man in the back of the thigh.

Witnesses allegedly described hearing a "pop" and then saw the alleged victim drop to the ground as he yelled: "You broke my leg".

Pallier and the neighbour then got in the car and drove away.

Later that night, police raided a Hawker unit where they allegedly found Pallier asleep on the floor and a loaded firearm hidden under a nearby lounge cushion.

They seized the firearm, which court documents said appeared to be home-made, with a wooden stock and 30-40 centimetre metal barrel.

They also discovered 230 rounds of 0.22 calibre ammunition.

Court documents said Pallier was aware the alleged victim had been shot in the leg when he was later interviewed by police, even though they had not given him that information.

He denied shooting the man, but said he had been involved in an altercation involving the two men.

Pallier allegedly told police that he had significant experience with firearms, despite not having a firearms licence, and that the alleged victim would not be alive if he had shot him.

A court previously heard the alleged victim suffered a broken femur and underwent surgery to fix the damage.

Pallier was remanded in custody on Monday and his lawyer indicated he would make a second application for bail in court next week.