VIDYA NARENDRA JAIN vs. INCOME TAX OFFICER WARD 3(2) KALYAN AND ORS

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WP/5822/2022HC BombayHCBM01019269202215 June 2026Bench: HON'BLE SHRI JUSTICE B.P. COLABAWALLA,HON'BLE SHRI JUSTICE FIRDOSH PHIROZE POONIWALLA5 pages
AI SummaryAllowed

What did the High Court hold?

The High Court held that the impugned Notice issued under Section 148 of the Income Tax Act, 1961, for Assessment Year 2015-16 is time-barred. This decision is based on the admitted fact that the notice was issued on or after April 1, 2021, and pertains to AY 2015-16. The Court relied on the concession made by the learned Additional Solicitor General before the Supreme Court in the case of Union of India & Ors. v. Rajeev Bansal, which was reiterated in the Supreme Court's order dated May 4, 2026. The Supreme Court had directed that if a matter pertains to AY 2015-16, no further adjudicatory exercise is required by the High Court, other than declaring the notice as time-barred. Consequently, the Writ Petition was allowed, and the impugned Notice was set aside. Any action taken or emanating from the said Notice was also quashed and set aside. The Rule was made absolute, and the Writ Petition was disposed of accordingly.

What were the facts?

The Petitioner, Vidya Narendra Jain, filed a Writ Petition challenging a Notice issued under Section 148 of the Income Tax Act, 1961, for Assessment Year (AY) 2015-16. A primary contention was that the jurisdictional Assessing Officer lacked the authority to issue the notice, which should have been issued by a Faceless Assessing Officer. The Petitioner relied on the Bombay High Court's decision in Hexaware Technologies Limited. The Revenue appealed this decision and others following it to the Supreme Court. The Supreme Court remanded these matters back to the High Courts for fresh consideration, noting the retrospective insertion of Section 147A from April 1, 2026, and clarifying that no opinion was expressed on the merits. The Supreme Court's order dated May 4, 2026, specifically noted a concession by the Revenue that notices for AY 2015-16 would be time-barred in light of the Supreme Court's view in Union of India v. Rajeev Bansal.

What were the issues?

1. Whether the Notice issued under Section 148 of the Income Tax Act, 1961, for Assessment Year 2015-16 is liable to be quashed as time-barred, considering the concession made by the Revenue before the Supreme Court in light of the decision in Union of India & Ors. v. Rajeev Bansal (2024 SCC OnLine SC 2693)? Assessee's Contentions: The Assessee argued that the impugned notice is time-barred. They relied on the concession made by the learned Additional Solicitor General before the Supreme Court in the batch of appeals concerning AY 2015-16, as recorded in the Supreme Court's order dated May 4, 2026, which stated that such notices would stand barred by time in light of the decision in Union of India & Ors. v. Rajeev Bansal. The Assessee also initially challenged the jurisdiction of the Assessing Officer, citing the Hexaware Technologies Limited judgment. Revenue's Contentions: The Revenue, through the learned Additional Solicitor General, conceded before the Supreme Court that for AY 2015-16, notices issued or proposed to be issued for reassessment would be time-barred in light of the Supreme Court's view in Union of India & Ors. v. Rajeev Bansal. The Supreme Court's order also permitted the Assessee to raise all contentions if the cases did not pertain to AY 2015-16.

Which sections of the Income-tax Act were involved?

Section 148,Section 147A

AI-generated summary — verify with the full judgment below

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IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION WRIT PETITION NO. 5822 OF 2022 Vidya Narendra Jain .. Petitioner Versus Income Tax Officer Ward 3(2), Kalyan & Ors. .. Respondents Mr.Devendra Jain i/b Ms.Radha Halbe, Advocate for the Petitioner. Mr.Akhileshwar Sharma, Advocate for the Respondents.

CORAM: B. P. COLABAWALLA & FIRDOSH P. POONIWALLA, JJ. DATE: JUNE 15, 2026 P. C. 1. The above Writ Petition interalia challenges the Notice issued under Section 148 of the Income Tax Act, 1961. The Assessment Year in question is Assessment Year 2015-16.

2.

One of the main grounds on which the above Notice is challenged is that the jurisdictional Assessing Officer had no jurisdiction to issue the impugned Notice but it was only the Faceless Assessing Officer who Page 1 of 5 JUNE 15, 2026 Mohite TRUSHA TUSHAR MOHITE Digitally signed by TRUSHA TUSHAR MOHITE Date: 2026.06.19 15:49:02 +0530

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could issue the same. In support of this contention, the Petitioner Assessee relied upon the judgement of this Court in the case of Hexaware Technologies Limited v. Assistant Commissioner of Income Tax, Circle-15(1)(2), Mumbai and Ors. (Writ Petition No.1778 of 2023 decided on 3rd May 2024). 3. Following the aforesaid decision in Hexaware Technologies Limited (Supra), the present Writ Petition came to be allowed and the impugned Notice issued under Section 148 was set aside. Being aggrieved by the decision passed by this Court in Hexaware Technologies Limited (Supra) as well as in a batch of several other Petitions which followed the decision in Hexaware, the Revenue preferred Appeals before the Hon’ble Supreme Court. The Hon’ble Supreme Court, by four separate Orders dated 10th April 2026, 4th May 2026, 15th May 2026 & 15th May 2026 respectively, passed in a batch of matters, remanded the matters back to the respective High Courts for consideration of the issues afresh, especially keeping in mind the amendment introduced by the Legislature, namely the insertion of Section 147A w.e.f. 1st April 2026 having a retrospective effect. The Hon’ble Supreme Court also clarified that all contentions raised before the Supreme Court as well as any other grounds to quash the impugned notices could be urged before the High Courts and the Supreme Court had not expressed any Page 2 of 5 JUNE 15, 2026 Mohite

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opinion on the merits of the controversy. This is how the present Writ Petition has come up once again before us. 4. We note that in the aforesaid batch of Appeals disposed of by the Supreme Court, vide its Orders dated 4th May 2026, the Supreme Court, inter alia recorded a concession on the part of the learned Additional Solicitor General that in Assessment cases pertaining to A.Y.2015-16, the Notice issued, proposed to be issued, for re-assessment would stand barred by time in light of the view taken by the Supreme Court in Union of India and Ors. v. Rajeev Bansal, (2024 SCC OnLine SC 2693). For the sake of convenience, the Order passed by the Hon’ble Supreme Court on 4th May 2026 reads as under: “ORDER 1. Delay condoned. 2. Leave granted. 3. This batch of civil appeals comprising 103 cases is slightly different than those cases which came to be disposed of by a three Judge Bench of this Court, including both of us (Surya Kant, CJI. and Joymalya Bagchi, J.), vide order dated 10.04.2026 passed in Civil Appeal No. 4716 of 2026 and connected matters. 4. The instant cases were segregated through the above- mentioned order on the premise that they may be pertaining to Assessment Year 2015-16. It is fairly conceded by Mr. N. Venkataraman, learned Additional Solicitor General of India, representing the Revenue, that in the assessment cases pertaining to the year 2015-16, the notices issued/proposed to Page 3 of 5 JUNE 15, 2026 Mohite

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be issued for reassessment would stand barred by time in light of the view taken by this Court in Union of India & Ors. v. Rajeev Bansal, 2024 SCC OnLine SC 2693. 5. There is no quarrel that if the instant cases are found to pertain to Assessment Year 2015-16, then the impugned notices are liable to be struck down outrightly in terms of the concession on behalf of the Department recorded in paragraph 19 (f) of Rajeev Bansal (supra) and reiterated before us by the learned Additional Solicitor General of India. 6. However, if it is found that these cases pertain to an assessment year other than 2015-16, the respondent-assessees shall be entitled to raise all the contentions that have been permitted by this Court vide order dated 10.04.2026. Ordered accordingly. 7. Consequently, keeping in mind the reasons set out in order dated 10.04.2026, the impugned judgment in each appeal is set aside and the instant appeals are disposed of by remitting the matters to the jurisdictional High Courts for redetermination of the issues. As observed above, the High Courts shall firstly determine whether the matters pertain to Assessment Year 2015- 16. If it is found to be so, no further adjudicatory exercise shall be required to be undertaken by the High Court, except to declare the notices as being time-barred in light of Rajeev Bansal (supra). However, if it is found that the case does not pertain to Assessment Year 2015-16, then all the issues shall be resolved in terms of the order dated 10.04.2026 passed in Civil Appeal No. 4716 of 2026. 8. Pending application(s), if any, including application(s) for substitution and impleadment/intervention stand closed.” 5. As can be seen from this Order, the Supreme Court has clearly opined that if it is found that the matter pertains to A.Y.2015-16, no further adjudicatory exercise is required to be undertaken by the High Court, except to declare the Notice as being time barred in light of Rajeev Bansal (Supra). Page 4 of 5 JUNE 15, 2026 Mohite

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In the facts of the present case, it is an admitted fact that the impugned Notice under Section 148 is issued on or after 1st April 2021 and pertains to A.Y.2015-16. In these circumstances, the impugned Notice issued under Section 148 is clearly time barred as per the concession made by the learned Additional Solicitor General before the Hon’ble Supreme Court in the case of Rajeev Bansal (Supra). Accordingly, the Writ Petition succeeds and the impugned Notice issued under Section 148 is set aside. Consequently, any action taken or emanating from the said Notice is also hereby quashed and set aside. 6. Rule is made absolute in the aforesaid terms and the Writ Petition is also disposed of in terms thereof. However, there shall be no order as to costs.

7.

This order will be digitally signed by the Private Secretary/ Personal Assistant of this Court. All concerned will act on production by fax or email of a digitally signed copy of this order. [FIRDOSH P. POONIWALLA, J.] [B. P. COLABAWALLA, J.] Page 5 of 5 JUNE 15, 2026 Mohite

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