MRS. PRIYANKA SINGHAL vs. ASSISTANT COMMISSIONER OF INCOME TAX (ACIT)

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CW/23564/2025HC Rajasthan2025:RJ-JD:54210-DB16 December 2025Author: PUSHPENDRA SINGH BHATI, SANJEET PUROHIT3 pages
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What did the High Court hold?

The Court held that so long as the law declared in Sharda Devi Chhajer and Hexaware Technologies Ltd., which vests jurisdiction with the Faceless Assessing Officer, continues to hold the field, notices issued by the Jurisdictional Assessing Officer are not legally sustainable. Consequently, the impugned notice dated 15.02.2024 under Section 148A(3) and the consequential notice dated 11.03.2025 under Section 148, along with all consequential proceedings, were quashed and set aside for being without jurisdiction. The Court clarified that liberty is reserved for the Revenue to proceed afresh through the Faceless Assessing Officer, strictly in accordance with law and the prevailing statutory framework, subject to limitations and other legal requirements. Furthermore, the Revenue was granted liberty to act in accordance with law if the judgments in Hexaware Technologies Ltd., Sharda Devi Chhajer, or Shree Cement Limited are reversed, set aside, or materially modified by the Supreme Court. The petitioner stated other grounds were not pressed and would be taken up later, undertaking to withdraw the appeal filed.

What were the facts?

The petitioner, Mrs. Priyanka Singhal, filed a writ petition challenging notices issued under Section 148A(3) and Section 148 of the Income Tax Act, 1961. The notices were issued by the Jurisdictional Assessing Officer (JAO). The respondents, including the Assistant Commissioner of Income Tax and other revenue authorities, acknowledged that the issue was covered by previous judgments of the Rajasthan High Court in Sharda Devi Chhajer vs. The Income Tax Officer & Another and the Bombay High Court in Hexaware Technologies Ltd. vs. Assistant Commissioner of Income-Tax, which held that notices issued by the JAO instead of the Faceless Assessing Officer (FAO) are invalid. The Revenue noted that a Special Leave Petition was filed against the Hexaware Technologies Ltd. judgment, and notice had been issued by the Supreme Court.

What were the issues?

1. Whether notices issued by the Jurisdictional Assessing Officer (JAO) under Section 148A(3) and Section 148 of the Income Tax Act, 1961, are invalid when the assessment proceedings should have been conducted by the Faceless Assessing Officer (FAO)? (Question of law) Assessee's Contention: The petitioner implicitly relies on the principle that notices issued by the wrong authority are invalid, as established in the cited High Court judgments. Revenue's Contention: The Revenue conceded that the controversy is covered by the judgments in Sharda Devi Chhajer and Hexaware Technologies Ltd. However, they requested liberty to revive proceedings if these judgments are set aside or materially modified by the Supreme Court, as an SLP had been filed against the Hexaware Technologies Ltd. decision. They also stated they were acting under the mandate of ITAT directions.

Which sections of the Income-tax Act were involved?

Section 148A,Section 148

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
[2025:RJ-JD:54210-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR D.B. Civil Writ Petition No. 23564/2025 Mrs. Priyanka Singhal W/o Mohit Singhal, Aged About 40 Years, R/o 81, 1St A Road, Sardarpura, Jodhpur - 342003 (Raj.). ----Petitioner Versus 1. Assistant Commissioner Of Income Tax (Acit), Dc Central Circle 1, Jodhpur, Aayakar Bhawan, Paota Road, Jodhpur (Raj.) - 342010. 2. Principal Chief Commissioner Of Income Tax, (National Faceless Assessment Centre), 4Th Floor, Mayur Bhawan, Connaught Circle, New Delhi - 110001. 3. Central Board Of Direct Taxes, Cbdt Headquarters, North Block- (Department Of Revenue), New Delhi - 110001. 4. Union Of India, Through Secretary, Ministry Of Finance, Department Of Revenue, North Block, New Delhi - 110001. ----Respondents For Petitioner(s) : Mr. Pushkar Taimni. For Respondent(s) : Mr. K.K. Bissa. HON'BLE DR. JUSTICE PUSHPENDRA SINGH BHATI HON'BLE MR. JUSTICE SANJEET PUROHIT

Order 16/12/2025

1.

Mr. K.K. Bissa, learned counsel appearing for the respondents, at the outset, fairly submits that the controversy involved in the present writ petitions is squarely covered by the judgment of this Court in Sharda Devi Chhajer vs. The Income Tax Officer & Another [2025 SCC OnLine Raj 3386], which has followed the judgment of the Bombay High Court in Hexaware Technologies Ltd. vs. Assistant Commissioner of Income-Tax, Circle- 15(1)(2) [2024] 162 taxmann.com 225 (Bom.). It is held therein that notices issued by the Jurisdictional Assessing Officer (JAO), instead of the Faceless Assessing Officer, are invalid.

2.

Learned counsel, however, submits that the respondents are (Uploaded on 20/12/2025 at 03:42:58 PM) (Downloaded on 27/10/2026 at 11:17:04 PM)

[2025:RJ-JD:54210-DB] (2 of 3) [CW-23564/2025] acting under the mandate of the directions issued by the learned ITAT. He further submits that against the judgment in Hexaware Technologies Ltd. (supra), the Revenue has preferred a Special Leave Petition before the Hon’ble Supreme Court and notice has been issued. Learned counsel, therefore, submits that while the prayer of the petitioner may be granted in view of the prevailing legal position, liberty be reserved in favour of the Revenue to revive the proceedings in the event the judgments in Hexaware Technologies Ltd. (supra), Sharda Devi Chhajer (supra) or Shree Cement Limited (supra) are set aside or materially modified by the Hon’ble Apex Court.

3.

This Court finds that so long as the law declared in Sharda Devi Chhajer (supra) and Hexaware Technologies Ltd. (supra) holding that the jurisdiction vests with the Faceless Assessing Officer continues to hold the field, issuance of notices by the Jurisdictional Assessing Officer would not be legally sustainable.

4.

Accordingly, this Court directs that, keeping open all rights and contentions of parties, the impugned notice dated 15.02.2024 (Annexure-1) issued under Section 148A(3) of the Income Tax Act, 1961, as well as the consequential notice dated 11.03.2025 (Annexure-2) issued under Section 148 of the Income Tax Act, 1961, along with all proceedings consequential thereto, are hereby quashed and set aside, being without jurisdiction.

5.

However, this Court clarifies that liberty is reserved in favour of the respondent-Revenue to proceed afresh through the Faceless Assessing Officer (FAO), strictly in accordance with law and the (Uploaded on 20/12/2025 at 03:42:58 PM) (Downloaded on 27/10/2026 at 11:17:04 PM)

[2025:RJ-JD:54210-DB] (3 of 3) [CW-23564/2025] prevailing statutory framework, subject to limitation and other legal requirements.

6.

It is further made clear that in the event the judgments in Hexaware Technologies Ltd. (supra), Sharda Devi Chhajer (supra) or Shree Cement Limited (supra) are reversed, set aside, or materially modified by the Hon’ble Supreme Court, the respondent-Revenue shall be at liberty to act in accordance with law.

7.

In view of above, counsel for petitioner states that other grounds raised are not being pressed upon and they will be taken at appropriate stage, if required. Further, learned counsel for the petitioner undertakes to apply within two weeks to withdraw the appeal already filed.

8.

Undertaking accepted.

9.

Accordingly, the writ petitions stand disposed of. All pending applications, if any, also stand disposed of. (SANJEET PUROHIT),J (DR. PUSHPENDRA SINGH BHATI),J 22-sumer/- Powered by TCPDF (www.tcpdf.org) (Uploaded on 20/12/2025 at 03:42:58 PM) (Downloaded on 27/10/2026 at 11:17:04 PM)

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