VINAYAK TRADERS vs. JOINT COMMISSIONER OF INCOME TAX

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CW/17250/2025HC Rajasthan2025:RJ-JD:40761-DB11 September 2025Author: PUSHPENDRA SINGH BHATI, SANDEEP TANEJA2 pages
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What did the High Court hold?

The High Court quashed and set aside the notice dated 26.06.2025 issued under Section 148 of the Income-tax Act, 1961. The Court agreed with the petitioner's submission that the notice was issued by the Jurisdictional Assessing Officer (JAO) and not the Faceless Assessing Officer (FAO), citing the precedent established in Hexaware Technologies Ltd., Sharda Devi Chhajer, and Shree Cement Limited. The Court granted the revenue the liberty to revive the notice if the Supreme Court were to interfere with the aforementioned judgments. The petition was disposed of with this liberty reserved, keeping open the rights and contentions of both parties. No specific amount in dispute was recorded.

What were the facts?

The petitioner, Vinayak Traders, a partnership firm, challenged a notice issued under Section 148 of the Income-tax Act, 1961. The primary contention was that the notice was issued by the Jurisdictional Assessing Officer (JAO) and not by a Faceless Assessing Officer (FAO). The judgment notes that the notice was indeed issued by the charged JAO. The petitioner relied on several High Court judgments to support their claim. The revenue acknowledged the current legal position but sought liberty to revive the notice if the Supreme Court were to interfere with the aforementioned judgments.

What were the issues?

1. Whether a notice issued under Section 148 of the Income-tax Act, 1961, by the Jurisdictional Assessing Officer (JAO) is valid, as opposed to a notice issued by a Faceless Assessing Officer (FAO)? (Question of law) Assessee's Contentions: The petitioner argued that the notice under Section 148 was invalid because it was issued by the JAO and not the FAO. They relied on the decisions in Hexaware Technologies Ltd. Vs. Assistant Commissioner of Income-tax, Circle 15(1)(2), Sharda Devi Chhajer Vs. The Income Tax Officer & Another, and Shree Cement Limited Vs. Assistant Commissioner of Income-Tax & Others. Revenue's Contentions: The revenue acknowledged the correctness of the petitioner's submission regarding the current legal position. However, they requested liberty to revive the notice under Section 148 if the Supreme Court were to overturn the judgments in Hexaware Technologies Ltd., Sharda Devi Chhajer, or Shree Cement Limited.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
[2025:RJ-JD:40761-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR D.B. Civil Writ Petition No. 17250/2025 Vinayak Traders, A Partnership Firm, Having Its Principal Place Of Business At 104, 4-5, Kardhar Complex, Hiran Magri, Sector 14, Udaipur, Rajasthan Through Its Partner Manoz Kumar S/o Shree Ram Lal Agarwal, Aged About 57 Years, R/o Ward No. 16, Fatehnagar, Changeri, Udaipur, 313205, Rajasthan. ----Petitioner Versus 1. Joint Commissioner Of Income Tax, Range-2, Aayakar Bhawan, Sub City Centre, Savina, Udaipur. 2. Principal Chief Commissioner Of Income Tax (National E Assessment Centre), 2Nd Floor, E Ramp, Jawaharlal Nehru Stadium Delhi - 110003 3. Central Board Of Direct Taxes, Cbdt Headquarters North Block (Department Of Revenue), New Delhi - 110001 4. Income Tax Officer, Ito Ward-2(1), Aayakar Bhawan, Sub City Centre, Savina, Udaipur. ----Respondents For Petitioner(s) : Mr. Sharad Kothari For Respondent(s) : Mr. K.K. Bissa HON'BLE DR. JUSTICE PUSHPENDRA SINGH BHATI HON'BLE MR. JUSTICE SANDEEP TANEJA

Order 11/09/2025

1.

One of the primary grounds raised is that notice under Section 148 of the Income-tax Act, 1961 has been issued by Jurisdictional Assessing Officer (JAO) and not Faceless Assessing Officer (FAO).

2.

Indisputably, the notice to petitioner has been issued by the charged JAO and not FAO. (Uploaded on 15/09/2025 at 11:50:40 AM) (Downloaded on 28/10/2026 at 12:28:11 AM)

[2025:RJ-JD:40761-DB] (2 of 2) [CW-17250/2025]

3.

Mr. Sharad Kothari, learned counsel for petitioner is correct in Income-tax, Circle 15(1)(2), Sharda Devi Chhajer Vs. The Income Tax Officer & Another and Shree Cement Limited Vs. Assistant Commissioner of Income-Tax & Others.

4.

Shri Bissa submitted that in Hexaware Technologies Ltd. (supra), Revenue has preferred a Special Leave Petition and notice has been issued. Counsel states that in view of the law as it stands today, Court may grant the prayer of petitioner but in case the Apex Court interferes with judgment in Hexaware Technologies Ltd. (supra), Sharda Devi Chhajer (supra) or Shree Cement Limited (supra), then Revenue should be given liberty to revive the notice issued under Section 148 of the Act.

5.

Therefore, keeping open rights and contentions of parties, we quash and set aside notice dated 26.06.2025 (Annexure-2) issued under Section 148 of the Act with liberty as prayed.

6.

Petition is disposed of.

7.

Consequently, all pending applications, if any, also stand disposed of. (SANDEEP TANEJA), J (DR. PUSHPENDRA SINGH BHATI),J 5-Ravi Khandelwal Powered by TCPDF (www.tcpdf.org) (Uploaded on 15/09/2025 at 11:50:40 AM) (Downloaded on 28/10/2026 at 12:28:11 AM)

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