GULABA RAM vs. PRINCIPAL COMMISSIONER OF INCOME TAX 1 - JODHPUR

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CW/17275/2025HC Rajasthan2025:RJ-JD:40777-DB11 September 2025Author: PUSHPENDRA SINGH BHATI, SANDEEP TANEJA2 pages
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What did the High Court hold?

The Tribunal quashed and set aside the notice dated 28.03.2025 issued under Section 148 of the Income-tax Act, 1961. The primary reasoning was that the notice was issued by the Jurisdictional Assessing Officer (JAO) and not the Faceless Assessing Officer (FAO), which was found to be a significant procedural flaw. The Court relied on the submissions and the established precedents, including Hexaware Technologies Ltd., Sharda Devi Chhajer, and Shree Cement Limited, which dealt with similar issues regarding the authority issuing such notices. However, to protect the revenue's interest in case of a future change in legal interpretation by the Apex Court, the Court granted liberty to the revenue to revive the notice. This means the quashing is subject to the outcome of any potential Supreme Court intervention in the cited cases. The petition was disposed of with these directions.

What were the facts?

The petitioner, Gulaba Ram, challenged a notice issued under Section 148 of the Income-tax Act, 1961. The primary contention was that the notice was issued by a Jurisdictional Assessing Officer (JAO) and not a Faceless Assessing Officer (FAO), which the petitioner argued was contrary to the prevailing legal framework. The respondents, including the Principal Commissioner of Income Tax and other revenue authorities, acknowledged that the notice was indeed issued by the charged JAO. The case was heard by the High Court of Judicature for Rajasthan at Jodhpur.

What were the issues?

1. Whether a notice issued under Section 148 of the Income-tax Act, 1961, by a Jurisdictional Assessing Officer (JAO) is valid, or if it must be issued by a Faceless Assessing Officer (FAO)? (Question of law) Assessee's Contention: The petitioner argued that the notice under Section 148 was invalid as it was issued by the JAO and not the FAO. This position was supported by referring to precedents like Hexaware Technologies Ltd. Vs. Assistant Commissioner of Income-tax, Sharda Devi Chhajer Vs. The Income Tax Officer & Another, and Shree Cement Limited Vs. Assistant Commissioner of Income-Tax & Others. Revenue's Contention: The revenue acknowledged that the notice was issued by the JAO. They submitted that while the court might grant the petitioner's prayer based on the current law, the revenue should be granted liberty to revive the notice if the Supreme Court were to interfere with 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:40777-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR D.B. Civil Writ Petition No. 17275/2025 Gulaba Ram S/o Shri Surja Ram, Aged About 64 Years, R/o Ward No. 10, 3 Ml, Gram Panchayat 2 Ml, Sriganganagar, Rajasthan. ----Petitioner Versus 1. Principal Commissioner Of Income Tax 1 - Jodhpur, (Pcit Jodhpur), Aaykar Bhawan Paota C Road, Jodhpur. 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. Additional Commissioner Of Income Tax, Range 1, Aaykar Bhawan, Rani Bazar, Bikaner - 334001. 5. Income Tax Officer, Ito Ward 1, Sri Ganganagar. ----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.

3.

Mr. Sharad Kothari, learned counsel for petitioner is correct in submitting that this issue has been extensively dealt with in (Uploaded on 15/09/2025 at 11:57:03 AM) (Downloaded on 28/10/2026 at 12:28:24 AM)

[2025:RJ-JD:40777-DB] (2 of 2) [CW-17275/2025] 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 28.03.2025 (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 8-Ravi Khandelwal Powered by TCPDF (www.tcpdf.org) (Uploaded on 15/09/2025 at 11:57:03 AM) (Downloaded on 28/10/2026 at 12:28:24 AM)

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