VINOD KUMAR HISSARIA vs. THE ASSISTANT COMMISSIONER OF INCOME TAX

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CW/10595/2023HC Rajasthan2025:RJ-JD:42606-DB23 September 2025Author: K.R. SHRIRAM, SANDEEP TANEJA3 pages
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What did the High Court hold?

The High Court quashed and set aside the notice dated March 29, 2023, issued under Section 148 of the Income Tax Act, 1961. The Court agreed with the petitioner's submission that the notice was invalid as it was issued by a Jurisdictional Assessing Officer (JAO) and not a Faceless Assessing Officer (FAO), a position supported by its previous decisions in Shree Cement Limited, Sharda Devi Chhajer, and the Bombay High Court's decision in Hexaware Technologies Ltd. The Court granted the liberty sought by the Revenue to revive the notice if the Apex Court were to interfere with these precedents. The petitioner reserved the right to raise other grounds at an appropriate stage. The petition was disposed of, keeping open all rights and contentions of the parties.

What were the facts?

The petitioner, Vinod Kumar Hissaria, is challenging a notice dated March 29, 2023, issued under Section 148 of the Income Tax Act, 1961. The petitioner is the proprietor of M/s Vishwanath Hissaria And Co. The respondents are the Assistant Commissioner of Income Tax, the Central Board of Direct Taxation, and the Union of India. The procedural history involves the issuance of the notice and the subsequent challenge by the petitioner before the High Court. The petitioner did not press all grounds, focusing on a specific legal contention.

What were the issues?

1. Whether a notice issued under Section 148 of the Income Tax Act, 1961, by a Jurisdictional Assessing Officer (JAO) instead of a Faceless Assessing Officer (FAO) is valid? (Question of law) Assessee's Contention: The petitioner argued that the notice dated March 29, 2023, under Section 148 of the Income Tax Act, 1961, is invalid because it was issued by a Jurisdictional Assessing Officer (JAO) and not a Faceless Assessing Officer (FAO). The petitioner relied on the High Court's judgments in Shree Cement Limited, Sharda Devi Chhajer, and Hexaware Technologies Ltd. Revenue's Contention: The Revenue acknowledged that one of the grounds raised by the petitioner is covered by a judgment of the Court. The Revenue stated that a Special Leave Petition (SLP) has been filed against the Hexaware Technologies Ltd. judgment, and notice has been issued. The Revenue requested liberty to revive the notice under Section 148 if the Apex Court interferes with the aforementioned judgments.

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:42606-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR D.B. Civil Writ Petition No. 10595/2023 Vinod Kumar Hissaria S/o Shir Shiv Kumar Hissaria, Aged About 63 Years, Proprietor Of M/s Vishwanath Hissaria And Co., Having Shop At Shop No. 10A, Nai Dhan Mandi, Hanumangarh, Rajasthan 335512 ----Petitioner Versus 1. The Assistant Commissioner Of Income Tax, Acit Circle - 1, Aayakar Bhawan, Rani Bazar, Bikaner, Rajasthan 334001 2. Central Board Of Direct Taxation, Through Its Chairman, Ministry Of Finance, North Block, Cbdt, New Delhi 11004 3. Union Of India, Through Its Secretary, Department Of Revenue, Ministry Of Finance, North Block, New Delhi 110004 ----Respondents For Petitioner(s) : Mr. Prateek Gatani. For Respondent(s) : Mr. K.K. Bissa. HON'BLE THE CHIEF JUSTICE MR. K.R. SHRIRAM HON'BLE MR. JUSTICE SANDEEP TANEJA

Order 23/09/2025

1.

Mr. Bissa agrees with Mr. Gattani that one of the grounds raised certainly is covered by a judgment of this Court.

2.

At the outset, Mr. Prateek Gattani states that the legal ground that the notice under Section 148 of the Income Tax Act, 1961 is not valid because it has been issued by Jurisdictional Assessing Officer (JAO) and not Faceless Assessing Officer (FAO), (Uploaded on 25/09/2025 at 12:37:50 PM) (Downloaded on 28/10/2026 at 12:29:51 AM)

[2025:RJ-JD:42606-DB] (2 of 3) [CW-10595/2023] has not been taken. Consequently, other grounds are not being pressed at this stage.

3.

Ground referred to is that the notice dated 29.03.2023 under Section 148 of the Income Tax Act, 1961 has been issued by a Jurisdictional Assessing Officer (JAO) and not Faceless Assessing Officer (FAO) and this Court in the case of Shree Cement Limited Vs. Assistant Commissioner of Income-Tax & Officer & Another2 and Hexaware Technologies Ltd. Vs. Assistant Commissioner of Income-tax, Circle 15(1)(2)3, has held that such a notice will be bad and not valid.

4.

At the same time, Mr. K.K. Bissa states 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.

Mr. Prateek Gattani states that in view of the above, for the present, petitioner will reserve his right to raise other grounds at an appropriate stage.

6.

Therefore, keeping open all rights and contentions of parties, we quash and set aside notice dated 29.03.2023 issued under Section 148 of the Act with liberty as prayed. 1 DB Civil Writ Petition No.10540/2024, dated 05.08.2025 at Jaipur Bench (unreported) 2 2025 SCC OnLine 3386 3 [2024] 162 taxmann.com 225(Bombay) (Uploaded on 25/09/2025 at 12:37:50 PM) (Downloaded on 28/10/2026 at 12:29:51 AM)

[2025:RJ-JD:42606-DB] (3 of 3) [CW-10595/2023]

7.

Petition disposed.

8.

Consequently, all pending applications, if any, also stand disposed. (SANDEEP TANEJA),J (K.R. SHRIRAM),CJ 14-a.asopa/- Powered by TCPDF (www.tcpdf.org) (Uploaded on 25/09/2025 at 12:37:50 PM) (Downloaded on 28/10/2026 at 12:29:51 AM)

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