M/S SUNSHINE EXPORTS vs. THE INCOME TAX OFFICER

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CW/1066/2026HC Rajasthan2026:RJ-JD:2822-DB16 January 2026Author: ARUN MONGA, YOGENDRA KUMAR PUROHIT3 pages
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What did the High Court hold?

The Tribunal held that the notice dated 27.03.2025, issued under Section 148 of the Income Tax Act, 1961, for Assessment Year 2023-2024, along with all consequential proceedings, is quashed for lack of jurisdiction. The reasoning was based on the respectful agreement with the view taken by the Division Bench of the Rajasthan High Court in Sharda Devi Chhajer and the Bombay High Court in Hexaware Technologies Ltd., which established that jurisdiction vests exclusively with the Faceless Assessing Officer. Therefore, notices issued by the Jurisdictional Assessing Officer are legally unsustainable as long as these judgments hold the field. The operative direction is to quash the impugned notice. Liberty was granted to the Revenue to initiate proceedings afresh through the Faceless Assessing Officer, subject to compliance with limitation and other legal requirements. It was further clarified that if the judgments in Hexaware Technologies Ltd. and Sharda Devi Chhajer are reversed or materially modified by the Supreme Court, the Revenue shall be at liberty to act accordingly. The other grounds raised by the petitioner were not pressed at this stage.

What were the facts?

The assessee, M/s Sunshine Exports, filed a writ petition challenging a notice dated 27.03.2025 issued under Section 148 of the Income Tax Act, 1961, for Assessment Year 2023-2024. The notice was issued by the Income Tax Officer, Ward - 1(2), Jodhpur. The Revenue, represented by the learned counsel, conceded that the issue was covered by previous judgments of the Rajasthan High Court in Sharda Devi Chhajer v. Income Tax Officer & Anr. and the Bombay High Court in Hexaware Technologies Ltd. v. Assistant Commissioner of Income-Tax. These judgments held that notices issued by a Jurisdictional Assessing Officer, instead of a Faceless Assessing Officer, are without jurisdiction. The Revenue also informed the court that a Special Leave Petition had been filed against the Hexaware Technologies Ltd. judgment, and notice had been issued by the Supreme Court.

What were the issues?

1. Whether the notice dated 27.03.2025 issued under Section 148 of the Income Tax Act, 1961, for Assessment Year 2023-2024, by the Jurisdictional Assessing Officer, is without jurisdiction and liable to be quashed? (Question of law, concerning the validity of notice under Section 148). Assessee's Contention: The assessee implicitly argued that the notice was bad in law as it was issued by the Jurisdictional Assessing Officer, relying on the precedents of Sharda Devi Chhajer and Hexaware Technologies Ltd. Revenue's Contention: The Revenue conceded that the issue was covered by the judgments in Sharda Devi Chhajer and Hexaware Technologies Ltd., which held that notices issued by the Jurisdictional Assessing Officer instead of the Faceless Assessing Officer are without jurisdiction. The Revenue sought liberty to revive proceedings if these judgments were set aside or materially modified by the Supreme Court, as a Special Leave Petition had been filed against the Hexaware Technologies Ltd. judgment.

Which sections of the Income-tax Act were involved?

Section 148

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Cause title — parties, addresses and appearances
[2026:RJ-JD:2822-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR D.B. Civil Writ Petition No. 1066/2026 M/s Sunshine Exports, Through Its Partner Shilpi Mertia W/o Himanshu Mertia, Age About 45 Years, Plot No. 155,patrakar Colony, New Power House Road Circ,jodhpur 342001, Rajasthan.pan Adbfs7159J ----Petitioner Versus The Income Tax Officer, Ward - 1(2), Jodhpur Having Its Address Ataayakar Bhawan, Paota C Road, Jodhpur. ----Respondent For Petitioner(s) : Mr. Harshvarshan Singh Chundawat For Respondent(s) : Mr. KK Bissa HON'BLE MR. JUSTICE ARUN MONGA HON'BLE MR. JUSTICE YOGENDRA KUMAR PUROHIT

Order 16/01/2026

1.

The present writ petition is filed against the impugned notice dated 27.03.2025 issued under Section 148 of the Income Tax Act, 1961 for Assessment Year 2023-2024. 2. On a court query, learned counsel for the respondents, at the outset, fairly submits that the controversy in the present writ petitions is squarely covered by the judgment of this Court in Sharda Devi Chhajer v. Income Tax Officer & Anr.1, which, inturn has followed the similar prior view taken by the Bombay High Court in Hexaware Technologies Ltd. v. Assistant Commissioner of Income-Tax2, wherein it has been held that 1 2025 SCC OnLine Raj 3386 2 2024 SCC OnLine Bom 1249 (Uploaded on 20/01/2026 at 06:38:38 PM) (Downloaded on 28/10/2026 at 12:43:18 AM)

[2026:RJ-JD:2822-DB] (2 of 3) [CW-1066/2026] notices issued by the Jurisdictional Assessing Officer, instead of the Faceless Assessing Officer, are without jurisdiction.

3.

It is further submitted that the Revenue has preferred a Special Leave Petition against the judgment in Hexaware Technologies Ltd. and notice has been issued by the Hon’ble Supreme Court.

4.

Accordingly, learned counsel for the respondent would submit that in case this court is inclined to allow the petition, liberty be granted in favour of the Revenue to revive the proceedings in the event the judgments in Hexaware Technologies Ltd. (supra) and Sharda Devi Chhajer (supra) are set aside or materially modified by the Hon’ble Apex Court. Request seems fair.

5.

We are in respectful agreement with the view taken by Division Bench of this court in Sharda Devi Chhajer (supra) and Hexaware Technologies Ltd. (supra), holding that jurisdiction vests exclusively with the Faceless Assessing Officer. Accordingly, so long the judgments, ibid, continue to hold the field, issuance of notices by the Jurisdictional Assessing Officer is legally unsustainable.

6.

In the premise, keeping all rights and contentions, as raised herein, the impugned notice dated 27.03.2025 issued under Section 148 of the Income Tax Act, 1961 for A.Y. 2023-2024, along with all proceedings consequential thereto, are quashed for lack of jurisdiction.

7.

Liberty is, however, granted to the respondents-Revenue to initiate proceedings afresh through the Faceless Assessing Officer, (Uploaded on 20/01/2026 at 06:38:38 PM) (Downloaded on 28/10/2026 at 12:43:18 AM)

[2026:RJ-JD:2822-DB] (3 of 3) [CW-1066/2026] in accordance with law within the prevailing statutory framework, subject to compliance of limitation and other legal requirements.

8.

It is clarified that in the event the judgments in Hexaware Technologies Ltd. (supra) and Sharda Devi Chhajer (supra) are reversed/set aside or materially modified by the Hon’ble Supreme Court, the respondent-Revenue shall be at liberty to act afresh in accordance thereof.

9.

In view of the above, learned counsel for the petitioner states that the other grounds raised herein are not pressed at this stage and be kept open to be urged, if required, at an appropriate later stage.

10.

Accordingly, the writ petition stands disposed of.

11.

Pending application, if any, also stands disposed of. (YOGENDRA KUMAR PUROHIT),J (ARUN MONGA),J 104-raksha/- Powered by TCPDF (www.tcpdf.org) (Uploaded on 20/01/2026 at 06:38:38 PM) (Downloaded on 28/10/2026 at 12:43:18 AM)

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