BAJAJ ALLIANZ GENERAL INSURANCE COMPANY LIMITED vs. ASSISTANT COMMISSIONER OF INCOME TAX AND ORS

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WP/10613/2025HC BombayHCBM01039959202504 August 2025Bench: HON'BLE SHRI JUSTICE B.P. COLABAWALLA,HON'BLE SHRI JUSTICE FIRDOSH PHIROZE POONIWALLA3 pages
AI SummaryRemanded

What did the High Court hold?

The High Court held that the issue was squarely covered by its own Division Bench decision in Hexaware Technologies Ltd. V/S Assistant Commissioner of Income-tax, Circle 15(1)(2). Consequently, the Court was bound to follow that precedent. The impugned Notice issued under Section 148 of the Income Tax Act, 1961, and all consequential proceedings and orders were set aside. However, liberty was granted to the Revenue to revive the Writ Petition if the decision in Hexaware Technologies Ltd. is set aside by the Hon'ble Supreme Court. The Court clarified that revival could be sought by filing a Praecipe, and if the Supreme Court dismisses the SLP, there would be no question of revival. The Court also noted that if revived, the petition would be decided on its merits, considering other issues raised.

What were the facts?

The petitioner, Bajaj Allianz General Insurance Co. Ltd., filed a Writ Petition challenging a Notice issued under Section 148 of the Income Tax Act, 1961. The primary ground for challenge was that the Notice was issued by the Jurisdictional Assessing Officer, whereas the law mandates issuance by a Faceless Assessing Officer. The petitioner contended this was a fatal defect. The assessment year(s) are not specified. The respondents are the Assistant Commissioner of Income Tax, Circle 1(1), Pune, and others. The High Court of Judicature at Bombay heard the matter.

What were the issues?

1. Whether a Notice issued under Section 148 of the Income Tax Act, 1961, by a Jurisdictional Assessing Officer, when the law mandates issuance by a Faceless Assessing Officer, is a fatal defect and liable to be quashed? Assessee's contention: The Notice is invalid and must be quashed as it was issued by the wrong authority, citing the decision in Hexaware Technologies Ltd. V/S Assistant Commissioner of Income-tax, Circle 15(1)(2) [(2024) 162 taxmann.com 225 (Bombay)]. Revenue's contention: While acknowledging the Hexaware Technologies Ltd. decision, the Revenue stated that it has been challenged before the Hon'ble Supreme Court, and the matter is likely to be taken up soon. The Revenue conceded there was no stay on the Hexaware Technologies Ltd. judgment.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

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IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION WRIT PETITION NO. 10613 OF 2025 Bajaj Allianz General Insurance Co. Ltd. .. Petitioner Versus Asst. Commissioner of Income Tax, Circle 1(1), Pune & Ors. .. Respondents Ms. Vasanti B. Patel, Advocate for the Petitioner. Ms. Swapna Gokhale, Advocate for the Respondents.

CORAM : B. P. COLABAWALLA & FIRDOSH P. POONIWALLA, JJ. DATE : AUGUST 4, 2025. P. C. 1. Rule. Respondents waive service. With the consent of the parties, Rule made returnable forthwith and heard finally. 2. The above Writ Petition interalia challenges the Notice issued under Section 148 of the Income Tax Act, 1961 on various grounds. One of the grounds is that the Notice has been issued by the Jurisdictional Assessing Officer when the law mandates that it has to be issued by the Faceless Assessing Officer. This is a fatal defect and therefore the Notice has to be quashed, is the argument of the Petitioner. Page 1 of 3 AUGUST 4, 2025 Aswale ANJALI TUSHAR ASWALE Digitally signed by ANJALI TUSHAR ASWALE Date: 2025.08.13 12:04:07 +0530

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3.

It is the Petitioners’ contention that this issue is squarely covered by a decision of a Division Bench of this Court in the case of Hexaware Technologies Ltd. V/S Assistant Commissioner of Income-tax, Circle 15(1)(2) [(2024) 162 taxmann.com 225 (Bombay)]. 4. On the other hand, the learned advocate appearing on behalf of the Revenue stated that though it is true that this issue is concluded by the decision in Hexaware Technologies Ltd (supra), the said decision has been challenged before the Hon’ble Supreme Court, and the Hon’ble Supreme Court is likely to take up the matter shortly. The learned Counsel for the Revenue has fairly stated that there is no stay to the judgment in Hexaware Technologies Ltd (supra). 5. Considering these facts, we do not propose to keep the matter pending in this Court. Once it is fully covered by the decision in Hexaware Technologies Ltd (supra) we are bound to follow it. 6. We accordingly set aside the impugned Notice issued under Section 148 and all other proceedings/orders emanating therefrom. 7. We however grant liberty to the Revenue to revive the above Writ Petition in the event the decision in Hexaware Technologies Ltd Page 2 of 3 AUGUST 4, 2025 Aswale

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(supra) is set aside by the Hon’ble Supreme Court on this issue. We make it clear that it will not be necessary for the Revenue to file a separate Interim Application to seek a revival of this Petition and the same can be done simply by moving a Praecipe before this Court. It is needless to clarify that if the Hon’ble Supreme Court dismisses the SLP challenging the decision in Hexaware Technologies Ltd (supra), there would be no question of any revival. 8. We also make it clear that once the Petition is revived and restored, the same would have to be decided on its own merits considering that several other issues are also raised challenging the Notice issued under Section 148. 9. Rule is accordingly made absolute and the Writ Petition is also disposed of in terms thereof. However, there shall be no order as to costs. 10. This order will be digitally signed by the Private Secretary/ Personal Assistant of this Court. All concerned will act on production by fax or email of a digitally signed copy of this order. [FIRDOSH P. POONIWALLA, J.] [B. P. COLABAWALLA, J.] Page 3 of 3 AUGUST 4, 2025 Aswale

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