NIKHIL DILIP NAIK vs. INCOME TAX OFFICER WARD 13(2) PUNE AND ORS

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WP/535/2026HC BombayHCBM01064991202521 January 2026Bench: HON'BLE SHRI JUSTICE B.P. COLABAWALLA,HON'BLE SHRI JUSTICE FIRDOSH PHIROZE POONIWALLA4 pages
AI SummaryRemanded

What did the High Court hold?

The Tribunal held that the Notice issued under Section 148 of the Income Tax Act, 1961, was invalid on the ground that it was issued by a Jurisdictional Assessing Officer instead of a Faceless Assessing Officer. The Tribunal was bound to follow the decision of the Division Bench of the Bombay High Court in Hexaware Technologies Ltd. V/s. Assistant Commissioner of Income-tax, circle 15(1)(2) [(2024) 162 taxmann.com 225 (Bombay)], as the present case was squarely covered by it. The Tribunal set aside the impugned Notice and all consequential proceedings. However, liberty was granted to the Revenue to revive the Writ Petition if the Supreme Court sets aside the Hexaware Technologies Ltd. decision. In the event of revival, the impugned notice would be stayed until further orders. If the Supreme Court dismisses the SLP against Hexaware Technologies Ltd., the petition would not be revived. The Tribunal clarified that upon revival, the petition would be decided on its merits, considering other issues raised.

What were the facts?

The petitioner, Nikhil Dilip Naik, 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 a Jurisdictional Assessing Officer, whereas the law mandates it should be issued by a Faceless Assessing Officer. The petitioner argued this was a fatal defect. The assessment year(s) are not specified. The respondents are the Income Tax Officer, Ward-13(2), Pune, and others. The procedural history involves the issuance of the notice under Section 148, the filing of the writ petition, and the waiver of service by the respondents. The matter was heard finally with the consent of the parties.

What were the issues?

1. Whether the Notice issued under Section 148 of the Income Tax Act, 1961, is invalid because it was issued by a Jurisdictional Assessing Officer instead of a Faceless Assessing Officer, as mandated by law? (Question of law) The Petitioner contended that the issuance of the Section 148 Notice by a Jurisdictional Assessing Officer, when the law requires it to be issued by a Faceless Assessing Officer, constitutes a fatal defect rendering the Notice invalid. The Petitioner relied on the decision of a Division Bench of the Bombay High Court in Hexaware Technologies Ltd. V/s. Assistant Commissioner of Income-tax, circle 15(1)(2) [(2024) 162 taxmann.com 225 (Bombay)]. The Revenue conceded that the issue was covered by the Hexaware Technologies Ltd. decision but stated that this decision had been challenged before the Hon'ble Supreme Court and was likely to be taken up shortly. The Revenue acknowledged that 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

12.wp.535.2026.doc

IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION WRIT PETITION NO.535 OF 2026 Nikhil Dilip Naik .. Petitioner Versus Income Tax Officer, Ward-13(2), Pune & Ors. .. Respondents Mr.Sanket Bora a/w Deepak Sharma, Archena Shetty, Vidhi Punmiya, Amiya Ranjan Das i/b SPCM Legal, Advocates for the Petitioner. Mr.Akhileshwar Sharma, Advocate for the Respondents.

CORAM : B. P. COLABAWALLA & FIRDOSH P. POONIWALLA, JJ. DATE : JANUARY 21, 2026 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 Page 1 of 4 JANUARY 21, 2026 Utkarsh UTKARSH KAKASAHEB BHALERAO Digitally signed by UTKARSH KAKASAHEB BHALERAO Date: 2026.01.23 15:17:57 +0530

12.wp.535.2026.doc

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. 3. It is the Petitioner’s 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. Page 2 of 4 JANUARY 21, 2026 Utkarsh

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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 (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 further ordered that in the event the above Petition is revived, there will be a stay to the operation and implementation of the impugned notice issued under Section 148 until further orders. 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. Page 3 of 4 JANUARY 21, 2026 Utkarsh

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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 4 of 4 JANUARY 21, 2026 Utkarsh

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