NISAR MOHIBULLAH KHAN vs. THE CHIEF COMMISSIONER INCOME TAX AND OTHERS

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WP/6349/2025HC BombayHCBM03017826202512 January 2026Bench: HON'BLE SHRI JUSTICE ARUN R. PEDNEKER,HON'BLE JUSTICE VAISHALI PATIL-JADHAV3 pages
AI SummaryRemanded

What did the High Court hold?

The Tribunal held that the Jurisdictional Assessing Officer (JAO) does not have the jurisdiction to issue a notice under Section 148 of the Income Tax Act, 1961, after March 29, 2022, when the faceless reassessment scheme was promulgated. This decision is based on the consistent view of the Bombay High Court, particularly its judgment in Hexaware Technologies Ltd. vs. Assistant Commissioner of Income-tax. The Court found that the scheme mandates that such notices can only be issued by the Faceless Assessing Officer (FAO). Consequently, the impugned notice issued by the JAO and all consequential proceedings 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 Supreme Court. The Court clarified that if the petition is revived, it would be decided on its merits, considering other issues raised by the petitioner.

What were the facts?

The petitioner, Nisar Mohibullah Khan, challenged a notice issued under Section 148 of the Income Tax Act, 1961, by the Jurisdictional Assessing Officer (JAO). The petitioner argued that after the promulgation of the faceless reassessment scheme on March 29, 2022, the JAO lacked the jurisdiction to issue such notices, and only the Faceless Assessing Officer (FAO) could do so. The respondents, the Income Tax Department, relied on a Delhi High Court decision suggesting concurrent jurisdiction for both JAO and FAO. The Bombay High Court, however, consistently followed its own prior ruling in Hexaware Technologies Ltd. vs. Assistant Commissioner of Income-tax.

What were the issues?

1. Whether the Jurisdictional Assessing Officer (JAO) has the jurisdiction to issue a notice under Section 148 of the Income Tax Act, 1961, after the commencement of the faceless reassessment scheme on March 29, 2022? (Question of law) Assessee's contention: The JAO has no jurisdiction to issue a Section 148 notice post-March 29, 2022, as per the faceless reassessment scheme. The assessee relies on the Bombay High Court's decision in Hexaware Technologies Ltd. vs. Assistant Commissioner of Income-tax. Revenue's contention: Both the JAO and the Faceless Assessing Officer (FAO) have concurrent jurisdiction to issue a Section 148 notice. The revenue cites the Delhi High Court's decision in T.K.S. Builders Pvt. Ltd., GDR Finance and Leasing Private Limited vs. Income Tax Officer.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

1 IN THE HIGH COURT OF JUDICATURE AT BOMBAY BENCH AT AURANGABAD. WRIT PETITION NO. 6349 OF 2025 Nisar Mohibullah Khan ...Petitioner Versus The Chief Commissioner, Income Tax, Pune & Ors. ...Respondents ….. Mr. Raviraj R. Chandak - Advocate for the Petitioner Mr. Alok M. Sharma - Advocate for Respondent Nos. 1 to 4 ….. CORAM : ARUN R. PEDNEKER AND VAISHALI PATIL-JADHAV, JJ. Dated : JANUARY 12, 2026 PER COURT :-

1.

By this petition, the petitioner challenges the impugned notice under Section 148 of the Income Tax Act, 1961 issued by the Jurisdictional Assessing Officer (JAO). 2. This Court has consistently relied upon the decision of the Division Bench of this Court in the case of Hexaware Technologies Ltd. Vs. Assistant Commissioner of Income-tax Circle 15(1)(2)(2024) 162 taxmann.com 225 (Bombay) and has held that the Jurisdictional Assessing Officer (JAO) has no jurisdiction to issue notice under Section 148 of the Income Tax Act, 1961 after the faceless reassessment scheme 2026:BHC-AUG:1052-DB

2 being promulgated on 29th March 2022 and relying upon the judgment of Hexaware Technologies Ltd. (supra), this court has allowed writ petitions in large number. Accordingly, we also propose to pass the similar order. 3. The learned counsel appearing for respondents/Income Tax Department has relied upon the decision of Delhi High Court in the case of T.K.S. Builders Pvt. Ltd., GDR Finance and Leasing Private Limited Vs. Income Tax Officer dated 28.10.2024 in WP (C) 1968/2023 and other connected matters and submits that the Delhi High Court has held that JAO as well as Faceless Assessing Officer (FAO) both would have concurrent jurisdiction to issue notice under Section 148. 4. However, considering that this Court by relying upon the judgment of this Court in the case of Hexaware Technologies Ltd. (supra) has consistently held that notice under Section 148 of Income Tax Act could only be issued by FAO and not by JAO after 29.3.2022, we proceed to pass the following order. 5. We accordingly set aside the impugned notice issued under Section 148 of the Income Tax Act and all other proceedings/orders emanating therefrom.

3 6. We however grant liberty to the Revenue to revive this 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. In the event the above petition stands revived, there will be a stay to the implementation and operation 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. 7. 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. 8. Writ Petition is disposed of in the above terms. (VAISHALI PATIL-JADHAV, J.) ( ARUN R. PEDNEKER, J. ) GGP Signed by: Gajanan G. Punde Designation: PA To Honourable Judge Date: 13/01/2026 14:51:46

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