KAUSHALYA DEVI CHAYAL vs. THE DEPUTY COMMISSIONER OF INCOME TAX

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CW/22320/2025HC Rajasthan2025:RJ-JD:48774-DB13 November 2025Bench: VINIT KUMAR MATHUR, BIPIN GUPTA2 pages
AI SummaryRemanded

What did the High Court hold?

The Tribunal, following the decision in M/s. Jagtamba Timber Mart (supra), quashed and set aside the notice dated March 24, 2024, issued under Section 148 of the Income Tax Act, 1961, and the assessment order dated March 21, 2025, passed under Section 147 of the Act, along with consequential proceedings. The court granted liberty to the Revenue to revive the notice issued under Section 148 of the Act if the Apex Court interferes with the judgment in Hexaware Technologies Ltd. (supra), Sharda Devi Chhajer (supra), or Shree Cement Limited (supra). The petitioner's counsel undertook to withdraw the appeal already filed. The court kept open all rights and contentions of the parties. The petition was disposed of with the liberty granted. The ratio decidendi is that where a coordinate bench has decided a similar matter, and the revenue seeks liberty to revive proceedings based on potential future Supreme Court intervention, the proceedings can be quashed with such liberty reserved.

What were the facts?

The petitioner, Kaushalya Devi Chayal, filed a writ petition before the Rajasthan High Court at Jodhpur challenging a notice dated March 24, 2024, issued under Section 148 of the Income Tax Act, 1961, and an assessment order dated March 21, 2025, passed under Section 147 of the Act, along with consequential proceedings. The respondent is the Deputy Commissioner of Income Tax, Central Circle - 1, Bikaner. The parties agreed that the controversy was covered by a prior judgment of a coordinate bench in D.B. Civil Writ Petition No. 22164/2025 (M/s. Jagtamba Timber Mart Vs. The Deputy Commissioner of Income Tax), decided on November 12, 2025. The amount in dispute is not specified. The procedural history involves the issuance of the notice and assessment order, and the present writ petition challenging them.

What were the issues?

1. Whether the notice dated March 24, 2024, issued under Section 148 of the Income Tax Act, 1961, and the assessment order dated March 21, 2025, passed under Section 147 of the Act, along with consequential proceedings, are liable to be quashed and set aside. Assessee's Contentions: The petitioner's counsel agreed that the controversy was covered by the judgment in M/s. Jagtamba Timber Mart. They stated that other grounds raised were not being pressed and would be taken up at an appropriate stage if required. The petitioner's counsel also agreed to withdraw the appeal already filed within two weeks. Revenue's Contentions: The revenue's counsel submitted that in the judgment of Hexaware Technologies Ltd. (supra), a Special Leave Petition was preferred by the Revenue and notice was issued. The counsel stated that in view of the law as it stands today, the court could grant the prayer of the petitioner, but in case the Apex Court interferes with the judgment in Hexaware Technologies Ltd. (supra), Sharda Devi Chhajer (supra) or Shree Cement Limited (supra), then the Revenue should be given liberty to revive the notice issued under Section 148 of the Act.

Which sections of the Income-tax Act were involved?

Section 148,Section 147

AI-generated summary — verify with the full judgment below

[2025:RJ-JD:48774-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR D.B. Civil Writ Petition No. 22320/2025 Kaushalya Devi Chayal W/o Shri Sukhdev Chayal, Aged About 44 Years, Resident Of Near Ratan Sagar Well, B Sethia Gali, Bikaner, Rajasthan -334001 ----Petitioner Versus The Deputy Commissioner Of Income Tax, Central Circle - 1, Bikaner Having Its Address At Room No72, Ground Floor, Aayakar Bhawan, Rani Bazar, Bikaner, Rajasthan, 334001. ----Respondent For Petitioner(s) : Mr. Rajat Arora Mr. Dinesh Bothra Mr. Lucky Rajpurohit For Respondent(s) : Mr. KK Bissa HON'BLE MR. JUSTICE VINIT KUMAR MATHUR HON'BLE MR. JUSTICE BIPIN GUPTA Order 13/11/2025 1. Learned counsel for the parties are in agreement that the controversy involved in the present case is squarely covered by the judgment rendered by a coordinate Bench of this Court in D.B. Civil Writ Petition No.22164/2025 (M/s. Jagtamba Timber Mart Vs. The Deputy Commissioner of Income Tax) decided on 12.11.2025 in the following terms:- “12. In these circumstances, notice dated 24th March 2024 issued under Section 148 of the Act and assessment order dated 21th March 2025 passed under Section 147 of the Act along with consequential proceedings are liable to be quashed and set aside. 13. At this stage, Mr. Bissa submits that in judgment of Hexaware Technologies Ltd. (supra), Revenue has preferred a Special Leave Petition and (Uploaded on 14/11/2025 at 04:10:11 PM) (Downloaded on 28/10/2026 at 12:34:08 AM)

[2025:RJ-JD:48774-DB] (2 of 2) [CW-22320/2025] 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. 14. In view of the above, counsel for the petitioner states that other grounds raised are not being pressed upon and they will be taken at appropriate stage, if required. 15. Therefore, keeping open all rights and contentions of parties, we quash and set aside notice dated 24th March 2024 issued under Section 148 of the Act and assessment order dated 21th March 2025 passed under Section 147 of the Act along with consequential proceedings, with liberty as prayed. 16. In view of the above, learned counsel for the petitioner undertakes to apply within two weeks to withdraw the appeal already filed. 17. Undertaking accepted. 18. Petition disposed. 19. Consequently, all pending applications, if any, also stand disposed.” 2. In view of the submissions made before this Court, the present Writ Petition is also disposed of in terms of the order passed in M/s Jagtamba Timber Mart (supra). (BIPIN GUPTA),J (VINIT KUMAR MATHUR),J 106-nitin/- Powered by TCPDF (www.tcpdf.org) (Uploaded on 14/11/2025 at 04:10:11 PM) (Downloaded on 28/10/2026 at 12:34:08 AM)

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