NANASO MANAGIRI PUJARI vs. INCOME-TAX OFFICER,WARD-1 , SANGLI AND ORS

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WP/7582/2025HC BombayHCBM07023224202530 July 2025Bench: HON'BLE SHRI JUSTICE B.P. COLABAWALLA,HON'BLE SHRI JUSTICE FIRDOSH PHIROZE POONIWALLA4 pages
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What did the High Court hold?

The High Court held that it was bound to follow the decision of its own Division Bench in Hexaware Technologies Ltd. V/S Assistant Commissioner of Income-tax, Circle 15(1)(2), as the present case was squarely covered by it. Consequently, the Court set aside the impugned Notice issued under Section 148 of the Income Tax Act, 1961, and all consequential proceedings or orders. The Court granted liberty to the Revenue to revive the Writ Petition if the Supreme Court were to set aside the Hexaware Technologies Ltd. decision. The revival could be sought by filing a Praecipe, without needing a separate interim application. If the Supreme Court dismissed the SLP challenging the Hexaware decision, there would be no revival. The Court also clarified that if the Petition were revived, it would be decided on its merits, considering other issues raised by the petitioner.

What were the facts?

The petitioner, Nanaso Managini Pujari, filed a Writ Petition challenging a Notice issued under Section 148 of the Income Tax Act, 1961. The petitioner argued that the Notice was invalid because it was issued by a Jurisdictional Assessing Officer, whereas the law mandates issuance by a Faceless Assessing Officer. The High Court had issued a Rule and granted interim relief staying the Section 148 Notice. The matter was heard finally with the consent of both parties. The Revenue acknowledged that the issue was covered by a Division Bench decision of the High Court in Hexaware Technologies Ltd. V/S Assistant Commissioner of Income-tax, Circle 15(1)(2), but stated that this decision was challenged before the Supreme Court. No stay was in place against the Hexaware Technologies judgment.

What were the issues?

1. Whether the Notice issued under Section 148 of the Income Tax Act, 1961, is invalid for having been issued by the Jurisdictional Assessing Officer instead of the Faceless Assessing Officer, as mandated by law? (Question of law) Assessee's Contention: The petitioner contended that the Notice under Section 148 is fatally defective and must be quashed because it was issued by the Jurisdictional Assessing Officer, contrary to the legal requirement of issuance by a Faceless Assessing Officer. The petitioner relied on the decision of the Bombay High Court in Hexaware Technologies Ltd. V/S Assistant Commissioner of Income-tax, Circle 15(1)(2). Revenue's Contention: The Revenue conceded that the issue was covered by the Hexaware Technologies Ltd. decision. However, they informed the Court that this decision had been challenged before the Hon'ble Supreme Court and was likely to be taken up soon. The Revenue fairly stated that there was no stay on the Hexaware Technologies judgment.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

97.7582.25-wp.doc

IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION WRIT PETITION NO. 7582 OF 2025 Nanaso Managini Pujari .. Petitioner Versus Income Tax Officer, Sangli & Ors. .. Respondents Ms.Rutuja Pawar a/w Ms.Hetal Laghave a/w Ms.Sneha More, Advocate for the Petitioner. Mr.Arjun Gupta, Advocate for Respondent.

CORAM: B. P. COLABAWALLA & FIRDOSH P. POONIWALLA, JJ. DATE: JULY 30, 2025 P. C. 1. In the above Petition Rule was issued on 17th June 2025 and interim relief was also granted interalia staying the Notice issued under Section 148 of the Income Tax Act, 1961. Today, though the matter has come up under the caption “for directions”, we have, with the consent of parties, heard it 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 Page 1 of 4 JULY 30, 2025 Mohite TRUSHA TUSHAR MOHITE Digitally signed by TRUSHA TUSHAR MOHITE Date: 2025.08.02 13:59:24 +0530

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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. 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 immediately on re-opening. The learned counsel 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 JULY 30, 2025 Mohite

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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 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. Page 3 of 4 JULY 30, 2025 Mohite

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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 JULY 30, 2025 Mohite

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