NIRMAL KUMAR BARDIYA S/O SAGARMAL BARDIYA, vs. PRINCIPAL COMMISSIONER OF INCOME TAX
What did the High Court hold?
The High Court noted that the issue raised had been finally adjudicated by a co-ordinate bench in D.B. Civil Writ Petition No.11787/2024. That bench had held that notices issued under Section 148 of the Act by a JAO were invalid as they did not comply with the broader scheme of automated allocation based on algorithms and random assignment of assessing officers, as mandated by Part 2(i)(a) of the Scheme and Section 151A of the Act. The Court observed that the mandate of Section 151A had to be strictly followed, and JAOs lacked the jurisdiction to issue such notices, which would weaken Section 151A. Consequently, the impugned notices were quashed and set aside, with liberty to issue fresh notices in compliance with CBDT Notification dated 29.03.2022, keeping the FAO as the assessing officer. The time spent during litigation was to be excluded for limitation. However, in the present case, the final order was passed after the notice was issued by the JAO. The Court found it inappropriate to pass orders that would make the appeal redundant. Therefore, the petitioner was directed to file an application before the Commissioner of Income Tax (Appeal), who was directed to pass appropriate orders within 15 days, taking into consideration the judgment quashing proceedings based on notices issued by the JAO.
What were the facts?
The petitioner, Nirmal Kumar Bardiya, filed a writ petition challenging notices issued by the Jurisdictional Assessing Officer (JAO) under Section 148 of the Income Tax Act, 1961. The petitioner argued that these notices were illegally issued by the JAO instead of a Faceless Assessing Officer, contrary to the faceless regime introduced. The respondents, represented by the Principal Commissioner and other income tax authorities, accepted notice. Both parties acknowledged that the issue raised in the writ petition had been adjudicated by a co-ordinate bench of the same High Court in D.B. Civil Writ Petition No.11787/2024: Sharda Devi Chhajer & Anr. Vs The Income Tax Officer & Anr., decided on March 19, 2025.
What were the issues?
1. Whether notices issued under Section 148 of the Income Tax Act, 1961, by a Jurisdictional Assessing Officer (JAO) are valid, or if they should be issued by a Faceless Assessing Officer as per the faceless regime and relevant CBDT notifications and Section 151A of the Act. Assessee's Contention: The notices were illegally issued by the JAO instead of a Faceless Assessing Officer. Revenue's Contention: Not explicitly recorded in the judgment, but implicitly, the revenue would likely defend the validity of notices issued by the JAO or argue for the applicability of the faceless regime in a manner that validates their actions. However, the judgment notes that both parties stated the issue was finally adjudicated by a co-ordinate bench.
Which sections of the Income-tax Act were involved?
Section 148,Section 151A,Section 147,Section 148A,Section 119,Section 120,Section 144B
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
Order 28/11/2025
Issue notice to respondents.
Mr. Siddharth Bapna, learned counsel, accepts notice on behalf of the respondents.
Both the learned counsel clearly state that the issue raised in the present writ petition stands finally adjudicated by a Co-ordinate Bench of this Court in D.B. Civil Writ Petition No.11787/2024: Sharda Devi Chhajer & Anr. Vs The Income Tax Officer & Anr.
[2025:RJ-JP:48423-DB] (2 of 5) [CW-17785/2025] and other connected writ petitions decided on 19.03.2025, wherein, the Co-ordinate Bench has held as under:
“18. This Court further observes that any juri ictional error in the notices has to be cured and thus, the notices which have been issued for assessment and reassessment and which are the impugned notices under Section 148 of the Act of 1961, do not withstand the broader scheme of law, which requires automated allocation based on algorithm and random assignment of the assessing officer. Part 2(i)(a) of the Scheme clear demarcates as to how the assessment and reassessment has to take place.
This Court is conscious of the fact that any reform or change for betterment is always resisted by the persons in control, particularly those who do not visualize the pragmatic and progressive paths which require vision and wi om. The legislature in its own vision and wi om, for enhancing the efficiency of the taxation system by making it more transparent and impartial, decided to have infused technology in the shape of an algorithm for randomised allocations of cases, by using suitable technological tools, including artificial intelligence and machine learning, with a view to optimise the use of resources. The common tendency to cling to control and old methods has to be dealt with firmly and ways & means including loopholes to fall back upon the old regime of control is an imminent danger which has to be thwarted off. The legislative intention, legislative vision and legislative wi om has to be given full meaning in terms of technology and progressiveness, and thus, once an effective and strong step has been taken towards faceless regime, then maintaining the strings of local control to the prejudice of a common man would not only undermine the legislative wi om but the gains in terms of such a progressive and pragmatic step would stand to reduce. Once the gear of progress has been applied in a democratic set up, the same has to be strongly supported and sustained. The CBDT Circular read with Section 151A of the Act of 1961 has to be given full meaning and any ways & means to defeat the technology or to manually try to
[2025:RJ-JP:48423-DB] (3 of 5) [CW-17785/2025] control the same would go against the legislative purpose.
Thus, this Court holds that the mandate of Section 151A of the Act of 1961 has to be strictly followed as there cannot be a way out of doing the same. This Court also holds that the JAO shall not have the juri iction to issue notices under Section 148 of the Act of 1961, as it would not only render Section 151A weak, but may also lead to its diminishing activation. For the purpose of assessment and reassessment under Sections 147, 148 & 148A and in light of the sanction under Section 151A, adherence has to be made to algorithm based random assessing system, and therefore, the impugned notices deserve to be quashed.
Consequently, the present writ petitions are allowed. Accordingly, the impugned Notices are quashed and set aside, as far as the juri iction of JAOs for the purpose of Sections 148 & 148A of the Act of 1961 to issue the same is concerned. The question raised herein stands answered in the terms indicated above, with liberty to the respondents to issue fresh notices in compliance of the CBDT Notification dated 29.03.2022, by keeping the FAO as assessing officer. 21.1 However, the time spent during the pendency of the present litigation in the Court, shall be excluded for the purpose of computing limitation for issuance of fresh notices, in case, need arises.
2 All pending applications stand disposed of.”
One of us (Hon’ble Mr. Justice Sanjeev Prakash Sharma) while sitting at Punjab and Haryana High Court passed an order in CWP No.21509/2023 titled as Jasjit Singh vs. Union of India & Ors., decided on 29.07.2024 wherein it was held as under:- “16. We are in agreement with the view taken by the Coordinate Bench and hold that such circular or instructions by the Board could not have been issued to override statutory provisions or to make them otiose or obsolete. Legislative
enactments
having
financial implications are required to be followed strictly and mandatorily. By exercising the powers
[2025:RJ-JP:48423-DB] (4 of 5) [CW-17785/2025] contained in Sections 119 and 120 of the Act, 1961 as well as Section 144B (7 & 8), the authorities cannot be allowed to usurp the legal provisions to their own satisfaction and convenience causing hardship to the assessees. It also leaves confusion in the minds of the taxpayers. In the opinion of this Court, instructions and circulars can be issued only for the purpose of supplementing the statutory provisions and for their implementation.
In view of the aforesaid discussion, there is no occasion to distinguish or take a different view as suggested by the learned counsel for the revenue from what has already been held by the Coordinate Bench.
Keeping in view the law laid down by the Co- ordinate Bench(supra) notices issued by the JAO under Section 148 of the Act, 1961 and the proceedings
initiated
thereafter
without conducting the faceless assessment as envisaged under Section 144B of the Act, 1961, have been found to be contrary to the provisions of the Act, 1961 and accordingly notices dated 28.02.2023, 16.03.2023, 20.03.2024 and 30.03.2023 and order dated 30.03.2023, are set aside for want of juri iction.
The respondents-revenue would be, however at liberty to follow the procedure as laid down under the Act, 1961 and proceed accordingly, if so advised.
All the writ petitions are allowed. The interim order passed by the Court shall stand merged with the present order.”
Learned counsel for the petitioner submits that the notices were illegally issued by the Juri ictional Assessing Officer instead of Faceless Assessing Officer.
Admittedly, in this case, the final order was passed after the notice was issued by the Juri ictional Assessing Officer. Although the faceless regime has been introduced. In view of the judgments passed in the cases of Jasjit Singh (supra) as well as Sharda Devi Chhajer (supra), the proceedings could not have been initiated by the Juri ictional Assessing Officer nor the faceless regime could
[2025:RJ-JP:48423-DB] (5 of 5) [CW-17785/2025] have later on passed orders. However, it is noticed that the appeal has been preferred against the final order and, therefore, it would not be appropriate for this Court to pass orders resulting in making
the appeal redundant.
In these circumstances, we direct the petitioner to file an application before the concerned Commissioner of Income Tax (Appeal) who will take into consideration and pass appropriate orders
accordingly within a period of 15 days following the judgment already rendered by this Court relating to quashing of the proceedings based on the notice issued by the Juri ictional Assessing Officer.
The present Civil Writ Petition stands disposed of.
All pending applications also stand disposed of. (MANEESH SHARMA),J (SANJEEV PRAKASH SHARMA),ACTING CJ AMIT/8
More judgments on Section 148
- ACIT Central Bilaspur, Bilaspur vs Arun Kumar Agrawal, SaktiITSSA 26/RPR/2025[2018-19]Status: Disposed21 Oct 2026AY 2018-19
- Vinod Agrawal, Kawardha vs Assisstant Commissioner of Income Tax…ITA 666/RPR/2026[2019-20]Status: Heard21 Oct 2026AY 2019-20
- Sar Business Tradelink Private Limited… vs Income Tax Officer, Ward - 1(2), RaipurITA 599/RPR/2026[2014-15]Status: Heard21 Oct 2026AY 2014-15
- Neo Incorporation, Rajkot vs DCIT Circle- 1(2), RajkotITA 471/RJT/2026[2012-2013]Status: Disposed21 Oct 2026AY 2012-2013
- Adj Agri International LLP, Rajkot vs The Income Tax Officer, Ward-1(1)(1), RajkotITA 1198/RJT/2026[2018-19]Status: Disposed21 Oct 2026AY 2018-19
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