BHADU RAM GUJAR S/O SH. GORDHAN LAL GURJAR vs. INCOME TAX OFFICER

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CW/17218/2025HC RajasthanRJHC02097685202511 November 2025Author: SANJEEV PRAKASH SHARMA,BALJINDER SINGH SANDHU4 pages
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What did the High Court hold?

The Tribunal held that notices issued under Section 148 of the Income Tax Act, 1961, by a Jurisdictional Assessing Officer (JAO) are not valid when the faceless assessment regime, mandating algorithm-based random allocation, is in place. The Court referred to its previous decision in Sharda Devi Chhajer & Anr. Vs The Income Tax Officer & Anr., which held that the mandate of Section 151A of the Act must be strictly followed. The JAO lacks the jurisdiction to issue such notices, as it weakens Section 151A and undermines the legislative intent of transparency and impartiality through technology. The Court reiterated that adherence to the algorithm-based random assessing system is necessary for assessments and reassessments under Sections 147, 148, and 148A, in light of the sanction under Section 151A. Consequently, the impugned notices were quashed and set aside. The respondents were granted liberty to issue fresh notices in compliance with the CBDT Notification dated 29.03.2022, keeping the Facilitation Centre as the assessing officer. The time spent during the litigation was excluded for computing the limitation for fresh notices. The judgment also cited a previous order by one of the judges in Jasjit Singh vs. Union of India & Ors., which held that circulars or instructions cannot override statutory provisions and that authorities cannot usurp legal provisions for their convenience.

What were the facts?

The petitioner, Bhadu Ram Gujar, filed a writ petition before the Rajasthan High Court, Jaipur Bench, challenging a notice dated 12.06.2025 issued by the Jurisdictional Assessing Officer (JAO). The respondent was the Income Tax Officer, Ward Tonk. The petitioner argued that the notice was issued without following the prescribed procedure for faceless assessment and random allocation of cases. The respondent accepted notice. Both parties agreed that the issue had been adjudicated by a Coordinate Bench of the same High Court in a previous case, Sharda Devi Chhajer & Anr. Vs The Income Tax Officer & Anr., decided on 19.03.2025, which dealt with similar challenges to notices issued under Section 148 of the Income Tax Act, 1961.

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, considering the scheme of automated allocation based on algorithms and random assignment of assessing officers as envisaged by the faceless assessment regime and Section 151A of the Act? Assessee's Contentions: The petitioner contended that the notice issued by the JAO was invalid as it bypassed the mandatory requirement of automated allocation and random assignment of cases, which is central to the faceless assessment scheme. Reliance was placed on the principles laid down in the judgment of Sharda Devi Chhajer & Anr. Vs The Income Tax Officer & Anr. Revenue's Contentions: The revenue did not present separate arguments but agreed that the issue was covered by the aforementioned judgment. The judgment notes that the revenue's counsel suggested a distinction or a different view, but the court found no occasion to do so.

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
[2025:RJ-JP:45197-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Civil Writ Petition No. 17218/2025 Bhadu Ram Gujar, Aged About 58 Years, S/o Sh. Gordhan Lal Gurjar, R/o A-1 A-1, Krishi Upaj Mandi Malpura 304502, Rajasthan. ----Petitioner Versus Income Tax Officer, Ward Tonk, Income Tax Department, Mahadevwali, Civil Line, Tonk, Rajasthan 304001 ----Respondent For Petitioner(s) : Mr. Jaideep Malik For Respondent(s) : Mr. Sandeep Pathak with Mr. Palash Gupta HON'BLE THE ACTING CHIEF JUSTICE MR. SANJEEV PRAKASH SHARMA HON'BLE MR. JUSTICE BALJINDER SINGH SANDHU

Order 11/11/2025

1.

Issue notice to the respondent.

2.

Mr. Sandeep Pathak, learned counsel, accepts notice on behalf of the respondent.

3.

Both the learned counsel clearly states that the issue raised in the present writ petition stands finally adjudicated by a Co-ordiante Bench of this Court in D.B. Civil Writ Petition No.11787/2024: Sharda Devi Chhajer & Anr. Vs The Income Tax Officer & Anr. and other connected writ petition 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

[2025:RJ-JP:45197-DB] (2 of 4) [CW-17218/2025] 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.

19.

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 control the same would go against the legislative purpose.

20.

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.

21.

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

[2025:RJ-JP:45197-DB] (3 of 4) [CW-17218/2025] 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.

21.

2 All pending applications stand disposed of.”

4.

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 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.

17.

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.

18.

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.

19.

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.

20.

All the writ petitions are allowed. The interim order passed by the Court shall stand merged with the present order.”

[2025:RJ-JP:45197-DB] (4 of 4) [CW-17218/2025]

5.

Keeping in view of the above, the present writ petition is allowed in the aforesaid terms. The observations and order passed above shall apply mutatis mutandis to the present case.

6.

The notice dated 12.06.2025 issued by the Juri ictional Assessing Officer(JAO) and all the consequential orders passed there on the said basis stands quashed and set aside.

7.

All pending applications also stand disposed of. (BALJINDER SINGH SANDHU),J (SANJEEV PRAKASH SHARMA),ACTING CJ DIKSHA MISHRA /14

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