MOHAMMAD TALIB ALI S/O ZAFRUL HASAN vs. INCOME TAX OFFICER

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CW/15581/2023HC RajasthanRJHC02079349202301 September 2025Author: K.R. SHRIRAM,MANEESH SHARMA2 pages
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What did the High Court hold?

The High Court quashed and set aside the notice dated April 15, 2023, issued under Section 148 of the Income Tax Act, 1961. The Court acknowledged that the ground raised by the petitioner was covered by its own previous decisions in Shree Cement Limited, Sharda Devi Chhajer, and Hexaware Technologies Ltd., which held such notices issued by JAOs to be invalid. However, considering the pendency of an SLP before the Apex Court concerning the Hexaware Technologies Ltd. judgment, the Court granted the petitioner's prayer for the present but provided liberty to the Revenue to revive the notice if the Apex Court's decision altered the existing legal position. The Court also stated that if any re-assessment order were passed, it would also stand quashed and set aside. All rights and contentions of the parties were kept open.

What were the facts?

The petitioner, Mohammad Talib Ali, challenged a notice dated April 15, 2023, issued under Section 148 of the Income Tax Act, 1961. The petitioner contended that the notice was issued by a Jurisdictional Assessing Officer (JAO) and not a Faceless Assessing Officer (FAO). The respondent, Income Tax Officer, Ward-1, Beawar, appeared before the High Court. The High Court noted that one of the grounds raised by the petitioner was covered by its previous judgments.

What were the issues?

1. Whether a notice dated April 15, 2023, issued under Section 148 of the Income Tax Act, 1961, by a Jurisdictional Assessing Officer (JAO) is invalid, considering the established jurisprudence on faceless assessment. Assessee's Contention: The notice is bad and not valid because it was issued by a JAO and not a Faceless Assessing Officer (FAO). The assessee relied on the High Court's judgment in Shree Cement Limited Vs. Assistant Commissioner of Income-Tax & Others, which followed Sharda Devi Chhajer Vs. The Income Tax Officer & Another and Hexaware Technologies Ltd. Vs. Assistant Commissioner of Income-tax, Circle 15(1)(2). Revenue's Contention: The revenue agreed that the ground was covered by the High Court's judgment. However, the revenue noted that a Special Leave Petition (SLP) had been filed against the Hexaware Technologies Ltd. judgment, and notice had been issued by the Apex Court. The revenue requested liberty to revive the notice if the Apex Court interfered with the aforementioned judgments.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
[2025:RJ-JP:35135-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Civil Writ Petition No. 15581/2023 Mohammad Talib Ali S/o Zafrul Hasan, Aged About 52 Years, R/o Plot No 14 Mohannagar Narsingpura Beawar. ----Petitioner Versus Income Tax Officer, Ward-1, Beawar, Court Campus, Ajmer Road, Beawar, Beawar, Rajasthan, 305901 ----Respondent For Petitioner(s) : Mr. Mahendra Gargieya with Mr. Devang Gargieya, Mr. Hemang Gargieya & Mr. Tarak Ahuja For Respondent(s) : Mr. Shantanu Sharma with Mr. Parth Vashishtha & Mr. Aditya Doda HON'BLE THE CHIEF JUSTICE MR. K.R. SHRIRAM HON'BLE MR. JUSTICE MANEESH SHARMA

Order 01/09/2025

1.

Mr. Sharma, who appears on advance copy, agrees with Mr. Gargieya that one of the grounds raised certainly is covered by a judgment of this Court.

2.

Ground referred to is that the notice dated 15th April 2023 under Section 148 of the Income Tax Act, 1961 has been issued by a Juri ictional Assessing Officer (JAO) and not Faceless Assessing Offider (FAO) and this Court in the case of Shree Cement Limited Vs. Assistant Commissioner of Income-Tax & Others1 following Sharda Devi Chhajer Vs. The Income Tax Officer & Another2 and Hexaware Technologies Ltd. Vs. Assistant Commissioner of Income-tax, Circle 15(1)(2)3, has held that such a notice will be bad and not valid. 1 DB Civil Writ Petition No.10540/2024, dated 05.08.2025 at Jaipur Bench (unreported) 2 2025 SCCOnLine Raj 3386 3 [2024] 162 taxmann.com 225 (Bombay)

[2025:RJ-JP:35135-DB] (2 of 2) [CW-15581/2023]

3.

At the same time, Mr. Sharma states that in Hexaware Technologies Ltd. (supra), Revenue has preferred a Special Leave Petition and 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.

4.

Mr. Gargieya states that in view of the above, for the present, petitioner will reserve his right to raise other grounds at an appropriate stage.

5.

Therefore, keeping open all rights and contentions of parties, we quash and set aside notice dated 15th April 2023 issued under Section 148 of the Act with liberty as prayed.

6.

Petition disposed.

7.

Consequently, all pending applications, if any, also stand disposed.

8.

In case, if any re-assessment order is passed, the same will also stand quashed and set aside. (MANEESH SHARMA),J (K.R. SHRIRAM),CJ N.GANDHI/RAJAT/118

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