AAKASH GUPTA S/O UMA KANT GUPTA vs. PRINCIPAL COMMISSIONER OF INCOME TAX-I

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CW/8441/2023HC RajasthanRJHC02041318202301 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 13, 2023, issued under Section 148 of the Income Tax Act, 1961. The court acknowledged that the ground raised by the petitioner regarding the notice being issued by a JAO instead of an FAO was covered by its own previous judgments, specifically Shree Cement Limited, which relied on Sharda Devi Chhajer and Hexaware Technologies Ltd. The court accepted the Revenue's request for liberty to revive the notice in the event the Apex Court's decision in the SLP filed against Hexaware Technologies Ltd. (or related cases) altered the existing legal position. The court also stated that any reassessment order passed pursuant to the quashed notice would also stand quashed and set aside. The petition was disposed of, keeping open all rights and contentions of the parties.

What were the facts?

The petitioner, Aakash Gupta, challenged a notice dated April 13, 2023, issued under Section 148 of the Income Tax Act, 1961. The challenge was based on the assertion that the notice was issued by a Jurisdictional Assessing Officer (JAO) and not a Faceless Assessing Officer (FAO). The respondents are the Principal Commissioner of Income Tax-I, Rajasthan, Jaipur, and the Income Tax Officer, Ward 1(3), Jaipur. The matter came before the High Court of Judicature for Rajasthan, Bench at Jaipur. The court noted that one of the grounds raised by the petitioner was covered by a previous judgment of the same court.

What were the issues?

1. Whether a notice dated April 13, 2023, issued under Section 148 of the Income Tax Act, 1961, by a Jurisdictional Assessing Officer (JAO) instead of a Faceless Assessing Officer (FAO) is invalid? (Question of law) Assessee's Contention: The assessee argued that the notice under Section 148 was bad and not valid because it was issued by a JAO and not an 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 one of the grounds raised was covered by a judgment of the court. However, the Revenue stated that a Special Leave Petition (SLP) had been preferred 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 judgments in Hexaware Technologies Ltd., Sharda Devi Chhajer, or Shree Cement Limited.

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. 8441/2023 Aakash Gupta S/o Uma Kant Gupta, R/o 55, Shanti Nagar, Ajmer Road, Jaipur ----Petitioner Versus 1. Principal Commissioner Of Income Tax-I, Rajasthan, Jaipur, Income Tax Department, Ncrb, Statue Circle, Jaipur. 2. Income Tax Officer, Income Tax Department, Ward 1(3), New Central Revenue Building, Bhagwan Das Road, Jaipur-302005 ----Respondents For Petitioner(s) : Mr. P.K. Kasliwal with Mr. Priyesh Kasliwal For Respondent(s) : Mr. Sandeep Pathak with Ms. Jaya P. Pathak & Mr. Palash Gupta HON'BLE THE CHIEF JUSTICE MR. K.R. SHRIRAM HON'BLE MR. JUSTICE MANEESH SHARMA

Order 01/09/2025

1.

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

2.

Ground referred to is that the notice dated 13th 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-8441/2023]

3.

At the same time, Mr. Pathak 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. Kasliwal 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 13th 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/76

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