ASHISH BHANDARI S/O GAJENDRA MAL BHANDARI vs. ASSISTANT COMMISSIONER OF INCOME TAX

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CW/13524/2023HC RajasthanRJHC02067506202301 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 11, 2023, issued under Section 148 of the Income Tax Act, 1961. The Court agreed with the petitioner that the notice was invalid as it was issued by a Jurisdictional Assessing Officer (JAO) and not a Faceless Assessing Officer (FAO), following its own precedents in Shree Cement Limited and Sharda Devi Chhajer. The Court also noted the revenue's submission regarding the SLP filed against the Hexaware Technologies Ltd. judgment and granted the revenue liberty to revive the notice if the Supreme Court's decision altered the established legal position. The Court explicitly stated that all rights and contentions of both parties were kept open. Any reassessment order passed pursuant to the quashed notice would also stand quashed and set aside. The petition was disposed of.

What were the facts?

The petitioner, Ashish Bhandari, challenged a notice dated April 11, 2023, issued under Section 148 of the Income Tax Act, 1961. The petitioner argued that the notice was issued by a Jurisdictional Assessing Officer (JAO) and not a Faceless Assessing Officer (FAO), rendering it invalid. The respondent, Assistant Commissioner of Income Tax, Circle 1, Jaipur, conceded that one of the grounds raised by the petitioner was covered by a previous judgment of the High Court. The revenue also mentioned that a Special Leave Petition (SLP) was filed against the Hexaware Technologies Ltd. judgment, and notice had been issued by the Supreme Court. The revenue requested liberty to revive the Section 148 notice if the Supreme Court's decision altered the existing legal position.

What were the issues?

1. Whether a notice dated April 11, 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 bad in law and invalid? (Question of law, concerning the validity of reassessment notices under the faceless assessment scheme). Assessee's Contention: The notice under Section 148 is invalid because it was issued by a JAO and not an FAO, relying on the High Court's judgments in Shree Cement Limited and Sharda Devi Chhajer. Revenue's Contention: The revenue agreed that the notice was covered by the High Court's judgment. However, they pointed out that an SLP had been filed against the Hexaware Technologies Ltd. judgment, and notice had been issued by the Supreme Court. They requested liberty to revive the notice if the Supreme Court's decision altered the current legal position established in the cited cases.

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. 13524/2023 Ashish Bhandari S/o Gajendra Mal Bhandari, Aged About 41 Years, R/o Bb-9/1, Lane No.-6, Anita Colony, Bajaj Nagar, Jaipur 302015, Rajasthan India. ----Petitioner Versus Assistant Commissioner Of Income Tax, Circle 1, Jpr, New Central Revenue Building, Bhagwan Dass Road, Jaipur Rajasthan, 302005 ----Respondent For Petitioner(s) : Mr. Mahendra Gargieya with Mr. Devang Gargieya, Mr. Hemang Gargieya & Mr. Tarak Ahuja For Respondent(s) : Mr. Sandeep Pathak with Ms. Jaya 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. Mahendra 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 11th 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-13524/2023]

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. Mahendra 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 11th 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/88

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