MEGHA TAILOR L/R AND W/O OF LATE HEMENDRA TAILOR vs. INCOME TAX OFFICER

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CW/19045/2023HC RajasthanRJHC02096040202301 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 judgment in Shree Cement Limited, which followed Sharda Devi Chhajer and cited Hexaware Technologies Ltd. The Court granted the petitioner's prayer for quashing the notice. However, in light of the pending SLP against Hexaware Technologies Ltd. and the potential for the Apex Court to alter the legal position, the Court granted liberty to the Revenue to revive the notice issued under Section 148 if the Apex Court were to interfere with the judgments in Hexaware Technologies Ltd., Sharda Devi Chhajer, or Shree Cement Limited. The Court also stated that any re-assessment order passed pursuant to the quashed notice would also stand quashed and set aside. All rights and contentions of the parties were kept open.

What were the facts?

The petitioner, Megha Tailor, challenged a notice dated April 13, 2023, issued under Section 148 of the Income Tax Act, 1961, by the Income Tax Officer, Ward -1, Beawer. The petitioner contended that the notice was issued by a Jurisdictional Assessing Officer (JAO) and not a Faceless Assessing Officer (FAO). The respondent revenue, represented by Mr. Sharma, agreed that one of the grounds raised was covered by a previous judgment of the Court. The revenue also mentioned that a Special Leave Petition (SLP) had been filed against the judgment in Hexaware Technologies Ltd. and notice had been issued. The revenue sought liberty to revive the Section 148 notice if the Apex Court were to interfere with the relevant judgments.

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 bad in law and invalid? Assessee's Contentions: The petitioner argued that the notice under Section 148 was issued by a JAO and not an FAO, making it invalid. The petitioner relied on the High Court's judgments in Shree Cement Limited Vs. Assistant Commissioner of Income-Tax & Others and Sharda Devi Chhajer Vs. The Income Tax Officer & Another. Revenue's Contentions: The revenue conceded that the ground raised by the petitioner was covered by the High Court's judgment in Shree Cement Limited. However, the revenue noted that an SLP had been filed against the judgment in Hexaware Technologies Ltd. (which followed Sharda Devi Chhajer and was cited in Shree Cement Limited) and notice had been issued. The revenue requested liberty to revive the Section 148 notice if the Apex Court were to overturn 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. 19045/2023 Megha Tailor L/r And W/o Of Late Hemendra Tailor, Aged About 39 Years, R/o 74, Akshat Brahamanand Marg, Cs Lodha Nagar, Beawar, 305901, Rajasthan, India. ----Petitioner Versus Income Tax Officer, Ward -1, Beawer, Court Campus, Ajmer Road, 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 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-19045/2023]

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 her 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/161

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