AMIT GUPTA S/O SURENDRA GUPTA vs. DEPUTY COMMISSIONER OF INCOME TAX

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CW/10325/2023HC RajasthanRJHC02052308202301 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 12, 2023, issued under Section 148 of the Income Tax Act, 1961. The Court acknowledged that one of the grounds raised by the petitioner was covered by its own judgment in Shree Cement Limited, which relied on Sharda Devi Chhajer and Hexaware Technologies Ltd., holding such notices issued by a JAO to be invalid. While the Revenue conceded on this point, it sought liberty to revive the notice if the Apex Court were to overturn the precedents. The Court granted this liberty. The operative direction was to quash the notice with liberty to the Revenue to revive it under specific circumstances. The Court also stated that any reassessment order passed would also stand quashed and set aside. The Court kept open all rights and contentions of the parties.

What were the facts?

The petitioner, Amit Gupta, challenged a notice dated April 12, 2023, issued under Section 148 of the Income Tax Act, 1961. The respondent is the Deputy Commissioner of Income Tax, Circle-2, Kota. The petitioner contended that the notice was issued by a Jurisdictional Assessing Officer (JAO) and not a Faceless Assessing Officer (FAO). The respondent's counsel conceded that one of the grounds raised by the petitioner was covered by a previous judgment of the Court. The respondent also mentioned that a Special Leave Petition (SLP) was filed against the Hexaware Technologies Ltd. judgment, and notice had been issued. The respondent sought liberty to revive the notice if the Apex Court were to interfere with the aforementioned judgments.

What were the issues?

1. Whether a notice dated April 12, 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 turning on Section 148 of the Income Tax Act, 1961). Assessee's Contention: The notice is bad and not valid as it was issued by a JAO and not an FAO, relying on the judgment of this Court 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 ground was covered by a previous judgment. However, it stated that an SLP was filed against the Hexaware Technologies Ltd. judgment, and notice was issued. The Revenue requested liberty to revive the notice under Section 148 if the Apex Court were to interfere 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. 10325/2023 Amit Gupta S/o Surendra Gupta, Aged About 45 Years, R/o Plot No. 7-D-11, Mahaveer Nagar-3, Kota, Rajasthan 324005 ----Petitioner Versus Deputy Commissioner Of Income Tax, Dcit/acit Circle-2, Kota, Central Revenue Building, Rawat Bhata Road, Kota, Rajasthan 324009 ----Respondent For Petitioner(s) : Mr. Sanjay Jhanwar, Senior Advocate assisted by Mr. Rajat Sharma, Mr. Shubhendra Singh & Mr. Saksham Pandey 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. Jhanwar that one of the grounds raised certainly is covered by a judgment of this Court.

2.

Ground referred to is that the notice dated 12th 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-10325/2023]

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. Jhanwar 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 12th 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/85

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