PAWAN MANTRI S/O SHRI RAM PRASAD MANTRI vs. INCOME TAX OFFICER, ITO

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CW/7878/2023HC RajasthanRJHC02038091202301 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 19, 2023, issued under Section 148 of the Income Tax Act, 1961. The Court agreed with the petitioner's contention that such a notice issued by a Jurisdictional Assessing Officer (JAO) instead of a Faceless Assessing Officer (FAO) is bad in law, following its own precedents in Shree Cement Limited and Sharda Devi Chhajer, and the Bombay High Court's decision in Hexaware Technologies Ltd. The Court granted liberty to the Revenue to revive the notice if the Apex Court were to alter the legal position established by these judgments. 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, Pawan Mantri, challenged a notice dated April 19, 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), rendering it invalid. The respondent, Income Tax Officer, Ward-2(1), Kota, acknowledged that one of the grounds raised by the petitioner was covered by previous judgments of the High Court. The respondent also mentioned that a Special Leave Petition (SLP) was filed by the Revenue in a related case (Hexaware Technologies Ltd.) and notice had been issued by the Supreme Court. The respondent sought liberty to revive the notice if the Apex Court's decision altered the existing legal position.

What were the issues?

1. Whether a notice 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? (Mixed question of law and fact, concerning Section 148 of the Income Tax Act, 1961). Assessee's Contentions: The petitioner argued that the notice dated April 19, 2023, under Section 148 of the Income Tax Act, 1961, was issued by a JAO and not an FAO, and therefore, it is bad and not valid. The petitioner relied on the judgments of this Court in Shree Cement Limited Vs. Assistant Commissioner of Income-Tax & Others and Sharda Devi Chhajer Vs. The Income Tax Officer & Another, as well as the Bombay High Court's decision in Hexaware Technologies Ltd. Vs. Assistant Commissioner of Income-tax, Circle 15(1)(2). Revenue's Contentions: The respondent agreed that one of the grounds raised by the petitioner was covered by a judgment of this Court. The respondent stated that in the case of Hexaware Technologies Ltd., the Revenue had preferred an SLP and notice had been issued. The respondent requested liberty 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.

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. 7878/2023 Pawan Mantri S/o Shri Ram Prasad Mantri, Aged About 38 Years, R/o House No. 164 A Vishveshraiya Nagar, Near Tilak Public School, Gopalpura Bypass, Jaipur 302018 ----Petitioner Versus Income Tax Officer, Ito, Ward-2(1), Kota, Dainik Navjyoti, 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 19th 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-7878/2023]

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 19th 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/54

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