SHAILENDRA KUMAR PIPARA S/O GANPAT SINGH PIPARA vs. INCOME TAX OFFICER

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CW/13542/2023HC RajasthanRJHC02068872202301 September 2025Author: SANJEEV PRAKASH SHARMA,MANEESH SHARMA2 pages
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What did the High Court hold?

The High Court quashed and set aside the notice dated April 15, 2023, issued under Section 148 of the Income Tax Act, 1961. The Court acknowledged that the notice was issued by a Jurisdictional Assessing Officer (JAO) and not a Faceless Assessing Officer (FAO), and that this issue was covered by the High Court's own previous judgments in Shree Cement Limited and Sharda Devi Chhajer, which followed the principle laid down in Hexaware Technologies Ltd. The Court granted the petitioner's prayer to quash the notice. Crucially, the Court also 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 kept open all rights and contentions of the parties for future proceedings. Any re-assessment order passed subsequently would also stand quashed and set aside.

What were the facts?

The petitioner, Shailendra Kumar Pipara, challenged a notice dated April 15, 2023, issued under Section 148 of the Income Tax Act, 1961, by the Income Tax Officer, Ward-1, Beawar (the respondent). 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 High Court. The respondent also noted that a Special Leave Petition (SLP) had been filed against the Hexaware Technologies Ltd. judgment, and notice had been issued by the Apex Court. The respondent sought liberty to revive the Section 148 notice if the Apex Court's decision altered the existing legal position.

What were the issues?

1. Whether a notice dated April 15, 2023, issued under Section 148 of the Income Tax Act, 1961, by a Jurisdictional Assessing Officer (JAO) is invalid, considering the High Court's previous judgments? (Question of law) Assessee's Contentions: The petitioner argued that the notice under Section 148 was issued by a JAO and not a FAO, rendering it bad and invalid. This contention was supported by the High Court's decisions in Shree Cement Limited and Sharda Devi Chhajer. Revenue's Contentions: The respondent conceded that one ground 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 Apex Court. The revenue requested liberty to revive the Section 148 notice if the Apex Court's decision altered the prevailing law.

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. 13542/2023 Shailendra Kumar Pipara S/o Ganpat Singh Pipara, Aged About 41 Years, R/o 164, Rayli Gali, Pipliya Bajar, Beawar 305901 ----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. 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. 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 15th 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-13542/2023]

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. 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 15th 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/93

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