RAKESH MANIHAR S/O OM PRAKASH MANIHAR vs. INCOME TAX OFFICER

PDF · subscribers
CW/15633/2023HC RajasthanRJHC02079317202301 September 2025Author: K.R. SHRIRAM,MANEESH SHARMA2 pages
AI SummaryPartly Allowed

What did the High Court hold?

The High Court, acknowledging the revenue's concession and the existing High Court judgments (Shree Cement Limited, Sharda Devi Chhajer) that held notices issued by JAOs instead of FAOs to be invalid, quashed and set aside the notice dated April 15, 2023, issued under Section 148 of the Income Tax Act. The Court granted the liberty sought by the revenue to revive the notice if the Apex Court's decision in the SLP filed against Hexaware Technologies Ltd. (and related cases) alters the current legal position. The Court also stated that any re-assessment order passed pursuant to the quashed notice would also stand quashed and set aside. The petition was disposed of, keeping open all rights and contentions of the parties.

What were the facts?

The petitioner, Rakesh Manihar, challenged a notice dated April 15, 2023, issued under Section 148 of the Income Tax Act, 1961. The respondent is the Income Tax Officer, Ward-1, Beawar. 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 revenue, represented by Mr. Sharma, conceded that one of the grounds raised by the petitioner was covered by a previous judgment of the High Court. However, the revenue 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 revenue requested 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) instead of a Faceless Assessing Officer (FAO) is bad in law and invalid? (Question of law) Assessee's Contentions: - The notice under Section 148 is invalid because it was issued by a JAO and not an FAO. This contention is supported by the High Court's judgments in Shree Cement Limited and Sharda Devi Chhajer, and the Bombay High Court's decision in Hexaware Technologies Ltd. Revenue's Contentions: - The revenue agrees that the ground raised by the petitioner is covered by the High Court's judgment. However, it points out that an SLP has been filed against the Hexaware Technologies Ltd. judgment, and notice has been issued by the Apex Court. The revenue seeks liberty to revive the Section 148 notice if the Apex Court's decision impacts 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. 15633/2023 Rakesh Manihar S/o Om Prakash Manihar, Aged About 39 Years, R/o Manihar Bhawan, Heda Gali, Shahpura, Mohalla Beawar, Ajmer, 305901, Rajasthan, India. ----Petitioner Versus Income Tax Officer, Ward-1, Beawar, Court Campus, Ajmer Road, Beawar, 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 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-15633/2023]

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 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/133

More judgments on Section 148

All 35,022 judgments and leading authorities on Section 148 →

Recent GST High Court judgments

Search GST case law →