RAKESH KUMAR S/O SURESH CHAND vs. INCOME TAX OFFICER

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CW/10247/2023HC RajasthanRJHC02051802202301 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 was covered by its own previous judgments in Shree Cement Limited and Sharda Devi Chhajer, which held that notices issued by JAOs instead of FAOs are invalid. The Court also noted the revenue's submission regarding the pending SLP in the Hexaware Technologies Ltd. case and the request for liberty to revive the notice. Consequently, the Court disposed of the petition, quashing the notice with liberty granted to the revenue as prayed. The Court also stated that any re-assessment order passed would also stand quashed and set aside. All rights and contentions of the parties were kept open.

What were the facts?

The petitioner, Rakesh Kumar, challenged a notice dated April 13, 2023, issued under Section 148 of the Income Tax Act, 1961, by the Income Tax Officer, Ward - (1), Bharatpur. 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. Sandeep Pathak, agreed that one of the grounds raised by the petitioner was covered by a previous judgment of the Court. The revenue also informed the Court that a Special Leave Petition (SLP) had been filed and notice issued in the case of Hexaware Technologies Ltd. (supra), which dealt with a similar issue. The revenue sought liberty to revive the notice if the Apex Court were to interfere with the existing 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? (Question of law, concerning the validity of reassessment notices issued under Section 148 of the Income Tax Act, 1961). Assessee's Contention: The notice is invalid because it was issued by a JAO and not an FAO, relying on the High Court's judgments in Shree Cement Limited and Sharda Devi Chhajer. Revenue's Contention: While agreeing that the notice is covered by the cited judgments, the revenue noted that an SLP has been filed in the Hexaware Technologies Ltd. case. The revenue requested liberty to revive the notice if the Apex Court were to overturn the decisions in Shree Cement Limited, Sharda Devi Chhajer, or Hexaware Technologies Ltd.

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. 10247/2023 Rakesh Kumar S/o Suresh Chand, Aged About 32 Years, R/o - 2 B14 Samridhi Residency, Baran Road, Borkheda, Kota, Rajasthan Pin Code- 324001 ----Petitioner Versus Income Tax Officer, Ito Ward - (1), Goverdhan Gate, Near Head Post Office, Bharatpur, Rajasthan, 321001 ----Respondent For Petitioner(s) : Mr. Sanjay Jhanwar, Senior Advocate assisted by Mr. Rajat Sharma, Mr. Shubhendra Singh & Mr. Saksham Pandey For Respondent(s) : Mr. Sandeep Pathak with Ms. Jaya P. 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. 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 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-10247/2023]

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. 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 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/83

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