DILEEP KUMAR LAKHOTIA S/O ANAND SWAROOP LAKHOTIA vs. INCOME TAX OFFICER

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CW/1547/2024HC RajasthanRJHC02007287202401 September 2025Author: SANJEEV PRAKASH SHARMA,MANEESH SHARMA2 pages
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What did the High Court hold?

The 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 previous judgments, specifically referencing Shree Cement Limited, Sharda Devi Chhajer, and the Bombay High Court's decision in Hexaware Technologies Ltd., which held that notices issued by JAOs instead of FAOs are invalid. The Court granted the petitioner's prayer, quashing the notice. However, in light of the pending SLP against the Hexaware Technologies Ltd. judgment, the Court granted liberty to the Revenue to revive the notice issued under Section 148 if the Apex Court were to interfere with the aforementioned judgments. 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, Dileep Kumar Lakhotia, challenged a notice dated April 12, 2023, issued under Section 148 of the Income Tax Act, 1961. The respondent is the Income Tax Officer, Ward-1(2), Alwar. 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 agreed that one of the grounds raised was covered by a previous judgment of the Court. The respondent also mentioned that a Special Leave Petition (SLP) was filed against the judgment in Hexaware Technologies Ltd. and notice had been issued. The respondent sought liberty to revive the notice if the Apex Court interfered with the relevant judgments.

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 invalid? (Question of law) Assessee's Contentions: The petitioner argued that the notice dated April 12, 2023, under Section 148 of the Income Tax Act, 1961, was issued by a JAO and not an FAO, rendering it bad and invalid. 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 was covered by a judgment of this Court. The respondent stated that an SLP had been filed against the Hexaware Technologies Ltd. judgment, and notice had been issued. The respondent requested liberty to revive the Section 148 notice 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. 1547/2024 Dileep Kumar Lakhotia S/o Anand Swaroop Lakhotia, Aged About 55 Years, R/o Dileep Kumar Lakhotia S/o Anand Swaroop Lakhotia, A-126 Ashiana Green, Bhiwadi, Alwar, Rajasthan - 301019. ----Petitioner Versus Income Tax Officer, Ward-1(2), Alwar, C R Building, Moti Doongri Road, Alwar, Rajasthan, 301001 ----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 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-1547/2024]

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 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/169

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