KRISHNA LAL MAHAJAN S/O JAI KISHAN MAHAJAN vs. DEPUTY COMMISSIONER/ASSISTANT COMMISSIONER OF INCOME TAX

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CW/13828/2023HC RajasthanRJHC02068855202301 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 20, 2023, issued under Section 148 of the Income Tax Act, 1961. The Court agreed with the petitioner that the notice was invalid because it was issued by a Jurisdictional Assessing Officer (JAO) and not a Faceless Assessing Officer (FAO), citing its own judgment in Shree Cement Limited, which relied on Sharda Devi Chhajer and Hexaware Technologies Ltd. However, the Court granted liberty to the Revenue to revive the notice if the Apex Court were to interfere with the judgments in Hexaware Technologies Ltd., Sharda Devi Chhajer, or Shree Cement Limited. The Court also stated that any re-assessment order passed pursuant to the impugned notice would also stand quashed and set aside. All rights and contentions of the parties were kept open.

What were the facts?

The petitioner, Krishna Lal Mahajan, challenged a notice dated April 20, 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). The respondent, Deputy Commissioner/Assistant Commissioner of Income Tax, Circle-2, Ajmer, acknowledged that one of the grounds raised by the petitioner was covered by a previous judgment of the High Court. The respondent also mentioned that a Special Leave Petition (SLP) was filed against the Hexaware Technologies Ltd. judgment, and notice had been issued. The parties agreed to a conditional disposal of the writ petition.

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 Contention: The notice dated April 20, 2023, under Section 148 is bad and not valid as it was issued by a JAO and not an FAO. This contention is supported by the High Court's judgment in Shree Cement Limited Vs. Assistant Commissioner of Income-Tax & Others, which followed Sharda Devi Chhajer Vs. The Income Tax Officer & Another and Hexaware Technologies Ltd. Vs. Assistant Commissioner of Income-tax, Circle 15(1)(2). Revenue's Contention: The respondent agreed that the ground is covered by the High Court's judgment. However, they noted that an SLP has been filed against the Hexaware Technologies Ltd. judgment, and notice has been issued. They requested liberty to revive the notice if the Apex Court interferes with 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. 13828/2023 Krishna Lal Mahajan S/o Jai Kishan Mahajan, Aged About 55 Years, R/o C/o Shree Cement Limited, Riico Industrial Area, Khushkhera, Bhiwadi 301707, Dist. Alwar, Rajasthan (India) ----Petitioner Versus Deputy Commissioner/assistant Commissioner Of Income Tax, Circle-2, Ajmer, Cr Building, Opp Session Court, Jaipur Road, Ajmer, Rajasthan- 305001 ----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 20th 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-13828/2023]

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 20th 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/104

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