MANISH DOSI S/O SNEH KUMAR DOSI vs. INCOME TAX OFFICER

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CW/7936/2023HC RajasthanRJHC02038989202301 September 2025Author: K.R. SHRIRAM,MANEESH SHARMA2 pages
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What did the High Court hold?

The Tribunal quashed and set aside the notice dated April 15, 2023, issued under Section 148 of the Income Tax Act, 1961. The reasoning was based on the established precedent of the High Court in Shree Cement Limited, which relied on Sharda Devi Chhajer and Hexaware Technologies Ltd., holding that such notices issued by a JAO instead of an FAO are invalid. The Tribunal granted the liberty sought by the Revenue to revive the notice if the Apex Court were to set aside the aforementioned judgments. The operative direction was to quash the notice and dispose of the petition, keeping open all rights and contentions of the parties. Any re-assessment order passed would also stand quashed and set aside.

What were the facts?

The petitioner, Manish Dosi, challenged a notice dated April 15, 2023, issued under Section 148 of the Income Tax Act, 1961, by the Income Tax Officer, Ward 2(2), Kota. The petitioner contended that the notice was issued by a Jurisdictional Assessing Officer (JAO) and not a Faceless Assessing Officer (FAO). The respondent Revenue acknowledged that a ground raised by the petitioner was covered by a previous judgment of the High Court. The Revenue also noted that a Special Leave Petition (SLP) had been filed against the judgment in Hexaware Technologies Ltd. and notice had been issued. The Revenue sought liberty to revive the notice if the Apex Court interfered with the aforementioned judgments.

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) and not a Faceless Assessing Officer (FAO) is bad in law and invalid? Assessee's Contentions: The petitioner argued that the notice under Section 148 was invalid as it was issued by a JAO and not an FAO, relying on the High Court's judgment in Shree Cement Limited, which followed Sharda Devi Chhajer and Hexaware Technologies Ltd. Revenue's Contentions: The Revenue agreed that one of the grounds was covered by the High Court's judgment. However, it pointed out that an SLP had been filed against the Hexaware Technologies Ltd. judgment, and notice had been issued. The Revenue requested liberty to revive the Section 148 notice if the Apex Court were to interfere with the judgments 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. 7936/2023 Manish Dosi S/o Sneh Kumar Dosi, R/o 928, 1St Floor, Shanti Nagar, Durga Pura Jaipur 302018, Rajasthan. ----Petitioner Versus Income Tax Officer, Income Tax Department, Ward 2(2), Kota, Rajasthan. ----Respondent For Petitioner(s) : Mr. P.K. Kasliwal with Mr. Priyesh Kasliwal 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. Kasliwal 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-7936/2023]

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. Kasliwal 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/62

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