PANKAJ TALWAR S/O JUGAL KISHORE TALWAR vs. DEPUTY COMMISSIONER OF INCOME TAX

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CW/9005/2023HC RajasthanRJHC02044044202301 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 12, 2023, issued under Section 148 of the Income Tax Act, 1961. The Court followed its previous decisions in 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 revenue liberty 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 reassessment order passed pursuant to the quashed notice would also stand quashed and set aside. All rights and contentions of the parties were kept open.

What were the facts?

The petitioner, Pankaj Talwar, challenged a notice dated April 12, 2023, issued under Section 148 of the Income Tax Act, 1961, by the Deputy Commissioner of Income Tax, Circle-2, Kota. The petitioner argued that the notice was issued by a Jurisdictional Assessing Officer (JAO) and not a Faceless Assessing Officer (FAO). The respondent revenue acknowledged that one of the grounds 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 the Hexaware Technologies Ltd. case, and notice had been issued by the Apex Court.

What were the issues?

1. Whether a notice dated April 12, 2023, issued under Section 148 of the Income Tax Act, 1961, by a Jurisdictional Assessing Officer (JAO) is bad in law and invalid? (Question of law) Assessee's Contentions: The notice under Section 148 was issued by a JAO and not a Faceless Assessing Officer (FAO), making it invalid. This contention is supported by 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 a High Court judgment. However, it was noted that an 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 were to interfere with the aforementioned judgments.

Which sections of the Income-tax Act were involved?

Section 148

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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. 9005/2023 Pankaj Talwar S/o Jugal Kishore Talwar, Aged About 45 Years, R/o 756, A.r.k. Puram, Kota (Rajasthan) 324010 ----Petitioner Versus Deputy Commissioner Of Income Tax, Dcit/acit, Circle -2, Kota, Central Revenue Building, Rawat Bhata Road, Kota, Rajasthan. 324009 ----Respondent For Petitioner(s) : Mr. Sanjay Jhanwar, Senior Advocate assisted by Mr. Rajat Sharma, Mr. Shubhendra Singh & Mr. Saksham Pandey 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. 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 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-9005/2023]

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. 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 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/80

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