RAM VILASH DADHICH S/O RAM JEEVAN DADHICH vs. INCOME TAX OFFICER

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CW/16965/2024HC RajasthanRJHC02093542202401 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 21, 2023, issued under Section 148 of the Income Tax Act, 1961. The reasoning was based on the established precedent of this Court in Shree Cement Limited, which followed Sharda Devi Chhajer and Hexaware Technologies Ltd., holding that notices issued by a JAO instead of an FAO are invalid. The Court granted the petitioner's prayer for the present. However, acknowledging the pending SLP in the Apex Court regarding Hexaware Technologies Ltd., the Court granted liberty to the Revenue to revive the notice issued under Section 148 if the Apex Court's decision alters the position of law established in the cited cases. The Court also stated that any re-assessment order passed would stand quashed and set aside. All other rights and contentions of the parties were kept open.

What were the facts?

The petitioner, Ram Vilash Dadhich, challenged a notice dated April 21, 2023, issued under Section 148 of the Income Tax Act, 1961. The challenge was based on the assertion that the notice was issued by a Jurisdictional Assessing Officer (JAO) and not a Faceless Assessing Officer (FAO). The respondent, Income Tax Officer, Ward 4(2), Jaipur, appeared on advance copy. The case was heard by the High Court of Judicature for Rajasthan, Bench at Jaipur.

What were the issues?

1. Whether a notice dated April 21, 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 valid? (Question of law) Assessee's Contention: The notice is bad and invalid because it was issued by a JAO, not an FAO. This is supported by this 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: While agreeing that the notice is covered by the cited judgments, the Revenue noted that a Special Leave Petition (SLP) has been filed in the Apex Court concerning the Hexaware Technologies Ltd. case, and notice has been issued. The Revenue requested liberty to revive the Section 148 notice if the Apex Court interferes 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. 16965/2024 Ram Vilash Dadhich S/o Ram Jeevan Dadhich, Aged About 41 Years, R/o -31 Choudhary Colony, Near Kamla Nehru Nagar Ajmer Road Jaipur, Rajasthan 302021 ----Petitioner Versus Income Tax Officer, Ito Wd 4(2), Jpr, Registered Office At Room No 208 2Nd Floor, New Cerntral Revenue Building, Bhagwan Dass Road, Jaipur Rajasthan 302005 ----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 21st 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-16965/2024]

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. 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 21st 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/173

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