OM PRAKASH GOYAL S/O SHRI RAM GOPAL SARRAF vs. ASSISTANT COMMISSIONER OF INCOME TAX

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CW/1879/2024HC RajasthanRJHC02008482202409 September 2025Bench: K.R. SHRIRAM,MANEESH SHARMA3 pages
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What did the High Court hold?

The High Court quashed and set aside the notice dated March 26, 2023, issued under Section 148 of the Income Tax Act, 1961. The Court followed its own previous judgments in Shree Cement Limited, Sharda Devi Chhajer, and the Bombay High Court's decision in Hexaware Technologies Ltd., which held that such notices issued by a JAO instead of an FAO are invalid. The Court also quashed and set aside the consequential assessment order dated March 7, 2024, as it was based on an invalid notice. The Court granted liberty to the Revenue to revive the notice if the Supreme Court were to interfere with the aforementioned judgments. The petitioner reserved the right to raise other grounds at an appropriate stage. The petition was disposed of, and all pending applications were also disposed of.

What were the facts?

The petitioner, Om Prakash Goyal, challenged a notice dated March 26, 2023, issued under Section 148 of the Income Tax Act, 1961, and a consequential assessment order dated March 7, 2024. The primary contention was that the Section 148 notice was issued by a Jurisdictional Assessing Officer (JAO) instead of a Faceless Assessing Officer (FAO). The respondents, Assistant Commissioner of Income Tax and Union of India, acknowledged that a ground raised by the petitioner was covered by a previous judgment of the High Court. The Revenue also indicated that while they agreed with the prayer for the present, they sought liberty to revive the notice if the Supreme Court were to interfere with the precedents relied upon.

What were the issues?

1. Whether a notice dated March 26, 2023, issued under Section 148 of the Income Tax Act, 1961, by a Jurisdictional Assessing Officer (JAO) is valid, or if it should have been issued by a Faceless Assessing Officer (FAO)? (Question of law turning on Section 148 of the Income Tax Act, 1961). Assessee's Contention: The notice is bad and not valid because it was issued by a JAO and not an FAO. Relied on judgments in Shree Cement Limited Vs. Assistant Commissioner of Income-Tax & Others, 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 Revenue agreed that one of the grounds raised was covered by a judgment of the Court. They stated that in Hexaware Technologies Ltd. (supra), a Special Leave Petition was preferred, and notice was issued. The Revenue requested liberty to revive the notice issued under Section 148 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

[2025:RJ-JP:36426-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Civil Writ Petition No. 1879/2024 Om Prakash Goyal S/o Shri Ram Gopal Sarraf, Aged About 56 Years, R/o Brij Villa, D-70, Residency Road, C-Scheme, Jaipur, Rajasthan - 302005 ----Petitioner Versus 1. Assistant Commissioner Of Income Tax, Central Circle-2 Room No. 410 4Th Floor Jeevan Nidhi-2 Lic Building Ambedkar Circle Jaipur Rajasthan - 302005 2. 3. Deputy Commissioner Of Income Tax, Acit Central Circle- 2, Room No. 410, 4Th Floor, Jeevan Nidhi-2, Lic Building, Ambedkar Circle, Jaipur, Rajasthan - 302005. Union of India, through Secretary, Ministry of Finance, Government of India, North Block, New Delhi-110001. ----Respondents For Petitioner(s) : Mr. Rajat Sharma Advocate with Mr. Saksham Pandey Advocate. For Respondents No.1 & 2 For Respondent No.3 : : Mr. Siddharth Bapna Advocate with Mr. Sarvesh Jain Advocate & Mr. Meyhul Mittal Advocate. Mr. Devesh Yadav Advocate with Mr. Yatharth Asopa Advocate & Mr. Chinmay Surolia Advocate for Mr. R.D. Rastogi, ASG HON'BLE THE CHIEF JUSTICE MR. K.R. SHRIRAM HON'BLE MR. JUSTICE MANEESH SHARMA Order 09/09/2025 1. Mr. Siddharth Bapna, who appears on advance copy, agrees with Mr. Rajat Sharma that one of the grounds raised certainly is covered by a judgment of this Court. 2. Ground referred to is that the notice dated 26th March 2023 under Section 148 of the Income Tax Act, 1961 has been issued by a Jurisdictional Assessing Officer (JAO) and not Faceless

[2025:RJ-JP:36426-DB] (2 of 3) [CW-1879/2024] Assessing Officer (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. 3. At the same time, Mr. Siddharth Bapna 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. Rajat Sharma 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 26th March 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. Since we have held that the notice issued under Section 148 of the Act itself is not valid, the consequential assessment order 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:36426-DB] (3 of 3) [CW-1879/2024] dated 07th March 2024 cannot be sustained. The same is also quashed and set aside. 9. Mr. Rajat Sharma’s statement that application to withdraw the appeal will be filed within two weeks, is accepted. (MANEESH SHARMA),J (K.R. SHRIRAM),CJ SANJAY KUMAWAT/61

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