ANIL BAPURAO PATIL vs. INCOME TAX OFFICER WARD 1, PANDHARPUR AND ORS

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WP/9769/2025HC BombayHCBM07036579202516 July 2025Author: HON'BLE SHRI JUSTICE B.P. COLABAWALLA,HON'BLE SHRI JUSTICE FIRDOSH PHIROZE POONIWALLA3 pages
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What did the High Court hold?

The Bombay High Court, following its own Division Bench decision in Hexaware Technologies Ltd. V/S Assistant Commissioner of Income-tax, Circle 15(1)(2), held that the impugned Notice issued under Section 148 of the Income Tax Act, 1961, was liable to be set aside. The Court acknowledged the Revenue's submission that the Hexaware judgment was under challenge before the Supreme Court but noted the absence of any stay. Consequently, the Court set aside the Notice and all consequential proceedings. However, the Court granted liberty to the Revenue to revive the Writ Petition if the Supreme Court were to set aside the Hexaware Technologies Ltd. decision. The Court clarified that upon revival, the petition would be decided on its merits, considering other grounds raised by the petitioner. The Rule was made absolute, and the Writ Petition was disposed of.

What were the facts?

The petitioner, Anil Bapurao Patil, filed a Writ Petition challenging a Notice issued under Section 148 of the Income Tax Act, 1961. A primary ground for challenge was that the Notice was issued by the Jurisdictional Assessing Officer, whereas the law mandates issuance by a Faceless Assessing Officer. The petitioner argued this was a fatal defect invalidating the Notice. The Revenue acknowledged that this issue was decided by a Division Bench of the Bombay High Court in Hexaware Technologies Ltd. V/S Assistant Commissioner of Income-tax, Circle 15(1)(2), but noted that this decision was under challenge before the Supreme Court, though no stay was in place.

What were the issues?

1. Whether the Notice issued under Section 148 of the Income Tax Act, 1961, is invalid due to being issued by the Jurisdictional Assessing Officer instead of the Faceless Assessing Officer, as mandated by law? Assessee's Contention: The petitioner argued that the issuance of the Section 148 Notice by the Jurisdictional Assessing Officer, when the law requires it to be issued by the Faceless Assessing Officer, constitutes a fatal defect rendering the Notice liable to be quashed. The petitioner relied on the decision in Hexaware Technologies Ltd. V/S Assistant Commissioner of Income-tax, Circle 15(1)(2) [(2024) 162 taxmann.com 225 (Bombay)]. Revenue's Contention: The Revenue conceded that the issue was covered by the Hexaware Technologies Ltd. judgment but stated that this judgment had been challenged before the Supreme Court and was likely to be heard soon. The Revenue acknowledged that there was no stay on the Hexaware Technologies Ltd. decision.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

136-9769-2025.doc

IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION WRIT PETITION NO. 9769 OF 2025 Anil Bapurao Patil .. Petitioner. Versus Income Tax Officer, Ward-1 Pandharpur & Others .. Respondents Adv. Rutuja N. Pawar with Adv. Hetal Laghave and Adv. Sneha More, for the Petitioner. Adv. Akhileshwar Sharma, for the Respondents.

CORAM: B. P. COLABAWALLA & FIRDOSH P. POONIWALLA, JJ. DATE: JULY 16, 2025 P. C.

1.

Rule. Respondents waive service. With the consent of the parties, Rule made returnable forthwith and heard finally.

2.

The above Writ Petition interalia challenges the Notice issued under Section 148 of the Income Tax Act, 1961 on various grounds. One of the grounds is that the Notice has been issued by the Jurisdictional Assessing Officer when the law mandates that it has to be issued by the Faceless Assessing Officer. This is a fatal defect and therefore the Notice has to be quashed, is the argument of the Petitioner. JULY 16, 2025 S.R.JOSHI SMITA RAJNIKANT JOSHI RAJNIKANT JOSHI Date: 2025.07.21 12:32:40 +0530

136-9769-2025.doc

3.

It is the Petitioners’ contention that this issue is squarely covered by a decision of a Division Bench of this Court in the case of Hexaware Technologies Ltd. V/S Assistant Commissioner of Income-tax, Circle 15(1)(2) [(2024) 162 taxmann.com 225 (Bombay)].

4.

On the other hand, the learned advocate appearing on behalf of the Revenue stated that though it is true that this issue is concluded by the decision in Hexaware Technologies Ltd (supra), the said decision has been challenged before the Hon’ble Supreme Court, and the Hon’ble Supreme Court is likely to take up the matter immediately on re-opening. He has fairly stated that there is no stay to the judgment in Hexaware Technologies Ltd (supra).

5.

Considering these facts, we do not propose to keep the matter pending in this Court. Once it is fully covered by the decision in Hexaware Technologies Ltd (supra) we are bound to follow it.

6.

We accordingly set aside the impugned Notice issued under Section 148 and all other proceedings/orders emanating therefrom. JULY 16, 2025 S.R.JOSHI

136-9769-2025.doc

7.

We however grant liberty to the Revenue to revive the above Writ Petition in the event the decision in Hexaware Technologies Ltd (supra) is set aside by the Hon’ble Supreme Court on this issue. We make it clear that it will not be necessary for the Revenue to file a separate Interim Application to seek a revival of this Petition and the same can be done simply by moving a Praecipe before this Court.

8.

We also make it clear that once the Petition is revived and restored, the same would have to be decided on its own merits considering that several other issues are also raised challenging the Notice issued under Section 148. 9. Rule is accordingly made absolute and the Writ Petition is also disposed of in terms thereof. However, there shall be no order as to costs.

10.

This order will be Personal Assistant of this Court. All concerned will act on production by fax or email of a digitally signed copy of this order. [FIRDOSH P. POONIWALLA, J.] [B. P. COLABAWALLA, J.] JULY 16, 2025 S.R.JOSHI

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