Gauri Vinayak Builders and Developers Pvt. Ltd. vs Assistant… — Income Tax | Bombay HC (2025)

Gauri Vinayak Builders and Developers Pvt. Ltd. vs Assistant… — Income Tax | Bombay HC (2025)

What the court decided

AI extract

Outcome

Rule made absolute; impugned Notice under Section 148 and all proceedings/orders emanating therefrom set aside; Writ Petition disposed of with no order as to costs; liberty to Revenue to revive the Petition by Praecipe (without a separate Interim Application) if the Hexaware Technologies decision is set aside by the Hon'ble Supreme Court.

Issue for consideration

Whether a Notice under Section 148 of the Income Tax Act, 1961 issued by the Jurisdictional Assessing Officer, when the law mandates issuance by the Faceless Assessing Officer, is a fatal defect requiring the Notice to be quashed. +1 more

Court's answer

The impugned Notice issued under Section 148 and all other proceedings/orders emanating therefrom are set aside.

Ratio / Principle

Since the issue is fully covered by the Division Bench decision in Hexaware Technologies Ltd. (supra), this Court is bound to follow it and declines to keep the matter pending, notwithstanding that the said decision is challenged before the Hon'ble Supreme Court (with no stay).

Key takeaways

Liberty is granted to the Revenue to revive the Writ Petition if the Hexaware Technologies decision is set aside by the Hon'ble Supreme Court; no separate Interim Application is required, and revival can be sought simply by moving a Praecipe before the Court.ratio¶23
If the Petition is revived and restored, it would have to be decided on its own merits, since several other issues challenging the Section 148 Notice were also raised.ratio¶24

Detailed headnote1 paragraphs

Gauri Vinayak Builders and Developers Pvt. Ltd. v. Asst. Commissioner of Income Tax, Circle 1, Kalyan (Bombay HC, DB, July 21, 2025): Where a challenge to a Section 148, Income Tax Act, 1961 Notice — on the ground that it was issued by the Jurisdictional Assessing Officer instead of the mandated Faceless Assessing Officer — is squarely covered by the Court's earlier Division Bench decision in Hexaware Technologies Ltd. (2024) 162 taxmann.com 225 (Bombay), the Court is bound to follow that decision even though it is challenged before the Supreme Court (with no stay). The Section 148 Notice and all proceedings/orders emanating therefrom were set aside; Rule was made absolute and the Petition disposed of, with no order as to costs. The Revenue was granted liberty to revive the Petition simply by Praecipe (no separate Interim Application needed) if the Supreme Court sets aside Hexaware; a revived Petition would be decided afresh on its own merits, other grounds being open.

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IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION

WRIT PETITION NO. 12889 OF 2024

Digitally signed by UDAY UDAY SHIVAJI SHIVAJI JAGTAP JAGTAP Date:2025.07.23 11:22:52 +0530

Gauri Vinayak Builders and Developers Pvt. Ltd. .. Petitioner Versus Asst. Commissioner of Income Tax, Circle 1, Kalyan & Ors. .. Respondents

Mr. Shobhit Mishra a/w Mahaveer Jain , Advocates for the Petitioner.

Mr. Akhileshwar Sharma, Advocate for the Respondents.

CORAM : B. P. COLABAWALLA & FIRDOSH P. POONIWALLA, JJ. DATE : JULY 21, 2025

P. C.

1. In the above Petition Rule was issued on 9^th December 2024 and interim relief was also granted interalia staying the Notice issued under Section 148 of the Income Tax Act, 1961. Today, though the matter has come up under the caption “for directions”, we have, with the consent of parties, heard it 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

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Faceless Assessing Officer. This is a fatal defect and therefore the Notice has to be quashed, is the argument of the Petitioner.

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.

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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 digitally signed by the Private Secretary/ 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.]

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