Delta Air Lines Inc. vs Assistant Commissioner of Income-Tax… — Income Tax | Bombay HC (2025)

Delta Air Lines Inc. vs Assistant Commissioner of Income-Tax… — Income Tax | Bombay HC (2025)

What the court decided

AI extract

Outcome

Rule made absolute; impugned Section 148 notice and all consequential proceedings/orders set aside; writ petition disposed of in those terms with liberty to the Revenue to revive it by Praecipe if the Supreme Court sets aside Hexaware Technologies Ltd (supra); no order as to costs.

Issue for consideration

Whether the impugned Notice under Section 148, having been issued by the Jurisdictional Assessing Officer instead of the Faceless Assessing Officer as mandated by law, suffers a fatal defect and must 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

The writ petition is fully covered by the decision in Hexaware Technologies Ltd (supra), and being so covered, this Court is bound to follow it.

Key takeaways

Liberty is granted to the Revenue to revive the writ petition in the event the decision in Hexaware Technologies Ltd (supra) is set aside by the Hon'ble Supreme Court on this issue.ratio¶25
Revival does not require a separate Interim Application; the Revenue may seek it simply by moving a Praecipe before the Court.ratio¶25
If the petition is revived and restored, it must be decided on its own merits, several other issues having been raised challenging the Section 148 notice.

Detailed headnote1 paragraphs

Bombay High Court (B. P. Colabawalla & Firdosh P. Pooniwalla, JJ.) allowed the writ petition filed by Delta Air Lines Inc. challenging a notice issued under Section 148 of the Income Tax Act, 1961. Proceeding on the footing that the notice was issued by the Jurisdictional Assessing Officer whereas the law mandates issue by the Faceless Assessing Officer, and noting that the point was squarely covered by the Division Bench decision in Hexaware Technologies Ltd. (2024) 162 taxmann.com 225 (Bombay) - which remains un-stayed despite a challenge before the Hon'ble Supreme Court - the Court held itself bound to follow Hexaware and set aside the impugned notice together with all proceedings/orders emanating therefrom. Liberty was reserved to the Revenue to revive the petition, if Hexaware is set aside by the Supreme Court, by moving a mere Praecipe without a separate Interim Application; upon revival the petition would be decided afresh on its merits, other grounds against the notice remaining open. Rule was made absolute and the petition disposed of, with no order as to costs.

48-wp-3452-2024.doc

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION

WRIT PETITION NO.3452 OF 2024

Delta Air Lines Inc .. Petitioner.

Versus

Digitally signed by SMITA SMITA RAJNIKANT RAJNIKANT JOSHI JOSHI Date: 2025.07.19 13:48:20 +0530

Assistant Commissioner of Income Tax International Taxation Circle 2-1-2

.. Respondent.

Adv. P. J. Pardiwalla, Sr. Advocate with Adv. Jeet Kamdar i/b. Atul K. Jasani, for the Petitioner.

Adv.Sushma Nagaraj with Adv. Abhinav Palsikar , for the Respondents.

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

P. C.

1 In the above Petition Rule was issued on 3^rd October 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.

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 Page 1 of 3 JULY 16, 2025

S.R.JOSHI

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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.

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)] .

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. She has fairly stated that there is no stay to the judgment in Hexaware Technologies Ltd (supra).

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.

Page 2 of 3 JULY 16, 2025

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We accordingly set aside the impugned Notice issued under Section 148 and all other proceedings/orders emanating therefrom.

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.

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.

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.

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.]

Page 3 of 3 JULY 16, 2025

S.R.JOSHI