Ruchi Bhavik Shah Ay 2020 21 vs Assistant Commissioner of Income… — Income Tax | Bombay HC (2025)

Ruchi Bhavik Shah Ay 2020 21 vs Assistant Commissioner of Income… — Income Tax | Bombay HC (2025)

What the court decided

AI extract

Outcome

Impugned Section 148 Notice and all proceedings/orders emanating therefrom set aside; Rule made absolute; Writ Petition disposed of with liberty to the Revenue to revive by Praecipe if the Supreme Court sets aside Hexaware Technologies Ltd (supra); no order as to costs

Issue for consideration

Whether the Notice under Section 148 of the Income Tax Act, 1961 issued by the Jurisdictional Assessing Officer, instead of the Faceless Assessing Officer, suffers from a fatal defect and is liable to be quashed

Court's answer

Once the issue is fully covered by the Division Bench decision in Hexaware Technologies Ltd (supra), the Court is bound to follow it and does not propose to keep the matter pending

Ratio / Principle

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

Key takeaways

Liberty is granted to the Revenue to revive the Writ Petition, by moving a Praecipe without filing a separate Interim Application, if the decision in Hexaware Technologies Ltd (supra) is set aside by the Hon’ble Supreme Court; if the Supreme Court dismisses the SLP, there would be no question of any revivalratio¶25
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 raisedratio¶26

Detailed headnote1 paragraphs

INCOME TAX – Section 148 notice – Faceless Assessment – Writ petition challenging Notice under Section 148 of the Income Tax Act, 1961 on the ground that it was issued by the Jurisdictional Assessing Officer when the law mandates issue by the Faceless Assessing Officer, a contended fatal defect – Petitioner relied on Division Bench decision in Hexaware Technologies Ltd. V/S Assistant Commissioner of Income-tax, Circle 15(1)(2), (2024) 162 taxmann.com 225 (Bombay); Revenue conceded the issue was concluded thereby and that there is no stay, though the decision is under challenge before the Hon’ble Supreme Court – Held, once fully covered by Hexaware Technologies Ltd (supra) the Court is bound to follow it; impugned Section 148 Notice and all proceedings/orders emanating therefrom set aside; Rule made absolute and Writ Petition disposed of, no order as to costs – Liberty to Revenue to revive the Petition simply by moving a Praecipe (no separate Interim Application necessary) if the Supreme Court sets aside Hexaware on this issue; no revival if the SLP is dismissed; revived Petition to be decided on its own merits on the several other issues raised.

2025:BHC-AS:36840-DB

11-WP-926-2025.doc

IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION

WRIT PETITION NO. 926 OF 2025

Ruchi Bhavik Shah .. Petitioner

Versus

Assistant Commissioner of Income-tax, Central Circle 2, Nashik and Ors. .. Respondents

Adv. Madhur Agrawal , i/b Adv. Vinod Kankani, for the Petitioner .

Adv. Ashok Kotangle , a/w Adv. Vishnu Chaudhari, Adv. Nikitesh Kotangale, Adv. Neha Pende, Adv. Smita Thakur, Adv. Prosper D’souza, for the Respondents.

CORAM: B. P. COLABAWALLA & FIRDOSH P. POONIWALLA, JJ. DATE: AUGUST 25, 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

Darshan Patil

Page 1 of 4 AUGUST 25, 2025

11-WP-926-2025.doc

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 Petitioner’s 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 shortly. The learned Counsel for the Revenue 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.

Page 2 of 4 AUGUST 25, 2025

Darshan Patil

11-WP-926-2025.doc

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

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. It is needless to clarify that if the Hon’ble Supreme Court dismisses the SLP challenging the decision in Hexaware Technologies Ltd (supra) , there would be no question of any revival.

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.

Page 3 of 4 AUGUST 25, 2025

Darshan Patil

11-WP-926-2025.doc

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.]

Page 4 of 4 AUGUST 25, 2025

Darshan Patil

Signed by: Darshan Patil Designation: PA To Honourable Judge Date: 02/09/2025 19:00:00