Sj Contracts Private Limited vs the Assistant Commissioner of… — Income Tax | Bombay HC (2025)

Sj Contracts Private Limited vs the Assistant Commissioner of… — Income Tax | Bombay HC (2025)

What the court decided

AI extract

Outcome

Impugned Section 148 Notice and all other proceedings/orders emanating therefrom set aside; Rule made absolute and Writ Petition disposed of; liberty to the Revenue to revive the Petition by Praecipe if the Hexaware Technologies Ltd decision is set aside by the Hon'ble Supreme Court; no order as to costs.

Issue for consideration

Whether the Notice under Section 148 of the Income Tax Act, 1961, having been issued by the Jurisdictional Assessing Officer instead of the Faceless Assessing Officer as the law mandates, suffers a fatal defect and must be quashed.

Court's answer

The issue of the Section 148 Notice being required to be issued by the Faceless Assessing Officer is fully covered by the Division Bench decision in Hexaware Technologies Ltd (supra), and this Court is bound to follow it; the matter is therefore not kept pending despite the Revenue's statement that the decision is challenged before the Supreme Court with no stay.

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 if the decision in Hexaware Technologies Ltd (supra) is set aside by the Hon'ble Supreme Court on this issue, without filing a separate Interim Application, simply by moving a Praecipe before this Court.ratio¶7
If the Petition is revived and restored, it will be decided on its own merits, since several other issues challenging the Section 148 Notice have been raised.ratio¶8

Detailed headnote1 paragraphs

Income Tax – Notice under Section 148, Income Tax Act, 1961 – Issuance by Jurisdictional Assessing Officer instead of Faceless Assessing Officer – Writ Petition by assessee seeking quashing of the Section 148 Notice on the ground that it was issued by the Jurisdictional Assessing Officer when the law mandated issuance by the Faceless Assessing Officer – Held, the issue is squarely covered by the Division Bench decision of this Court in Hexaware Technologies Ltd. V/S Assistant Commissioner of Income-tax, Circle 15(1)(2) [(2024) 162 taxmann.com 225 (Bombay)], and this Court is bound to follow it – Though the Revenue pointed out that the Hexaware decision is challenged before the Hon'ble Supreme Court (with no stay operating), the Court declined to keep the matter pending – The impugned Section 148 Notice and all other proceedings/orders emanating therefrom set aside – Liberty granted to the Revenue to revive the Writ Petition by merely moving a Praecipe (without a separate Interim Application) if the Hexaware decision is set aside by the Supreme Court – A revived Petition to be decided on its own merits, other issues challenging the Notice remaining open – Rule made absolute, Petition disposed of, no order as to costs.

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Digitally signed by TRUSHA TRUSHA TUSHAR TUSHAR MOHITE MOHITE Date: 2025.07.16 11:33:03 +0530

IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION

WRIT PETITION NO.9290 OF 2025

SJ Contracts Private Limited .. Petitioner

Versus

The Assistant Commissioner of Income Tax Central Circle 1(2) & Ors.

.. Respondents

Mr.Ruturaj Gurjar, Advocate for the Petitioner.

Mr.Ashok Kotangale a/w Ms.Smita Thakur, Advocate for Respondents.

CORAM: B. P. COLABAWALLA & FIRDOSH P. POONIWALLA, JJ. DATE: JULY 14, 2025

P. C.

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

Mohite

Page 1 of 3 JULY 14, 2025

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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. He 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.

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

Page 2 of 3 JULY 14, 2025

Mohite

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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 14, 2025

Mohite