Rajesh Todwal S/O Prem Chand Todwal Vs Dgit (Inv.) Rajasthan… — Income Tax | Rajasthan HC (2025)

Rajesh Todwal S/O Prem Chand Todwal Vs Dgit (Inv.) Rajasthan… — Income Tax | Rajasthan HC (2025)

What the court decided

AI extract

Outcome

Notice dated 28 March 2023 issued under Section 148 of the Income Tax Act, 1961 and the consequential assessment order dated 7 March 2024 quashed and set aside; liberty to Revenue to revive the notice upon any interference by the Apex Court with the judgments in Hexaware Technologies Ltd., Sharda Devi Chhajer or Shree Cement Limited; all rights and contentions of the parties kept open; petitioner reserved the right to raise other grounds at an appropriate stage; pending applications, if any, disposed.

Issue for consideration

Whether the notice dated 28 March 2023 issued under Section 148 of the Income Tax Act, 1961 by the Jurisdictional Assessing Officer (JAO) and not the Faceless Assessing Officer (FAO) is valid. +1 more

Court's answer

The notice dated 28 March 2023 issued under Section 148 of the Income Tax Act, 1961 by the JAO instead of the FAO is not valid; it is quashed and set aside with liberty as prayed, keeping open all rights and contentions of the parties.

Ratio / Principle

Since the Section 148 notice itself is not valid, the consequential assessment order dated 7 March 2024 cannot be sustained and likewise stands quashed and set aside.

Key takeaways

Liberty is granted to the Revenue to revive the notice issued under Section 148 of the Act in case the Apex Court interferes with the judgments in Hexaware Technologies Ltd., Sharda Devi Chhajer or Shree Cement Limited.ratio¶20

Detailed headnote1 paragraphs

Rajasthan High Court (Jaipur Bench), D.B. Civil Writ Petition No. 4181/2024 (order dated 03/09/2025) by Hon'ble Chief Justice K.R. Shriram and Hon'ble Mr. Justice Maneesh Sharma: Following this Court's decision in Shree Cement Limited Vs. Assistant Commissioner of Income-Tax & Others (DB Civil Writ Petition No.10540/2024, dated 05.08.2025, unreported), which itself followed Sharda Devi Chhajer Vs. The Income Tax Officer & Another (2025 SCCOnLine Raj 3386) and Hexaware Technologies Ltd. Vs. Assistant Commissioner of Income-tax, Circle 15(1)(2) ([2024] 162 taxmann.com 225 (Bombay)), the Court held that a notice dated 28 March 2023 issued under Section 148 of the Income Tax Act, 1961 by the Jurisdictional Assessing Officer (JAO) and not the Faceless Assessing Officer (FAO) is bad and not valid, and quashed and set aside that notice together with the consequential assessment order dated 7 March 2024. Liberty was given to the Revenue to revive the Section 148 notice if the Apex Court interferes with any of those three judgments (noting that a Special Leave Petition against Hexaware Technologies Ltd. is pending with notice issued). All rights and contentions were kept open; the petitioner reserved the right to raise other grounds at an appropriate stage. Petition disposed; pending applications, if any, also disposed.

[2025:RJ-JP:35259-DB]

HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR

D.B. Civil Writ Petition No. 4181/2024

Rajesh Todwal S/o Prem Chand Todwal, Aged About 63 Years, 835, Nawab Sahib Ki Haweli, Tripolia Bazar, Jaipur 302003

----Petitioner

Versus

1. Dgit (Inv.) Rajasthan, Income-Tax Department, Ncr Building, Statue Circle, Jaipur.

1. Principal Commissioner Of Income Tax, Income Tax Department, Ncr Building, Statue Circle, Jaipur

1. Deputy Commissioner Of Income Tax, Central Circle-4, Income Tax Department, Ncr Building, Statue Circle, Jaipur

----Respondents

For Petitioner(s)	: Mr. PK Kasliwal with Mr. Priyesh Kasliwal
For Respondent(s)	: Mr. Siddharth Bapna with
	Mr. Sarvesh Jain &
	Mr. Meyhul Miittal

HON'BLE THE CHIEF JUSTICE MR. K.R. SHRIRAM HON'BLE MR. JUSTICE MANEESH SHARMA Order

03/09/2025

At the outset, Mr. Kasliwal states that the legal ground that the notice under Section 148 of the Income Tax Act, 1961, is not valid because it has been issued by Jurisdictional Assessing Officer (JAO) and not Faceless Assessing Offider (FAO), has not been taken. Counsel states in the Court that petition is yet to be admitted and if the Court insists, petitioner will take out an application for adding grounds.

Mr. Bapna states that since this Court has taken a view that such a notice will be invalid, he will not insist on formal amendment in the petition.

[2025:RJ-JP:35259-DB]

[CW-4181/2024]

(2 of 3)

Ground referred to is that the notice dated 28^th March 2023 under Section 148 of the Income Tax Act, 1961 has been issued by a Jurisdictional Assessing Officer (JAO) and not Faceless Assessing Offider (FAO) and this Court in the case of Shree Cement Limited Vs. Assistant Commissioner of Income-Tax & Others¹ following Sharda Devi Chhajer Vs. The Income Tax Officer & Another² and Hexaware Technologies Ltd. Vs. Assistant Commissioner of Income-tax, Circle 15(1)(2)³ , has held that such a notice will be bad and not valid.

At the same time, Mr. Bapna states that in Hexaware Technologies Ltd. ( supra ), Revenue has preferred a Special Leave Petition and notice has been issued. Counsel states that in view of the law as it stands today, Court may grant the prayer of petitioner but in case the Apex Court interferes with judgment in Hexaware Technologies Ltd. ( supra ), Sharda Devi Chhajer ( supra ) or Shree Cement Limited ( supra ), then Revenue should be given liberty to revive the notice issued under Section 148 of the Act.

Mr. Kasliwal states that in view of the above, for the present, petitioner will reserve his right to raise other grounds at an appropriate stage.

Therefore, keeping open all rights and contentions of parties, we quash and set aside notice dated 28^th March 2023 issued under Section 148 of the Act with liberty, as prayed.

Since we have held that notice issued under Section 148 of the Act itself is not valid, the consequential assessment order

1 DB Civil Writ Petition No.10540/2024, dated 05.08.2025 at Jaipur Bench (unreported)

2 2025 SCCOnLine Raj 3386

3 [2024] 162 taxmann.com 225 (Bombay)

(3 of 3)

[2025:RJ-JP:35259-DB]

[CW-4181/2024]

dated 07^th March 2024 cannot be sustained and the same also stand quashed and set aside.

Petition disposed.

Consequently, all pending applications, if any, also stand disposed.

(MANEESH SHARMA),J (K.R. SHRIRAM),CJ

KAMLESH KUMAR-RAHUL/4