Rajesh Todwal S/o Prem Chand Todwal Vs Dgit (Inv.) Rajasthan (Rajasthan High Court)
Summary: The Rajasthan High Court heard a petition challenging a notice dated 28 March 2023 issued under Section 148 of the Income Tax Act, 1961. The petitioner contended that the notice was invalid as it was issued by the Jurisdictional Assessing Officer (JAO) instead of a Faceless Assessing Officer (FAO). Counsel for the petitioner reserved the right to raise additional grounds at a later stage.
The Court noted that precedents, including Shree Cement Limited v. ACIT, Sharda Devi Chhajer v. ITO, and Hexaware Technologies Ltd. v. ACIT, had held that notices under Section 148 issued by a JAO rather than FAO are invalid. While the revenue had filed a Special Leave Petition in the Hexaware case, the Court considered the existing law and agreed that the notice issued to the petitioner was not valid under the faceless assessment framework.
The Court therefore quashed and set aside the Section 148 notice dated 28 March 2023. Consequently, the consequential assessment order dated 7 March 2024, which was based on the invalid notice, was also quashed. The Court kept open the right for the revenue to revive proceedings if the Apex Court were to alter the precedents in the Hexaware, Sharda Devi Chhajer, or Shree Cement cases.
