Mani Ram Vs PCIT (Rajasthan High Court)
The Rajasthan High Court considered a petition challenging a notice issued on 24 March 2024 under Section 148 of the Income Tax Act and the assessment order dated 12 March 2025 passed under Section 147. The petitioner argued that the notice was issued by the Jurisdictional Assessing Officer (JAO) instead of the Faceless Assessing Officer (FAO), rendering it invalid. Reliance was placed on earlier decisions of the same High Court in Shree Cement Limited and Sharda Devi Chhajer, which, following the Bombay High Court’s ruling in Hexaware Technologies Ltd., held that reassessment notices issued by the JAO are invalid where the faceless regime applies.
The Revenue referred to a Gujarat High Court decision in Talati and Talati LLP, where the Court examined a Section 148 notice in the context of search-related proceedings under Sections 132 and 132A. In that case, the Gujarat High Court held that the e-assessment notification dated 29 March 2022 does not apply where a Section 148 notice is based on information obtained during search or requisition proceedings. It further held that Explanation 2 to Section 148 requires human application of mind and therefore the concept of automated case allocation under the faceless scheme cannot apply to search-based matters.
