Bhavik Bhupendra Shah Vs ACIT (Bombay High Court)
The Bombay High Court considered a writ petition challenging a notice issued under Section 148 of the Income-tax Act, 1961 for Assessment Year (AY) 2015-16. One of the grounds raised by the petitioner was that the notice had been issued by the Jurisdictional Assessing Officer, whereas it ought to have been issued by the Faceless Assessing Officer. In support of this contention, reliance was placed on the High Court’s earlier judgment in Hexaware Technologies Limited v. Assistant Commissioner of Income Tax, Circle-15(0)(2), Mumbai and Ors.
Following the decision in Hexaware Technologies Limited, the High Court had earlier allowed the writ petition and set aside the impugned notice under Section 148. However, since the challenge to the Hexaware decision was pending before the Supreme Court, liberty had been granted to the Revenue to seek revival of the writ petition if the Supreme Court set aside that decision on the jurisdictional issue.
The Court noted that the Supreme Court subsequently remanded the issue arising from Hexaware Technologies Limited to the High Court for de novo consideration after taking into account the insertion of Section 147A, with effect from 1 April 2026 and having retrospective effect. The Supreme Court also clarified that all contentions raised before it, as well as any other grounds to challenge the notices, could be urged before the High Court, without expressing any opinion on the merits.
