Rajasthan High Court - Jaipur
Shree Cement Limited vs Assistant Commissioner Of Income Tax ... on 5 August, 2025
Author: Anand Sharma
Bench: Anand Sharma
[2025:RJ-JP:29991-DB]
HIGH COURT OF JUDICATURE FOR RAJASTHAN
BENCH AT JAIPUR
D. B. Civil Writ Petition No. 10540/2024
Shree Cement Limited, Having its office at Bangur Nagur,
Andheri Deori, Masuda Road, Beawar, Ajmer- 305901, Rajasthan
through its Joint President Shri Arvind Khicha, S/o Shri Indermal
Khicha, Aged About 60 Years R/o 5-6, Nanesh Nagar, Near
Jawahar Bhawan, Vinod Nagar, Beawar, Rajasthan- 305901.
----Petitioner
Versus
1. Assistant Commissioner of Income Tax, Central Circle, Cr
Building, Opp. Sessions Court, Jaipur Road, Ajmer,
Rajasthan- 305001
2. Additional Commissioner of Income Tax, Central Circle,
Aaykar Bhawan, Subcity Centre, Savina, Udaipur,
Rajasthan- 313001
3. Principal Commissioner of Income Tax, Central Circle, 4Th
Floor, Jeevan Nidhi- II, LIC Building, Bhawani Singh Road,
Jaipur, Rajasthan- 302005
4. Director General of Income Tax (Investigation), New
Central Revenue Building, Statue Circle, Jaipur,
Rajasthan- 302005
5. Union of India, through The Secretary, Department of
Revenue, Government of India, North Block, New Delhi-
110001
----Respondents
For Petitioner : Mr. Percy Pardiwala, Sr. Adv.
Mr. Anant Kasliwal, Sr. Adv. assisted
by Mr. Niraj Sheth Advocate,
Mr. Shashank Kasliwal Advocate,
Mr. Raghav Krishnatri Advocate,
Mr. Diwakar Khaldwa Advocate &
Ms. Divisha Misra Advocate.
For Respondents No. : Mr. Siddharth Bapna Advocate with
1 and 2 Mr. Sarvesh Jain Advocate,
Mr. Meyhul Miittal Advocate &
Mr. Rahul Kumar Advocate.
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HON'BLE THE CHIEF JUSTICE MR. K.R. SHRIRAM
HON'BLE MR. JUSTICE ANAND SHARMA
JUDGMENT
REPORTABLE
05/08/2025
(Per: Chief Justice)
1. Petitioner impugns the legality and validity of notice dated
31st March 2024 issued under Section 148A(b) of the Income Tax
Act, 1961 (for short, 'the Act'), reassessment notice dated 1 st May
2024 issued under Section 148 of the Act and order dated 1 st May,
2024 passed under Section 148A(d) of the Act. According to
petitioner, these are all invalid, illegal, barred by limitation and
issued wholly without jurisdiction.
2. Petitioner is engaged in the business of manufacturing and
sale of cement. Petitioner, (hereinafter referred to as assessee),
filed its return of income on 31st November 2017 for Assessment
Year 2017-18 declaring total income of Rs. 4,53,70,36,160/-.
Assessee declared gross total income of Rs. 17,00,70,85,867/-
and after claiming deduction of Rs. 12,47,00,49,710/- arrived at
declared total income of Rs. 4,53,70,36,160/-. This return was
later revised on 31st March 2019 with a returned income of Rs.
2,87,91,24,160/- by declaring gross total income of Rs.
16,33,35,78,814/-, in which a deduction of Rs. 13,45,44,54,657/-
was claimed.
3. An assessment under Section 143(3) of the Act was
completed on 12th August 2021 by making various additions.
Against the said assessment order, assessee preferred an appeal
before the Commissioner of Income Tax (Appeals) [for short
'CIT(A)'], who vide order dated 8th June 2023 partially allowed
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assessee's appeal. This order was challenged by assessee before
Income Tax Appellate Tribunal, Jaipur Bench, Jaipur (for short
'ITAT'), which allowed the appeal. It is petitioner's case and
rightly so, that orders passed by Assessing Officer, CIT(A) as also
ITAT confirms the fact that petitioner was entitled to deduction
under Section 80IA of the Act. Quantum was the only issue.
4. In the meanwhile, before the appeal was heard by the ITAT,
between 21st June 2023 to 26th June 2023, a survey action under
Section 133A of the Act was conducted in the case of assessee.
According to Revenue, during the course of survey proceedings,
new facts and information came to notice of the department,
which established that deduction under Section 80IA of the Act
claimed by assessee on account of profit from Solid Waste
Management System (SWM), profit from Water Treatment System
(WTS) and profit from Power Generated by New India Power
Undertaking (NIPU) are not admissible for various reasons. What
are the reasons, according to the department, can be found in the
impugned order dated 1st May 2024 passed under Section
148A(d) of the Act.
5. During the course of original assessment proceedings,
various queries were raised under Section 143(2) of the Act and
reply was given by assessee. Details of the notices as also the
replies can be found in Paragraph No. 4.3 and 4.4 of the petition.
One thing is clear from the queries raised as also the replies
given, was that the Assessing Officer was considering deduction
claimed by petitioner under Section 80IA of the Act.
6. Based on the observations of the survey team, Respondent
No. 1, namely Assistant Commissioner of Income Tax (ACIT),
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issued impugned notice dated 31st March 2024. In the notice, it
was alleged that new facts came to light during the survey
proceedings which established that deduction of Rs.
8,41,25,44,299/- claimed by petitioner under Section 80IA on
profits of SWM, WTS and NIPU was not admissible as no SWM,
WTS and NIPU, as envisaged under Section 80IA of the Act, were
in existence in petitioner's premises and the claim was
unsustainable on facts and in law.
Based on such survey proceedings, Respondent No. 1
alleged that he was in possession of information suggesting that
income chargeable to tax had escaped assessment.
7. By a communication dated 25th April 2024, petitioner filed a
detailed response to impugned notice dated 31 st March 2024 and
showed cause as to why petitioner was entitled to deduction
claimed under Section 80IA of the Act. In the reply, petitioner
submitted, inter alia, that
(a) impugned notice seeking to invoke provisions under Section
148 of the Act was barred by limitation;
(b) deduction claimed under Section 80IA of the Act had been
subjected to detailed scrutiny during original assessment
proceedings and thus, proceedings were based on change of
opinion;
(c) since the notice was issued beyond the period of three years
from the end of relevant assessment year, satisfaction of the
conditions of Section 149(1)(b) of the Act was necessary and
mere information was not sufficient;
(d) deduction under Section 80IA of the Act would not fall within
any of the terms prescribed in Section 149(1)(b) of the Act, i.e.,
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possession of books of accounts or other documents or evidence
which revealed that income chargeable to tax had escaped
assessment and such income should be represented in the form of
(i) asset (ii) expenditure in relation to an event/occasion and (iii)
entries in the books of accounts. The claim of deduction under
Section 80IA of the Act cannot satisfy all three criteria prescribed
under Section 149(1)(b) etc.
8. Notwithstanding this reply, Respondent No. 1 passed
impugned order dated 1st May 2024 under Section 148A(d) of the
Act rejecting petitioner's objections to reopen. Respondent No. 1
reiterated and repeated the allegations made in impugned notice
and came to a conclusion that petitioner had claimed wrong
deduction to the extent of Rs. 8,41,25,44,299/- under Section
80IA of the Act. Along with impugned order, Respondent No. 1
also issued impugned assessment notice dated 1 st May 2024
under Section 148 of the Act.
9. Being aggrieved by this notice as also order passed and
referred to hereinabove, petitioner has filed this petition on
various grounds. The issues that arise are:
(A) Whether the notice dated 1st May 2024 issued under Section
148 of the Act is barred by limitation as per first proviso to
Section 149 of the Act?
(B) Whether impugned notice dated 1st May 2024 is invalid and
bad in law being issued by Jurisdictional Assessing Officer (JAO)
and not Faceless Assessing Officer (FAO)?
(C) Whether the issues raised in impugned order show an alleged
escapement of income represented in the form of an asset or
expenditure in respect of transaction in relation to an event or an
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entry in the books of accounts as required under Section 149(1)
(b) of the Act?
(D) Whether Respondent No. 1 has proposed to reopen on the
basis of change of opinion? and
(E) When the claim of deduction under Section 80IA of the Act
has been consistently allowed in favour of petitioner by Assessing
Officer and the Appellate Authority in the earlier years can the
Assessing Officer carry a belief that there is escapement of
income.
10. Identical issues have been considered by a Division Bench of
High Court of Bombay, authored by one of us (the Chief Justice),
in Hexaware Technologies Ltd. v. Assistant Commissioner
of Income-tax, Circle 15(1)(2)1.
Issue 'A':
11. In Hexaware Technologies Ltd. (supra) also, the issue
under consideration was whether notice issued under Section 148
of the Act was barred by limitation. That question came to be
answered by the Court in Paragraph Nos. 24 to 30 thereof. It is
also settled law that validity of notice under Section 148 of the
Act must be judged on the basis of law existing on the date on
which such notice is issued. Paragraph Nos. 24 to 30 of the
decision of Hexaware Technologies Ltd. (supra) read as under:
"24. As regards issue no. 2, Section 149 of the Act reads as under:
149. Time limit for notice.--(1) No notice under section 148
shall be issued for the relevant assessment year,--
(a) if three years have elapsed from the end of the relevant
assessment year, unless the case falls under clause (b);
[(b) if three years, but not more than ten years, have elapsed
from the end of the relevant assessment year unless the Assessing
1 [2024] 162 taxmann.com 225 (Bombay)
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Officer has in his possession books of account or other documents or
evidence which reveal that the income chargeable to tax, represented
in the form of--
(i) an asset;
ii) expenditure in respect of a transaction or in relation to an event or
occasion; or
(iii) an entry or entries in the books of account,
which has escaped assessment amounts to or is likely to amount to
fifty lakh rupees or more:]
Provided that no notice under section 148 shall be issued at any time
in a case for the relevant assessment year beginning on or before 1st
day of April, 2021, if 28[a notice under section 148 or section 153A or
section 153C could not have been issued at that time on account of
being beyond the time limit specified under the provisions of clause
(b) of sub-section (1) of this section or section 153A or section 153C,
as the case may be], as they stood immediately before the
commencement of the Finance Act, 2021:
Provided further that the provisions of this sub-section shall not apply
in a case, where a notice under section 153A, or section 153C read
with section 153A, is required to be issued in relation to a search
initiated under section 132 or books of account, other documents or
any assets requisitioned under section 132A, on or before the 31st
day of March, 2021:
[Provided also that for cases referred to in clauses (i), (iii) and (iv) of
Explanation 2 to section 148, where,-
(a) a search is initiated under section 132; or
(b) a search under section 132 for which the last of authorisations is
executed; or
(c) requisition is made under section 132A,
after the 15th day of March of any financial year and the period for
issue of notice under section 148 expires on the 31st day of March of
such financial year, a period of fifteen days shall be excluded for the
purpose of computing the period of limitation as per this section and
the notice issued under section 148 in such case shall be deemed to
have been issued on the 31st day of March of such financial year:
Provided also that where the information as referred to in Explanation
1 to section 148 emanates from a statement recorded or documents
impounded under section 131 or section 133A, as the case may be, on
or before the 31st day of March of a financial year, in consequence of,
--
(a) a search under section 132 which is initiated; or
(b) a search under section 132 for which the last of authorisations is executed; or
(c) a requisition made under section 132A, after the 15th day of March of such financial year, a period of fifteen days shall be excluded for the purpose of computing the period of limitation as per this section and the notice issued under clause (b) of section 148A in such case shall be deemed to have been issued on the 31st day of March of such financial year:] Provided also that for the purposes of computing the period of limitation as per this section, the time or extended time allowed to the assessee, as per show-cause notice issued under clause (b) of section 148A or the period during which the proceeding under section 148A is stayed by an order or injunction of any court, shall be excluded:
(Downloaded on 11/08/2025 at 07:03:16 PM)[2025:RJ-JP:29991-DB] (8 of 22) [CW-10540/2024] Provided also that where immediately after the exclusion of the period referred to in the immediately preceding proviso, the period of limitation available to the Assessing Officer for passing an order under clause (d) of section 148A 30[does not exceed seven days], such remaining period shall be extended to seven days and the period of limitation under this sub-section shall be deemed to be extended accordingly.
Explanation.-For the purposes of clause (b) of this sub-section, "asset" shall include immovable property, being land or building or both, shares and securities, loans and advances, deposits in bank account.
[(1A) Notwithstanding anything contained in sub-section (1), where the income chargeable to tax represented in the form of an asset or expenditure in relation to an event or occasion of the value referred to in clause (b) of sub-section (1), has escaped the assessment and the investment in such asset or expenditure in relation to such event or occasion has been made or incurred, in more than one previous years relevant to the assessment years within the period referred to in clause (b) of sub-section (1), a notice under section 148 shall be issued for every such assessment year for assessment, reassessment or recomputation, as the case may be.] (2) The provisions of sub-section (1) as to the issue of notice shall be subject to the provisions of section 151.] The first proviso to Section 149 of the Act provides that no notice under section 148 shall be issued at any point of time in a case for a relevant assessment year beginning on or before the 1st day of April 2021, if a notice under section 148 could not have been issued at that time on account of being beyond the time limit specified under the provision of clause (b) of sub-section (1) of this Section, as it stood immediately before the commencement of the Finance Act, 2021. The term 'at that time' in the first proviso refers to the date on which notice under section 148 is to be issued by the Assessing Officer. The term 'at that time' has to refer to the term 'at any time' used earlier in the said proviso. The reference to 'at any time' is to the date of the notice to be issued by the Assessing Officer and, therefore, the term 'at that time' would also refer to the said date. On the said date, if a notice could not have been issued under the erstwhile provision of Section 149(1)(b) of the Act, for any assessment year beginning on or before the 1st day of April 2021, the notice cannot be issued even under the new provisions.
25. Section 149(1)(b) of the erstwhile provisions provided a time limit of six years from the end of the relevant assessment year for issuing notice under section 148 of the Act. For the relevant assessment year, being Assessment Year 2015-2016, 6th year expired on 31st March 2022. The notice under section 148 of the Act, in the present case, is issued on 27th August 2022, i.e., clearly beyond the period of limitation prescribed in Section 149 read with the first proviso to the said section. This is squarely covered by paragraphs 36 and 37 of New India Assurance (supra) which has been reproduced above in paragraph 23.
26. The purpose of the first proviso to Section 149 of the Act is consistent with the stated object of the government to make prospective amendments in the Act. Accordingly, the proviso provides that up to Assessment Year 2021-2022 (period before the amendment), the period of limitation as prescribed in the erstwhile provisions of Section 149(1)(b) of the Act would be applicable and only from Assessment Year 2022-2023, the period of ten years as provided in Section 149(1)(b) of the Act, would be applicable. The (Downloaded on 11/08/2025 at 07:03:16 PM) [2025:RJ-JP:29991-DB] (9 of 22) [CW-10540/2024] submission of the Revenue to interpret the first proviso to Section 149 of the Act to be applicable only for Assessment Years 2013-2014 and 2014-2015, i.e., for assessment years where the period of limitation had already expired on 1st April 2021 is not sustainable. The interpretation canvassed by the Revenue is clearly contrary to the plain language of the proviso. When the language in the statute is clear, it has to be so interpreted and there is no scope for interpreting the provision on any other basis. The taxing statue should be strictly construed. [Godrej & Boyce Mfg. Co. Ltd. v. Dy. CIT [2017] 81 taxmann.com 111/247 Taxman 361/394 ITR 449 (SC).
27. The interpretation as canvassed by the Revenue would render the first proviso to Section 149 of the Act redundant and otiose. The time limit to issue notice under section 148 of the Act had already expired on 1st April 2021 for Assessment Year 2013-2014 and 2014-2015, when Section 149 of the Act was amended. Therefore, reopening for Assessment Years 2013-2014 and 2014-2015 had already been barred by limitation on 1st April 2021. Accordingly, the extended period of ten years as provided in Section 149(1)(b) of the Act would not have been applicable to Assessment Years 2013-2014 and 2014- 2015, de hors the proviso. It is a settled principle of law that when limitation has already expired, it cannot be revived by way of a subsequent amendment and, hence, for Assessment Years 2013-2014 and 2014-2015 proviso to Section 149 of the Act was not required. Hence, to give meaning to the proviso it has to be interpreted to be applicable for' Assessment Years upto 2021-2022. In CIT v. Onkarmal Meghraj (H.U.F.) [1974] 93 ITR 233 (SC), the Hon'ble Apex Court was dealing with the question whether a proviso could be applied without reference to any period of limitation. It held that "it is a well-settled principle that no action can be commenced where the period within which it can be commenced has expired. It is unnecessary to cite authorities in support of this position. Does the fact that the second proviso says that there is no period of limitation make a difference?"
The interpretation canvassed by the Revenue would render the following parts of the proviso redundant -
(i) 'at any time' in the first line of the proviso.
(ii) 'beginning on or before 1st day of April, 2021,' in the second line of the proviso.
(iii) 'at that time' in the fourth line of the proviso.
If we have to give effect to the interpretation suggested by the Revenue, then the proviso would have read as under :
"Provided that no notice under section 148 shall be issued at any time in a case for the relevant assessment year beginning on or before 1st day of April, 2021, if a notice under section 148 or Section 153A or Section 153C could not have been issued at that time [on 1st day of April, 2021] on account of being beyond the time limit specified under the provisions of clause (b) of sub- section (1) of this Section or Section 153A or Section 153C, as the case may be, as they stood immediately before the commencement of the Finance Act, 2021; OR Provided that no notice under section 148 shall be issued at any time in a case for the relevant assessment year beginning on or before 1st day of April, 2021, if a notice under section 148 or Section 153A or Section 153C could not have been issued at that time [on 1st day of April, 2021] on account of being beyond the time limit specified under the provisions of clause (b) of sub- section (1) of this Section or Section 153A or Section 153C, as the case may be, as they stood immediately before the commencement of the Finance Act, 2021".(Downloaded on 11/08/2025 at 07:03:16 PM)
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28. Section has to be interpreted so as to give meaning to all the words/phrases used in the Section and it should not be interpreted in such a way so as to render any part or phrase in the Section otiose. As stated aforesaid, if the interpretation canvassed by the Revenue is to be accepted then, not only various parts of the Section would be rendered otiose, one would have to also substitute one phrase with another phrase in the said Section, which is clearly not permissible in law. Reliance in this regard is placed on the decision of the Hon'ble Apex Court in the case of CIT v. Sham L. Chellaram [2015] 54 taxmann.com 348/373 ITR 292 (Bom.).
29. It was submitted on behalf of Revenue that the period of limitation for the purposes of Section 149 of the Act has to be seen with respect to the original notice under section 148 of the Act, which was issued to petitioner on 8th April 2021 and as the said notice was issued within the period of six years from the end of the relevant assessment year, which was expiring on 31st March 2022, the reassessment proceedings are within the period of limitation prescribed in Section 149 of the Act. It is not acceptable. Section 149 of the Act sets out, inter alia, the time limit for issuing notice under section 148 of the Act. Apart from the period of limitation set out in the said Section, the first proviso lays down a further restriction on the issue of a notice under section 148 of the Act. The period of limitation as well as the said further restriction is framed/provided in respect of a notice under 148 of the Act, and not for a notice under section 148A of the Act. The notice dated 8th April 2021, which though originally issued as a notice under section 148 of the Act, (under the provisions of the Act prior to the amendments made by the Finance Act, 2021), has now been treated as a notice issued under section 148A(b) of the Act in accordance with the decision of the Hon'ble Apex Court in Ashish Agarwal (supra). Once the notice dated 8th April 2021 has been treated as having been issued under section 148A(b) of the Act, the said notice is no longer relevant for the purpose of determining the period of limitation prescribed under section 149 or the restriction as per the first proviso below Section 149 of the Act. Therefore, for considering the restriction on issue of a notice under section 148 of the Act prescribed in the first proviso to Section 149 of the Act, the fresh/presently impugned notice dated 27th August 2022 issued under section 148 of the Act is required to be considered. The said notice is admittedly beyond the erstwhile period of limitation of six years prescribed by the Act prior to its amendment by the Finance Act, 2021. For the Assessment Year 2015-2016, the erstwhile time limit of six years expired on 31st March 2022 and, the impugned notice under section 148 of the Act has been issued on 27th August 2022 and, therefore, the impugned notice dated 27th August 2022 is barred by the restriction of the first proviso to Section 149 of the Act.
30. With respect to applicability of the fifth proviso and the sixth proviso to Section 149(1)(b) of the Act for extension of limitation for issuing the notice under section 148 of the Act, fifth and sixth provisos are only applicable with respect to the period of limitation prescribed in Section 149(1) of the Act, i.e., three years or ten years, as the case may be. Fifth proviso or sixth proviso extend limitation for issuing notice under section 149 of the Act, however, the first proviso is an exception to the period of limitation and provides for a restriction on the notices under section 148 being issued for Assessment Years upto 2021-22 beyond a certain date. Therefore, the way the Section would operate, is first to decide whether a notice issued under section 148 of the Act is within the period of limitation in terms of Section 149(1)(a) or (b) of the Act. To decide whether the notice is within the period of (Downloaded on 11/08/2025 at 07:03:16 PM) [2025:RJ-JP:29991-DB] (11 of 22) [CW-10540/2024] limitation under section 149(1)(a) or (b) of the Act, the extension of time as per the fifth and/or sixth proviso would be considered. Once, the notice is otherwise within the period of limitation, thereafter one has to see whether the said time limit is within the restriction provided in the first proviso or not. If the notice is beyond the restriction period, the notice is invalid. The fifth and/or the sixth proviso cannot apply at this stage to extend the period of restriction as per the first proviso. Hence, if a notice is not within the time prescribed under the first proviso to Section 149(1) of the Act, then such period cannot be extended by fifth proviso and sixth proviso. In Godrej Industries Ltd. (supra) paragraph 15 reads as under :
15. Based on petitioner's facts, the show cause notice under section 148A(b) of the Act was issued on 24th May 2022 asking petitioner to furnish a reply by 8th June 2022.
Petitioner filed a detailed reply in response to the show cause notice on 8th June 2022 and, therefore, only the period from 24th May 2022 to 8th June 2022 could be excluded by virtue of the first limb of the fifth proviso to Section 149 of the Act. Subsequently, petitioner received another letter dated 28th June 2022 which annexed certain details and provided further time for making detailed submissions upto 8th July 2022. Petitioner replied to the letter and made detailed submissions on 2nd July 2022. Therefore, even assuming this period is to be excluded, the period which could be excluded is only from 24 th May 2022 to 8th June 2022. Even after considering the letter dated 28th June 2022 and the reply dated 2nd July 2022, at the highest a further period from 28th June 2022 to 8th July 2022 could be excluded but the period of time from 8th June 2022 to 28th June 2022 cannot be excluded as per the fifth proviso. This is because petitioner on 8th June 2022 did not request for any further time and furnished its response to the show cause notice under section 148A(b) of the Act. It is the Assessing Officer who has suo moto issued another letter on 28th June 2022 asking petitioner to furnish further details by 8th July 2022. Therefore, even assuming a period of 27 days (i.e., 16 days from 24th May to 8th June and 11 days from 28th June to 8th July) are excluded from the date of the impugned notice under section 148 of the Act issued on 31st July 2022, the impugned notice would yet be barred by limitation and could not have been issued by virtue of the first proviso to Section 149 of the Act.
Even if the fifth and sixth provisos are held to be applicable, the impugned notice would still be beyond the period of limitation. The fifth proviso extends limitation with respect to the time or extended time allowed to an assessee as per the show cause notice issued under section 148A(b) of the Act or the period, during which the proceeding under section 148A of the Act are stayed by an order of injunction by any Court. Hence, in the present case, in view of the fifth proviso, the period to be excluded would be counted from 25th May 2022, i.e., the date on which the show cause notice was issued under section 148A(b) of the Act by respondent no. 1 subsequent to the decision of the Hon'ble Apex Court in the case of Ashish Agarwal (supra) and upto 10th June 2022, which is a period of 16 days. Further, the time period from 29th June 2022 upto 4th July 2022 cannot be excluded as the same was not based on any extension sought by petitioner, but at the behest of respondent no. 1. Even if the same was to (Downloaded on 11/08/2025 at 07:03:16 PM) [2025:RJ-JP:29991-DB] (12 of 22) [CW-10540/2024] be excluded, still it will mean further exclusion of 5 days. Considering the said excluded period as well, the impugned notice dated 27th August 2022 is still beyond limitation. The fact that the original notice dated 8th April, 2021 issued under section 148 of the Act, was stayed by this Court on 3rd August 2021, and its stay came to an end on 29th March 2022 on account of the decision of this Court, will not be relevant for providing extension as per the fifth proviso. The fifth proviso provides for extension for the period during which the proceeding under section 148A of the Act is stayed. The original stay granted by this Court was not with respect to the proceeding under section 148A of the Act, but with respect to the proceeding initiated as per the erstwhile provision of Section 148 of the Act and, hence, such stay would not extend the period of limitation as per the fifth proviso to Section 149 of the Act. The question of applicability of the sixth proviso does not arise on the facts of the present case. We find support for this in Godrej Industries Ltd. (supra).
In view of the aforesaid, the impugned notice dated 27th August 2022 is clearly barred by the law of limitation."
12. In this case, as it pertains to Assessment Year 2017-18, six years period would have expired on 31 st March 2024 whereas notice under Section 148 of the Act itself came to be issued on 1 st May 2024. Mr. Siddharth Bapna, counsel for Revenue, made an attempt to argue that fifth and sixth provisos to Section 149 (1)
(b) of the Act would save the period of limitation for issuing notice under Section 148 of the Act. We are afraid we do not agree with him. Same argument was raised in Hexaware Technologies Ltd. (supra) and was rejected. The Court held, with respect to applicability of fifth and sixth provisos to Section 149(1)(b) of the Act for extension of limitation for issuing notice under Section 148 of the Act, fifth and sixth provisos are only applicable with respect to the period of limitation prescribed under Section 149(1) of the Act, i.e., three years or ten years, as the case may be. The Court also held that fifth and sixth provisos extend limitation for issuing notice under Section 149 of the Act, however, first proviso is an exception to the period of limitation and provides for a restriction on the notices under Section 148 of the Act being issued for (Downloaded on 11/08/2025 at 07:03:16 PM) [2025:RJ-JP:29991-DB] (13 of 22) [CW-10540/2024] assessment years up to 2021-22 (in this case, it is Assessment Year 2017-18) beyond a certain date. Therefore, the way the section would operate, is to first decide whether a notice issued under Section 148 of the Act is within the period of limitation under Section 149(1)(a) or (b) of the Act. To decide whether the notice is within the period of limitation under Section 149(1)(a) or
(b) of the Act, the extension of time as prescribed in fifth and/or sixth proviso would be considered. The Court further held once, the notice is otherwise within the period of limitation, thereafter one has to see whether the said limit is within the prescribed restriction provided in first proviso or not. If the notice is beyond the restriction period, the notice is invalid, and the fifth and/or the sixth proviso cannot apply at this stage to extend the period of restriction as per first proviso. Hence, if a notice is not within the time prescribed under first proviso to Section 149(1) of the Act, then such period cannot be extended by fifth or sixth proviso. In Hexaware Technologies Ltd. (supra), the Court had relied upon another judgment of Bombay High Court in Godrej Industries Ltd. vs. Assistant Commissioner of Income Tax & Others 2, which was also authored by one of us (the Chief Justice), where Paragraph No. 15 reads as under:
"15. The validity of a notice must be judged on the basis of the law existing as on the date on which the notice is issued under s. 148 of the Act, which in the present case is 31st July, 2022, by which time the Finance Act, 2021 is already on the statute and in terms thereof, no notice under s. 148 of the Act for asst. yr. 2014-15 could be issued on or after 1st April, 2021 based on the first proviso to s. 149 of the Act. Therefore, the fifth proviso cannot apply in a case where the first proviso applies because, if a notice under s. 148 of the Act could not be issued beyond the time period provided in the first proviso, then the fifth proviso could not save such notices. The fifth proviso can only apply where one has to determine whether the time-limit of three years and ten years in s. 149(1) of the Act are breached."
2 (2024) 338 CTR (Bom) 25 (Downloaded on 11/08/2025 at 07:03:16 PM) [2025:RJ-JP:29991-DB] (14 of 22) [CW-10540/2024]
13. In fact, Mr. Pardiwala, Senior Advocate brought to notice of the Court that what has been quoted in Paragraph No. 30 in Hexaware Technologies Ltd. (supra) is actually Paragraph No. 12 in Godrej Industries Ltd. (supra) and correct quotation should have been Paragraph No. 15 which is quoted above.
14. In the circumstances, since the case at hand pertains to Assessment Year 2017-18, the law as laid down by High Court of Bombay will squarely apply and the notice issued under Section 148 of the Act on 1st May 2024 will be barred by limitation.
Issue 'B':
15. Admittedly notice under Section 148 of the Act was issued by JAO and not FAO. This issue also came up to be discussed and considered in Hexaware Technologies Ltd. (supra), where the Court in Paragraphs No. 32 to 39 held as under:
"32. As regards issue no. 4, Section 151A reads as under:
151A. Faceless assessment of income escaping assessment.--(1) The Central Government may make a scheme, by notification in the Official Gazette, for the purposes of assessment, reassessment or recomputation under section 147 or issuance of notice under section 148 [or conducting of enquiries or issuance of show-cause notice or passing of order under section 148A] or sanction for issue of such notice under section 151, so as to impart greater efficiency, transparency and accountability by--
(a) eliminating the interface between the income-tax authority and the assessee or any other person to the extent technologically feasible;
(b) optimising utilisation of the resources through economies of scale and functional specialisation;
(c) introducing a team-based assessment, reassessment, recomputation or issuance or sanction of notice with dynamic jurisdiction.
(2) The Central Government may, for the purpose of giving effect to the scheme made under sub-section (1), by notification in the Official Gazette, direct that any of the provisions of this Act shall not apply or shall apply with such exceptions, modifications and adaptations as may be specified in the notification:
Provided that no direction shall be issued after the 31st day of March, 2022.(Downloaded on 11/08/2025 at 07:03:16 PM)
[2025:RJ-JP:29991-DB] (15 of 22) [CW-10540/2024] (3) Every notification issued under sub-section (1) and sub-section (2) shall, as soon as may be after the notification is issued, be laid before each House of Parliament.
Section 151A of the Act gives the power to the Central Board of Direct Taxes ("CBDT") to notify the Scheme for:
(i) the purpose of assessment, reassessment or recomputation under section 147; or
(ii) issuance of notice under section 148; or
(iii) conducting of inquiry or issuance of show cause notice or passing of order under section 148A; or
(iv) sanction for issuance of notice under section 151;
so as to impart greater efficiency, transparency and accountability by inter alia eliminating the interface between the Income-tax Authorities and assessee. Sub-section 3 of Section 151A of the Act also provides that every notification issued under sub-section (1) and (2) of Section 151A of the Act shall be laid before each House of Parliament.
In exercise of the powers conferred by sub-sections (1) and (2) of Section 151A of the Act, CBDT issued a notification dated 29th March, 2022 [Notification No. 18/2022/F.No.370142/16/2022-TPL and formulated a Scheme. The Scheme provides that -
(a) the assessment, reassessment or recomputation under section 147 of the Act,
(b) and the issuance of notice under section 148 of the Act, shall be through automated allocation, in accordance with risk management strategy formulated by the Board as referred to in Section 148 of the Act for issuance of notice and in a faceless manner, to the extent provided in Section 144B of the Act with reference to making assessment or reassessment of total income or loss of assessee. The impugned notice dated 27th August, 2022 has been issued by respondent no. 1 (JAO) and not by the NFAC, which is not in accordance with the aforesaid Scheme.
33. The guideline dated 1st August 2022 relied upon by the Revenue is not applicable because these guidelines are internal guidelines as is clear from the endorsement on the first page of the guideline -
"Confidential For Departmental Circulation Only". The said guidelines are not issued under section 119 of the Act. Any such guideline issued by the CBDT is not binding on petitioner. Further the said guideline is also not binding on respondent no. 1 as they are contrary to the provisions of the Act and the Scheme framed under section 151A of the Act. The effect of a guideline came up for discussion in Sofitel Realty LLP v. ITO (TDS) [2023] 153 taxmann.com 496/294 Taxman 766/457 ITR 18 (Bom.) wherein this Court has held that the guidelines which are contrary to the provisions of the Act cannot be relied upon by the Revenue to reject an application for compounding filed by an assessee. The Court held that guidelines are subordinate to the principal Act or Rules, it cannot restrict or override the application of specific provisions enacted by legislature. The guidelines cannot travel beyond the scope of the powers conferred by the Act or the Rules.
The guidelines do not deal with or even refer to the Scheme dated 29th March 2022 framed by the Government under section 151A of the Act. Section 151A(3) of the Act provides that the Scheme so (Downloaded on 11/08/2025 at 07:03:16 PM) [2025:RJ-JP:29991-DB] (16 of 22) [CW-10540/2024] framed is required to be laid before each House of the Parliament. Therefore, the Scheme dated 29th March 2022 under section 151A of the Act, which has also been laid before the Parliament, would be binding on the Revenue and the guideline dated 1st August 2022 cannot supersede the Scheme and if it provides anything to the contrary to the said Scheme, then the same is required to be treated as invalid and bad in law.
34. As regards ITBA step-by-step Document No. 2 regarding issuance of notice under section 148 of the Act, relied upon by Revenue, an internal document cannot depart from the explicit statutory provisions of, or supersede the Scheme framed by the Government under section 151A of the Act which Scheme is also placed before both the Houses of Parliament as per Section 151A(3) of the Act. This is specially the case when the document does not even consider or even refer to the Scheme. Further the said document is clearly intended to be a manual/guide as to how to use the Income-tax Department's portal, and does not even claim to be a statement of the Revenue's position/stand on the issue in question. Our observations with respect to the guidelines dated 1st August 2022 relied upon by the Revenue will equally be applicable here.
35. Further, in our view, there is no question of concurrent jurisdiction of the JAO and the FAO for issuance of notice under section 148 of the Act or even for passing assessment or reassessment order. When specific jurisdiction has been assigned to either the JAO or the FAO in the Scheme dated 29th March, 2022, then it is to the exclusion of the other. To take any other view in the matter, would not only result in chaos but also render the whole faceless proceedings redundant. If the argument of Revenue is to be accepted, then even when notices are issued by the FAO, it would be open to an assessee to make submission before the JAO and vice versa, which is clearly not contemplated in the Act. Therefore, there is no question of concurrent jurisdiction of both FAO or the JAO with respect to the issuance of notice under section 148 of the Act. The Scheme dated 29th March 2022 in paragraph 3 clearly provides that the issuance of notice "shall be through automated allocation" which means that the same is mandatory and is required to be followed by the Department and does not give any discretion to the Department to choose whether to follow it or not. That automated allocation is defined in paragraph 2(b) of the Scheme to mean an algorithm for randomised allocation of cases by using suitable technological tools including artificial intelligence and machine learning with a view to optimise the use of resources. Therefore, it means that the case can be allocated randomly to any officer who would then have jurisdiction to issue the notice under section 148 of the Act. It is not the case of respondent no. 1 that respondent no. 1 was the random officer who had been allocated jurisdiction.
36. With respect to the arguments of the Revenue, i.e., the notification dated 29th March 2022 provides that the Scheme so framed is applicable only 'to the extent' provided in Section 144B of the Act and Section 144B of the Act does not refer to issuance of notice under section 148 of the Act and hence, the notice cannot be issued by the FAO as per the said Scheme, we express our view as follows:-
Section 151A of the Act itself contemplates formulation of Scheme for both assessment, reassessment or recomputation under section 147 as well as for issuance of notice under section 148 of the Act. Therefore, the Scheme framed by the CBDT, which covers both the aforesaid aspect of the provisions of Section 151A of the Act cannot be said to be applicable only for one aspect, i.e., proceedings post the issue of notice under section 148 of the Act being assessment, (Downloaded on 11/08/2025 at 07:03:16 PM) [2025:RJ-JP:29991-DB] (17 of 22) [CW-10540/2024] reassessment or recomputation under section 147 of the Act and inapplicable to the issuance of notice under section 148 of the Act. The Scheme is clearly applicable for issuance of notice under section 148 of the Act and accordingly, it is only the FAO which can issue the notice under section 148 of the Act and not the JAO. The argument advanced by respondent would render clause 3(b) of the Scheme otiose and to be ignored or contravened, as according to respondent, even though the Scheme specifically provides for issuance of notice under section 148 of the Act in a faceless manner, no notice is required to be issued under section 148 of the Act in a faceless manner. In such a situation, not only clause 3(b) but also the first two lines below clause 3(b) would be otiose, as it deals with the aspect of issuance of notice under section 148 of the Act. Respondents, being an authority subordinate to the CBDT, cannot argue that the Scheme framed by the CBDT, and which has been laid before both House of Parliament is partly otiose and inapplicable. The argument advanced by respondent expressly makes clause 3(b) otiose and impliedly makes the whole Scheme otiose. If clause 3(b) of the Scheme is not applicable, then only clause 3(a) of the Scheme remains. What is covered in clause 3(a) of the Scheme is already provided in Section 144B(1) of the Act, which Section provides for faceless assessment, and covers assessment, reassessment or recomputation under section 147 of the Act. Therefore, if Revenue's arguments are to be accepted, there is no purpose of framing a Scheme only for clause 3(a) which is in any event already covered under faceless assessment regime in Section 144B of the Act. The argument of respondent, therefore, renders the whole Scheme redundant. An argument which renders the whole Scheme otiose cannot be accepted as correct interpretation of the Scheme. The phrase "to the extent provided in Section 144B of the Act" in the Scheme is with reference to only making assessment or reassessment or total income or loss of assessee. Therefore, for the purposes of making assessment or reassessment, the provisions of Section 144B of the Act would be applicable as no such manner for reassessment is separately provided in the Scheme. For issuing notice, the term "to the extent provided in Section 144B of the Act" is not relevant. The Scheme provides that the notice under section 148 of the Act, shall be issued through automated allocation, in accordance with risk management strategy formulated by the Board as referred to in Section 148 of the Act and in a faceless manner.
Therefore, "to the extent provided in Section 144B of the Act" does not go with issuance of notice and is applicable only with reference to assessment or reassessment. The phrase "to the extent provided in Section 144B of the Act" would mean that the restriction provided in Section 144B of the Act, such as keeping the International Tax Jurisdiction or Central Circle Jurisdiction out of the ambit of Section 144B of the Act would also apply under the Scheme. Further the exceptions provided in sub-section (7) and (8) of Section 144B of the Act would also be applicable to the Scheme.
37. When an authority acts contrary to law, the said act of the Authority is required to be quashed and set aside as invalid and bad in law and the person seeking to quash such an action is not required to establish prejudice from the said Act. An act which is done by an authority contrary to the provisions of the statue, itself causes prejudice to assessee. All assessees are entitled to be assessed as per law and by following the procedure prescribed by law. Therefore, when the Income-tax Authority proposes to take action against an assessee without following the due process of law, the said action itself results in a prejudice to assessee. Therefore, there is no question of petitioner having to prove further prejudice before arguing the invalidity of the notice.
(Downloaded on 11/08/2025 at 07:03:16 PM)[2025:RJ-JP:29991-DB] (18 of 22) [CW-10540/2024]
38. With respect to the Office Memorandum dated 20th February 2023, the said Office Memorandum merely contains the comments of the Revenue issued with the approval of Member (L&S) CBDT and the said Office Memorandum is not in the nature of a guideline or instruction issued under section 119 of the Act so as to have any binding effect on the Revenue. Moreover, the arguments advanced by the Revenue on the said Office Memorandum dated 20th February 2023 is clearly contrary to the provisions of the Act as well as the Scheme dated 29th March 2022 and the same are dealt with as under -
(i) It is erroneously stated in paragraph 3 of the Office Memorandum that "The scheme clearly lays down that the issuance of notice under section 148 of the Act has to be through automation in accordance with the risk management strategy referred to in section 148 of the Act." The issuance of notice is not through automation but through "automated allocation". The term "automated allocation" is defined in clause 2(1)(b) of the said Scheme to mean random allocation of cases to Assessing Officers. Therefore, it is clear that the Assessing Officer are randomly selected to handle a case and it is not merely a case where notice is sought to be issued through automation.
(ii) It is further erroneously stated in paragraph 3 of the Office Memorandum that "To this end, as provided in the section 148 of the Act, the Directorate of Systems randomly selects a number of cases based on the criteria of Risk Management Strategy." The term 'randomly' is further used at numerous other places in the Office Memorandum with respect to selection of cases for consideration/issuance of notice under section 148 of the Act. Respondent is clearly incorrect in its understanding of the said Scheme as the reference to random in the said Scheme is reference to selection of Assessing Officer at random and not selection of Section 148 cases as random. If the cases for issuance of notice under section 148 of the Act are selected based on criteria of the risk management strategy, then, obviously, the same are not randomly selected. The term 'randomly' by definition mean something which is chosen by chance rather than according to a plan. Therefore, if the cases are chosen based on risk management strategy, they certainly cannot be said to be random. The Computer/System cannot select cases on random but selection can be based on certain well- defined criteria. Hence, the argument of respondents is clearly unsustainable. If the case of respondent is that the applicability of Section 148 of the Act is on random basis, then the provision of Section 148 itself would become contrary to Article 14 of the Constitution of India as being arbitrary and unreasonable. Randomly selecting cases for reopening without there being any basis or criteria would mean that the section is applied by the Revenue in an arbitrary and unreasonable manner. The word 'random' is used in clause 2(1)(b) of the said Scheme in the definition of "automated allocation". "Automated allocation" is defined in the said clause to mean "an algorithm for randomised allocation of cases....". The term 'random', in our view, has been used in the context of assigning the case to a random Assessing Officer, i.e., an Assessing Officer would be randomly chosen by the system to handle a particular case. The term 'random' is not used for selection of case for issuance of notice under section 148 as has been alleged by the Revenue in the Office Memorandum. Further, in (Downloaded on 11/08/2025 at 07:03:16 PM) [2025:RJ-JP:29991-DB] (19 of 22) [CW-10540/2024] paragraph 3.2 of the Office Memorandum, with respect to the reassessment proceedings, the reference to 'random allocation' has correctly been made as random allocation of cases to the Assessment Units by the National Faceless Assessment Centre. When random allocation is with reference to officer for reassessment then the same would equally apply for issuance of notice under section 148 of the Act.
(iii) The conclusion at the bottom of page 2 in paragraph 3 of the Office Memorandum that "Therefore, as provided in the scheme the notice under section 148 of the Act is issued on automated allocation of cases to the Assessing Officer based on the risk management criteria" is also factually incorrect and on the basis of incorrect interpretation of the Scheme. Clause 2(1)(b) of the Scheme defined 'automated allocation' to mean 'an algorithm for randomised allocation of cases by using suitable technological tools, including artificial intelligence and machine learning, with a view to optimise the use of resources'. The said definition does not provide that the automated allocation of case to the Assessing Officer is based on the risk management criteria. The reference to risk management criteria in clause 3 of the Scheme is to the effect that the notice under section 148 of the Act should be in accordance with the risk management strategy formulated by the board which is in accordance with Explanation 1 to Section 148 of the Act. In our view, the Revenue is misinterpreting the Scheme, perhaps to cover its deficiency of not following the Scheme for issuing notice under section 148 of the Act.
(iv) In paragraph 3.1 of the Office Memorandum, it is stated that the case is selected prior to issuance of notice are decided on the basis of an algorithm as per risk management strategy and are, therefore, randomly selected. It is further stated that these cases are 'flagged' to the JAO by the Directorate of Systems and the JAO does not have any control over the process. It is further stated that the JAO has no way of predicting or determining beforehand whether the case will be 'flagged' by the system. The contention of the Revenue is that only cases which are 'flagged' by the system as per the risk management strategy formulated by CBDT can be considered by the Assessing Officer for reopening, however, in clause (i) in the Explanation 1 to Section 148 of the Act, the term "flagged" has been deleted by the Finance Act, 2022, with effect from 1st April 2022. In any case, whether only cases which are flagged can be reopened or not is not relevant to decide the scope of the Scheme framed under section 151A of the Act, which required the notice under section 148 of the Act to be issued on the basis of random allocation and in a faceless manner.
(v) The Revenue has wrongly contended in paragraph 3.1 of the Office Memorandum that "Therefore, whether JAO or NFAC should issue such notice is decided by administration keeping in mind the end result of natural justice to the assessees as well as completion of required procedure in a reasonable time." In our opinion, there is no such power given to the administration under either Section 151A of the Act or under the said Scheme. The Scheme is clear and categorical that notice under section 148 of the Act shall be issued through automated allocation and in a faceless (Downloaded on 11/08/2025 at 07:03:16 PM) [2025:RJ-JP:29991-DB] (20 of 22) [CW-10540/2024] manner. Therefore, the argument of the Revenue is clearly contrary to the provisions of the Scheme.
(vi) In paragraph 3.3 of the Office Memorandum, it is again erroneously stated that "Here it is pertinent to note that the said notification does not state whether the notices to be issued by the NFAC or the Jurisdictional Assessing Officer ("JAO")...... It states that issuance of notice under section 148 of the Act shall be through automated allocation in accordance with the risk management strategy and that the assessment shall be in faceless manner to the extent provided in section 144B of the Act." The Scheme is categoric as stated aforesaid that the notice under section 148 of the Act shall be issued through automated allocation and in a faceless manner. The Scheme clearly provides that the notice under section 148 of the Act is required to be issued by NFAC and not the JAO. Further, unlike as canvassed by Revenue that only the assessment shall be in faceless manner, the Scheme is very clear that both the issuance of notice and assessment shall be in faceless manner.
(vii) In paragraph 5 of the Office Memorandum, a completely unsustainable and illogical submission has been made that Section 151A of the Act takes into account that procedures may be modified under the Act or laid out taking into account the technological feasibility at the time. Reading the said Scheme along with Section 151A of the Act makes it clear that neither the Section or the Scheme speak about the detailed specifics of the procedure to be followed therein. This argument of the Revenue is clearly contrary to the Scheme as the Scheme is very specific to provide, inter alia, that the issuance of notice under section 148 of the Act shall be through automated location and in a faceless manner. Therefore, the Scheme is mandatory and provides the specification as to how the notice has to be issued. Further the argument of the Revenue that Section 151A of the Act takes into account that the procedure may be modified under the Act is without appreciating that if the procedure is required to be modified then the same would require modification of the notified Scheme. It is not open to the Revenue to refuse to follow the Scheme as the Scheme is clearly mandatory and is required to be followed by all Assessing Officers.
(viii) The argument of the Revenue in paragraph 5.1 of the Office Memorandum that the Section and Scheme have left it to the administration to device and modify procedures with time while remaining confined to the principles laid down in the said Section and Scheme, is without appreciating that one of the main principles laid down in the Scheme is that the notice under section 148 of the Act is required to be issued through automated allocation and in a faceless manner. There is no leeway given on the said aspect and, therefore, there is no question of the administration to device and modify procedures with respect to the issuance of notice.
39. With reference to the decision of the Hon'ble Calcutta High Court in Triton Overseas (P.) Ltd. (supra), the Hon'ble Calcutta High Court has passed the order without considering the Scheme dated 29th March 2022 as the said Scheme is not referred to in the order. Therefore, the said judgment cannot be treated as a precedent or relied upon to decide the jurisdiction of the Assessing Officer to issue (Downloaded on 11/08/2025 at 07:03:16 PM) [2025:RJ-JP:29991-DB] (21 of 22) [CW-10540/2024] notice under section 148 of the Act. The Hon'ble Calcutta High Court has referred to an Office Memorandum dated 20th February 2023 being F No. 370153/7/2023 TPL which has been dealt with above. Therefore, no reliance can be placed on the said Office Memorandum to justify that the JAO has jurisdiction to issue notice under section 148 of the Act. Further the Hon'ble Telangana High Court in the case of Kankanala Ravindra Reddy v. ITO [2023] 156 taxmann.com 178/295 Taxman 652 (Telangana) has held that in view of the provisions of Section 151A of the Act read with the Scheme dated 29th March 2022 the notices issued by the JAOs are invalid and bad in law. We are also of the same view."
16. In fact, Mr. Bapna's submissions on this aspect were similar to the submissions made by the Revenue in Hexaware Technologies Ltd. (supra).
17. Therefore, on this ground also, we will have to hold that notice dated 1st May 2024 is invalid and bad in law being issued by JAO as the same was not in accordance with Section 151A of the Act.
18. We should also note that the decision in Hexaware Technologies Ltd. (supra) has been followed by Division Bench of this Court in the case of Sharda Devi Chhajer Vs. The Income Tax Officer & Another3.
19. In fact, Bombay High Court in the cases of Abhin Anilkumar Shah Vs. Income Tax Officer 4 as also Bmc Software India (P) Ltd. v. Deputy Commissioner of Income-tax5 has followed the decision in Hexaware Technologies Ltd. (supra) and held that notice under Section 148 of the Act issued by JAO and not FAO will not be in accordance with Section 151A of the Act and hence invalid.
20. In view of above, we do not think that at this stage, it is necessary to answer other points raised by petitioner and opposed by respondents. On two issues dealt with above, i.e., 3 2025 SCC OnLine Raj 3386 4 2024 SCC OnLine Bom 2835 5 [2024] 167 taxmann.com 39 (Bombay) (Downloaded on 11/08/2025 at 07:03:16 PM) [2025:RJ-JP:29991-DB] (22 of 22) [CW-10540/2024] limitation and issuance of notice by JAO itself being held against the Revenue, we, hereby, quash and set aside notice dated 1st May 2024. Order dated 1st May 2024 is also quashed and set aside.
21. At this stage, Mr. Siddharth Bapna, counsel states that judgment of the Bombay High in Hexaware Technologies Ltd.
(supra) is challenged by Revenue before the Hon'ble Apex Court and notice has been issued. Mr. Siddharth Bapna states that if the Hon'ble Apex Court sets aside the law as laid down in Hexaware Technologies Ltd. (supra), Revenue should be allowed to revive the notice. Certainly, Revenue can make that request to the Hon'ble Apex Court.
22. Petition allowed.
(ANAND SHARMA),J (K.R. SHRIRAM),CJ
MANOJ NARWANI-DAKSH /1(F)
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