Reassessment u/s 147 quashed for non-faceless 148 notice, circulars cannot override ss.144B,151A statutory safeguards

HC allowed the writ petition, quashing the reassessment proceedings initiated u/s 147 on the ground that the show cause notice u/s 148 was issued by the Jurisdictional Assessing Officer instead of being processed under the faceless mechanism mandated by ss. 144B and 151A read with the notification dated 29.03.2022. The Court held that departmental circulars or office memoranda cannot override statutory provisions, and assessment proceedings commence from issuance of show cause notice u/s 148. Liberty was granted to the revenue to initiate proceedings afresh strictly in accordance with the procedure prescribed under the Act, if so advised.

---

---

The petition challenged a notice dated 18.03.2025 issued under Section 148 of the Income Tax Act, 1961 for AY 2021-22, on the ground that the issuing authority lacked jurisdiction in view of CBDT notification dated 29.03.2022, which vested exclusive power in the National Faceless Assessment Centre (NFAC) to issue notices under Section 148. The petitioner relied on earlier Punjab & Haryana High Court decisions in *Jatinder Singh Bhangu v. Union of India* and *Jasjit Singh v. Union of India*, where similar notices issued by Jurisdictional Assessing Officers were quashed. The revenue did not dispute that the issue was covered. The Court referred to the prior holding that, from a "perusal of Section 151A, it is quite evident that scheme of faceless assessment is applicable from the stage of show cause notice under Section 148 as well as 148A," and that "circulars, instructions and letters issued by Board or any other authority cannot override statutory provisions." Following those precedents, the writ petition was disposed of in the same terms, with liberty to the revenue to proceed afresh in accordance with the Act and the faceless assessment scheme.

---