Reassessment notice u/ss148/148A quashed for invalid s.151 approval and breach of faceless scheme s.151A

HC allowed the assessee's writ petition challenging reopening of assessment under ss.148/148A for want of valid approval under s.151 and non-compliance with the faceless reassessment scheme under s.151A. Relying on its earlier co-ordinate Bench decisions on identical issues, HC held that the faceless regime applies from the stage of issuance of show-cause notice under ss.148/148A and that jurisdictional officers cannot bypass this statutory framework. Consequently, the impugned notice and consequential proceedings were quashed, while granting liberty to the revenue to initiate fresh reassessment proceedings strictly in accordance with the procedure prescribed under the Income-tax Act, 1961, if so advised.

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Petitioner challenged notices dated 31.03.2025 under Section 148A(1) and 17.06.2025 under Section 148 of the Income Tax Act, 1961 for AY 2019-20, contending lack of jurisdiction as, pursuant to CBDT notification dated 29.03.2022 issued under Section 151A, the National Faceless Assessment Centre (NFAC) has exclusive authority to issue such notices. Both sides accepted that the controversy is covered by earlier decisions in CWP No. 15745-2024 (Jatinder Singh Bhangu) and CWP No. 21509-2023 (Jasjit Singh). The Court relied on the co-ordinate Bench's holding that the faceless assessment scheme applies "from the stage of show cause notice under Section 148 as well as 148A," and that "the object of introduction of faceless assessment would be defeated if show cause notice under Section 148 is issued by Jurisdictional Assessing Officer." It reiterated that circulars, instructions, or office memoranda cannot override clear statutory provisions and the notification under Sections 144B and 151A. The petition was disposed of in the same terms, with liberty to the Revenue to proceed afresh as per law.

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