Faceless assessment and jurisdiction: allocation to jurisdictional assessing officer and concurrent reassessment authority affirmed in faceless scheme

Validity of notices under reassessment provisions was addressed by confirming that issuance of notice for reassessment remains within the exclusive competence of the jurisdictional assessing officer, while assessment, reassessment or recomputation proceedings attract concurrent jurisdiction between the faceless assessment officer and the jurisdictional assessing officer; consequence: both may act in assessment proceedings. The Directorate of Income Tax (Systems) may allocate cases through an Automated Allocation System based on risk management to the jurisdictional assessing officer, who may issue digitally signed notices to the assessees registered account. Scheme provisions governing faceless procedure have both substantive and procedural effect, and central direction-making powers under separate statutory provisions operate independently of Board guidelines.

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Issues: Whether the notice issued under Section 148A(1)/Section 148 of the Income-tax Act, 1961 by way of the faceless scheme and automated allotment (including issuance without mentioning the name of the Jurisdictional Assessing Officer) is valid; and the respective roles and jurisdiction of the Jurisdictional Assessing Officer (JAO), Faceless Assessment Officer (FAO), Directorate of Income Tax (Systems) and NaFAC under the Scheme and relevant statutory provisions.

Analysis: The Headnote applies the statutory scheme and guidelines governing faceless assessments. The Scheme dated 29.03.2022 and related processes permit the Directorate of Income Tax (Systems) to allot eligible cases by Automated Allocation System based on the Board's risk management strategy to the Jurisdictional Assessing Officer (JAO) for issuance of notices under Section 148A/148. Issuance of the Section 148 notice in a faceless manner by the JAO through digital signing from the ITBA Portal is authorised; subsequent uploading of reply documents by the JAO and forwarding of cases by the Directorate of Income Tax (Systems) to NaFAC are part of the prescribed faceless process. Once NaFAC assumes jurisdiction after receipt of forwarded Section 148 case information, NaFAC may proceed under Section 144B and issue notices under Sections 143(2) or 142(1). The Board's guidelines issued under Section 144B(2) fall within the Board's power to specify classes or cases for faceless assessment and do not amount to prohibited directions under the proviso to Section 151A(2). Procedural lapses such as omission of the JAO's name in the faceless notice are curable and do not vitiate initiation of proceedings. The JAO must obtain prior approval as required by Section 151A where applicable, and upload relevant documents and replies to the ITBA Portal for further faceless processing.

Conclusion: The faceless issuance of the Section 148A(1)/Section 148 notice in the manner described is valid; procedural omission of the JAO's name is curable and does not invalidate the notice; roles and the sequence of jurisdictional assumption by the JAO, Directorate of Income Tax (Systems) and NaFAC are upheld.

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