Validity of reopening of assessment over faceless assessment notice issued by wrong officer leads to quashing and relief to taxpayer

Validity of reopening was decided by reference to whether a notice under section 148 required issuance by the Faceless Assessing Officer (FAO) per the Central Government notification of 29-03-2022; the notice here was issued by the Jurisdictional Assessing Officer (JAO), which the tribunal found invalid and vitiated the assessment proceedings. The tribunal applied the High Court precedent and quashed notices issued by the JAO, holding that noncompliance with the faceless assessment issuance requirement defeats additions sought under the reassessment process; appeal allowed in favour of the assessee.

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Issues: Whether the notice issued under Section 148 on 06-04-2022 by the Jurisdictional Assessing Officer (JAO), instead of a Faceless Assessing Officer (FAO) as required by Section 151A and Notification No. 18/2022 (CBDT), is valid or is liable to be quashed.

Analysis: The tribunal examined the statutory scheme under Section 151A and the Central Government notification dated 29-03-2022 which makes the faceless assessment procedure applicable from the stage of show-cause notice under Section 148 and 148A. The notice in the present case was issued by the Jurisdictional Assessing Officer on 06-04-2022 contrary to the notification's requirement that such notice be issued by FAO. The tribunal followed the precedents of the Hon'ble High Court of Punjab & Haryana and other High Courts holding that issuance of notice under Section 148 by JAO, instead of FAO as mandated, vitiates the assessment proceedings.

Conclusion: The notice issued under Section 148 on 06-04-2022 by the Jurisdictional Assessing Officer is quashed and the impugned assessment order is set aside; the assessee's appeal is allowed.

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