Validity of reopening of assessment and faceless assessment notice issuance: notice must be issued by faceless AO/JAO; statutory procedure required

Validity of reopening focused on whether a faceless assessing officer or its joint authority must issue the show cause notice initiating reassessment; the court reasoned that assessment proceedings commence on issuance of the show cause notice and that issuance by the jurisdictional assessing officer would defeat the faceless assessment scheme, directing that notices follow the statutory faceless procedure. The court rejected departmental circulars or letters as overruling statutory mandates, holding that administrative instructions cannot displace the statutory scheme set out in the enabling provisions and notification, and granted liberty to revenue to proceed under the correct procedure.

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Issues: Whether notices dated 22.03.2025 under Section 151 and 24.03.2025 under Section 148 of the Income-tax Act, 1961 issued by the jurisdictional assessing authority are without jurisdiction in view of Notification dated 29.03.2022 and whether such notices and subsequent proceedings should be set aside.

Analysis: The Court considered the scheme of faceless assessment as reflected in Section 151A and Section 144B of the Income-tax Act, 1961 and the Notification dated 29.03.2022, which applies the faceless assessment regime from the stage of issuance of show cause notice under Section 148. The Court relied on earlier coordinate-bench decisions in Jatinder Singh Bhangu and Jasjit Singh where identical issues were examined and those writ petitions were allowed; the coordinate-bench reasoning held that statutory notification and provisions govern the competence to issue Section 148 notices and that office memoranda or departmental instructions cannot override statutory mandate. Applying that reasoning to the present facts, the impugned notices issued by the jurisdictional assessing authority fall foul of the statutory scheme and the Notification.

Conclusion: The notices under Sections 151 and 148 and consequent proceedings are set aside; decision is in favour of the assessee.

Ratio Decidendi: Where a statutory notification and provisions (Sections 151A and 144B read with Notification dated 29.03.2022) vest exclusive competence in the faceless assessment mechanism to issue show cause notices under Section 148, administrative circulars or office memoranda cannot validate issuance of such notices by the jurisdictional assessing officer.

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