Faceless procedure requirement: jurisdictional assessment notices quashed for non-faceless issuance, relief subject to SLP outcome.

Notices issued under Section 148A and Section 148 and consequent assessments under Section 147 were held procedurally invalid because they were not initiated in the faceless manner required by post-2020 amendments and related notification; therefore those jurisdictional notices and resultant assessment orders are quashed on jurisdictional grounds. The court recognised the Revenue's reserved liberty to re-initiate proceedings in compliance with the amended faceless scheme and made relief subject to the outcome of pending Special Leave Petitions, permitting either party to seek revival in accordance with the Supreme Court's decision.

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Issues: Whether notices issued under Section 148A and Section 148 of the Income-tax Act, 1961 by the jurisdictional Assessing Officer, and consequential proceedings and orders, are liable to be quashed on the ground that such notices and proceedings were not issued and conducted in a faceless manner contrary to the amendments effected by the Finance Act, 2020 and Finance Act, 2021 and related notifications.

Analysis: The petition challenges issuance of notices under Section 148A and Section 148 of the Income-tax Act, 1961 and consequent assessment orders under Section 147 on the ground that, following amendments by the Finance Act, 2020 and Finance Act, 2021 and Notification No. 18/2022 dated 29.03.2022, such proceedings ought to have been conducted in a faceless manner and notices issued accordingly. The issue has been substantively considered and decided by this High Court in a prior decision and has been followed by several other High Courts. The court examined the continued initiation of identical proceedings by jurisdictional Assessing Officers despite those decisions and the absence of any interim stay from the Supreme Court in pending SLPs. The court balanced the protection previously afforded to the Revenue (a reserved liberty to re-initiate proceedings in a faceless manner in accordance with the amended provisions) against the assessee's right not to be subjected to procedurally invalid notices, and noted the administrative practice of issuing jurisdictional notices contrary to the established judicial position and relevant statutory amendments and notification.

Conclusion: The writ petition is allowed on the jurisdictional ground. The impugned notices issued under Section 148A and Section 148 of the Income-tax Act, 1961 are set aside/quashed. Consequential orders and assessment orders under Section 147 of the Income-tax Act, 1961 arising from those notices also stand set aside/quashed. The allowance is subject to the outcome of the pending Special Leave Petitions before the Supreme Court; either party may seek revival of the petition in accordance with the Supreme Court's decision. There shall be no order as to costs and pending miscellaneous petitions, if any, stand closed.

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