Reopening notice validity: notices issued by local Assessing Officers after the faceless-notice mandate are invalid and quashed.

The note addresses invalidity of a notice under Section 148 issued on 30.03.2022 by the jurisdictional Assessing Officer contrary to the finance ministry notification dated 29.03.2022 requiring issuance by the faceless assessment unit; the dominant legal point is procedural compliance with the post notification faceless issuance requirement and its effect on reassessment. Applying binding High Court precedent holding such post notification notices non conforming, the reassessment proceedings were treated as procedurally defective and the assessment order quashed in favour of the assessee.

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Issues: Whether the reassessment proceedings and the assessment order passed for assessment year 2018-19 are invalid and liable to be quashed on the ground that the notice under Section 148 of the Income-tax Act, 1961 was issued by the jurisdictional Assessing Officer instead of the faceless assessment unit after the Finance Ministry notification dated 29.03.2022.

Analysis: The relevant legal framework comprises Section 148 of the Income-tax Act, 1961 governing issuance of notice for reopening of assessment and the finance ministry notification dated 29.03.2022 providing for issuance of such notices by the faceless assessment unit. The issue was examined in multiple judicial decisions of the jurisdictional High Court which held that notices issued by the jurisdictional Assessing Officer after the notification of 29.03.2022 are not in conformity with the prescribed procedure. The proceedings below record that the notice under Section 148 was issued on 30.03.2022, one day after the said notification, and that the notice was issued by the jurisdictional Assessing Officer rather than the faceless assessment unit. On account of these facts and in respectful conformity with the binding High Court decision addressing identical legal questions, the reassessment proceedings were treated as procedurally defective.

Conclusion: The notice under Section 148 issued by the jurisdictional Assessing Officer is invalid and the reassessment and assessment order are quashed; conclusion is in favour of the assessee.

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