Mandatory section 143(2) notice in reassessment remains essential when a return is filed and acted upon; faceless-rule challenge failed.

A reassessment notice issued by the jurisdictional Assessing Officer before the CBDT faceless-procedure notification of 29.03.2022 was not invalidated merely because the faceless mechanism under section 151A was later introduced; that requirement was not yet operative on the date of notice. By contrast, where the assessee filed a return during reassessment proceedings and the return was relied on for framing the assessment, notice under section 143(2) remained mandatory. The complete absence of that notice created a jurisdictional defect, and section 292BB did not cure it. The reassessment was therefore quashed for want of section 143(2) notice.

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Issues: (i) whether notice under section 148 issued by the jurisdictional Assessing Officer before the CBDT notification dated 29.03.2022 could be invalidated for want of faceless procedure under section 151A of the Income-tax Act, 1961; and (ii) whether reassessment could be sustained without issuing notice under section 143(2) where the assessee filed a return during the reassessment proceedings and the return was acted upon in assessment.

Issue (i): whether notice under section 148 issued by the jurisdictional Assessing Officer before the CBDT notification dated 29.03.2022 could be invalidated for want of faceless procedure under section 151A of the Income-tax Act, 1961.

Analysis: Section 151A and the faceless scheme notification came into force only from 29.03.2022. The notice under section 148 in the present case had been issued on 26.03.2021, when the faceless mechanism was not yet mandatory for international tax cases. The challenge based on the later notification and the cited High Court decision therefore did not apply to the facts of this case.

Conclusion: The challenge to the reassessment notice on the ground of non-compliance with the faceless procedure was rejected.

Issue (ii): whether reassessment could be sustained without issuing notice under section 143(2) where the assessee filed a return during the reassessment proceedings and the return was acted upon in assessment.

Analysis: Notice under section 143(2) is required where a return is furnished and is taken into account for framing the assessment. The assessee furnished a return in response to notice under section 142(1), and the Assessing Officer relied on that return while determining the assessed income. In such circumstances, the omission to issue notice under section 143(2) created a jurisdictional defect. The deeming protection under section 292BB did not cure the complete absence of notice.

Conclusion: The reassessment was held invalid for want of notice under section 143(2), and the assessment was quashed on this ground.

Final Conclusion: The appeal succeeded only on the jurisdictional defect relating to absence of notice under section 143(2), while the challenge to the reassessment notice based on the faceless-assessment notification failed.

Ratio Decidendi: Where a return filed in reassessment proceedings is acted upon for making additions, issuance of notice under section 143(2) remains mandatory, and its complete absence vitiates the assessment; however, a reassessment notice issued before the faceless-notice scheme became operative cannot be invalidated on that ground.

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