Jurisdiction over reassessment notices under the NFAC regime was disputed, with prior coordinate bench rulings guiding disposal.

A challenge was raised to notice under Section 148 for assessment year 2016-17 on the ground that, under the CBDT circular/notification dated 29.03.2022, the NFAC had exclusive authority to issue such notice and the impugned action was therefore without jurisdiction. The text notes that the issue was said to be covered by earlier coordinate bench decisions and that the Revenue did not dispute that position. The petition was disposed of in line with those prior decisions, with the Revenue left free to act only in accordance with law if so advised.

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Issues: Whether the notice issued under Section 148 of the Income-tax Act, 1961 and the consequential actions for the assessment year 2016-2017 were sustainable when the issuing authority was alleged to lack jurisdiction in view of the CBDT circular/notification dated 29.03.2022.

Analysis: The writ petition was founded on the contention that, under the CBDT circular/notification dated 29.03.2022, the NFAC had exclusive power to issue notice under Section 148, and therefore the impugned notice issued by the concerned authority was without jurisdiction. The issue was stated to be covered by earlier coordinate bench decisions on the same question, and the Revenue did not dispute that position.

Conclusion: The challenge to the notice and consequential actions succeeded in principle, and the petition was disposed of in terms of the earlier coordinate bench decisions, leaving the Revenue to proceed only in accordance with law if so advised.

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