Reassessment Notice Quashed: Time-barred Tax Notice Invalid Due to Non-Compliance with Faceless Assessment Protocol.

The HC quashed the notice issued under Section 148 of the Income Tax Act for reassessment of returns for the Assessment Year 2014-15, deeming it time-barred under Section 149. The notice, issued by the Jurisdictional Assessing Officer instead of the mandated Faceless Assessing Officer, was invalid. The Court relied on precedent and did not address other issues, disposing of the Petition without costs.

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Issues:
Challenge to notice under Section 148 of the Income Tax Act, 1961 for reassessment of returns filed for Assessment Year 2014-15. The proceedings are allegedly barred by limitation under Section 149 of the Act. Original notice issued by Jurisdictional Assessing Officer instead of Faceless Assessing Officer as required under Section 151A of the Act.

Analysis:
The Writ Petition challenges a notice dated 25th July, 2022, issued under Section 148 of the Income Tax Act for reassessment of returns filed for the Assessment Year 2014-15, contending that the proceedings are time-barred under Section 149 of the Act. The notice was issued one year and 116 days after the expiration of the limitation period stipulated under Section 149. The Petitioner seeks intervention under Article 226 of the Constitution of India, arguing that the proceedings are barred by limitation.

The Writ Petition also contests the legality of the original notice under Section 148, claiming that it was issued by the Jurisdictional Assessing Officer instead of the Faceless Assessing Officer as mandated by Section 151A of the Act. This challenge is based on a ruling by a Division Bench of the Court in a previous case. The Court notes that the matter is similar to a previous case, Godrej Industries Ltd. v. The Assistant Commissioner of Income Tax, where the issue of limitation was addressed. The Division Bench in Godrej held that the notice under Section 148 issued beyond the time period specified in the Act is barred by limitation.

The Court emphasizes that the validity of a notice under Section 148 must be determined based on the law in force at the time of issuance. In this case, the deadline for issuing notices for the relevant Assessment Year had already lapsed, rendering the notice in question as time-barred. Both parties confirm the factual position, leading the Court to quash the notice and all consequential actions, citing the ruling in Godrej.

Given the finding that the reassessment is barred by limitation under Section 149, the Court declines to address other issues raised in the Writ Petition. The Petition is disposed of accordingly, with no costs imposed.

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