Jurisdiction to initiate proceedings under Sections 148A and 148 post Faceless Scheme; notices issued by JAO set aside.

Initiation of assessment proceedings under Sections 148A and 148 by the jurisdictional assessing officer after implementation of the faceless assessment scheme is found to be without jurisdiction; the notices and the procedures adopted are illegal and are set aside. Consequently, orders passed pursuant to those notices are quashed, while the revenue is left free to take further action within the limits indicated by the court. The decision relies on prior precedent holding similar post-scheme JAO actions unsustainable.

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Issues: Whether proceedings initiated under Section 148A followed by notice under Section 148 of the Income-tax Act, 1961 by the Jurisdictional Assessing Officer (JAO) after 29.03.2022 (post implementation of the Faceless Assessment Scheme) are valid or are without jurisdiction and liable to be quashed.

Analysis: The issue centres on the interaction between the Faceless Assessment Scheme (effective from 29.03.2022) and the statutory provisions governing reopening of assessment (notably Sections 148A and 148). The Court relied upon and followed prior reasoned decisions holding that, after implementation of the Faceless Scheme and the e-Assessment mechanism under the e-Assessment of Income Escaping Assessment Scheme, 2002, initiation of proceedings by the JAO in place of the Faceless Assessing Officer is inconsistent with the Scheme and results in lack of jurisdiction. The Court noted that multiple coordinate High Court decisions have applied this legal framework and that the present matters fall within that settled view. The Court also recorded that the revenue retains liberty to proceed in accordance with the limited protection previously recognised where applicable and subject to the outcome of pending SLPs before the Supreme Court.

Conclusion: The initiation of proceedings under Sections 148A and 148 by the Jurisdictional Assessing Officer after 29.03.2022 is without jurisdiction and the impugned proceedings and consequential orders are set aside/quashed in favour of the assessee.

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