Faceless reassessment procedure: jurisdictional AO notices issued contrary to mandatory notification are void and reassessment quashed.

Whether a notice under section 148 issued by the jurisdictional AO after CBDT Notification mandating faceless reassessment is valid: the tribunal applied the principle that statutory and regulatory mandates for faceless issuance and conduct of reassessment are mandatory, followed coordinate-bench and High Court precedents finding jurisdictional AO notices issued post-notification contrary to the prescribed faceless procedure, and concluded the jurisdictional notice was without jurisdiction and the reassessment proceedings and order were quashed in favour of the assessee.

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Issues: Whether the notice issued under section 148 of the Income-tax Act, 1961 by the jurisdictional Assessing Officer on 30/03/2023 is valid where CBDT Notification dated 29/03/2022 and section 144B require issuance of notices and conduct of reassessment proceedings by the Faceless Assessment Unit.

Analysis: The Court examined the sequence of events and the applicable statutory and regulatory framework, specifically Section 148, Section 144B and Section 151A of the Income-tax Act, 1961 and CBDT Notification No. 18/2022 dated 29/03/2022 mandating faceless issuance and conduct of reassessment proceedings. The Court considered coordinate-bench decisions and the Punjab & Haryana High Court rulings holding that notices issued by the jurisdictional AO after the notification are contrary to the mandatory faceless procedure and therefore without jurisdiction. The Revenue did not place any material distinguishing this case from those precedents and there was no stay of the High Court decisions by the Supreme Court.

Conclusion: The notice under section 148 issued by the jurisdictional Assessing Officer on 30/03/2023 is without jurisdiction and void; the reassessment proceedings and order are quashed. The appeal is allowed in favour of the assessee.

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