Sharmanji Yarns Pvt. Ltd. Vs ACIT (ITAT Chandigarh)
Chandigarh Tribunal delivered its order on 12-11-2025, arising out of reassessment framed u/s 147 r.w.s 144B. The core dispute related to the addition of alleged bogus purchases of Rs.29.69 Crores from four parties. CIT(A) had restricted the addition by estimating 9%. Both parties filed cross-appeals.
At the outset, the Ld. AR raised a pure legal ground contending that the very reopening is void since the notice u/s 148 dated 07-04-2022 was issued by the Jurisdictional Assessing Officer (JAO) instead of the Faceless Assessing Officer (FAO), contrary to the mandate of Sec.151A read with CBDT Notification No.18/2022 dated 29-03-2022, which requires that notices u/s 148 must be issued only by FAO. The notice on record (Page 11 PB) was issued by Shri Jatin Abbi, Circle-1, Ludhiana, who admittedly is the JAO. The Departmental Representatives could not controvert this position except stating that the issue is pending before the Supreme Court.
Tribunal noted that the factual position is undisputed & that the statutory scheme of faceless reassessment squarely applies from the stage of issuance of notice u/s 148. Relying on the binding judgment of the Punjab & Haryana High Court in Jatinder Singh Bhangu (165 Taxmann.com 115, dated 19-07-2024), subsequently followed in Om Satya Overseas (178 Taxmann.com 137, dated 29-08-2025), the Tribunal held that issuance of notice by JAO, instead of FAO, is contrary to Sec.151A & CBDT Notification, thus vitiating the entire reassessment. No contrary view or stay of the High Court decisions was shown by the Department.
