Smt. Vijaya Kanika Tirupati Vs ITO (ITAT Hyderabad)
Reassessment Notice by JAO Held Invalid as CBDT Faceless Scheme was Mandatory
Hyderabad Tribunal considered the legal ground challenging validity of notice issued u/s 148. Assessee submitted that both order u/s 148A(d) dated 23.03.2023 & notice u/s 148 issued on same date were passed by JAO, even though CBDT Notification No.18/2022 dated 29.03.2022 mandated that all reassessment proceedings & notices u/s 148 shall be issued only by FAO under the faceless regime. Tribunal noted that post-29.03.2022, JAO ceased to have authority to issue notice u/s 148. Since notices in present case were issued by JAO on 23.03.2023, they were contrary to the statutory scheme.
Tribunal relied on the binding decision of Hon’ble Telangana High Court in Kotha Kanthaiah (WP No.344/2025 dated 24.04.2025), which had followed multiple High Court decisions holding that notice u/s 148 issued by non-faceless authority after CBDT Notification is void. Revenue’s contention that SLP in Hexaware Technologies Ltd. is pending before Supreme Court was noted, but Tribunal observed that jurisdictional High Court judgment is binding. Therefore, notice u/s 148 & order u/s 148A(d) issued by JAO were held invalid & quashed. Tribunal granted liberty to parties to seek revival of appeal depending on eventual Supreme Court decision in Hexaware. As the legal ground was allowed, other issues were left open.
