Vikram Brahmendra Satyajit Mulpuri Vs ITO (ITAT Visakhapatnam)
JAO Has No Role Post Faceless Regime: Visakhapatnam ITAT Quashes Reassessment Issued u/s 148 Outside s.151A & 144B Framework
Visakhapatnam ITAT quashed reassessment proceedings in Vikram Brahmendra Satyajit Mulpuri vs. ITO, Ward-3(1), Vijayawada (ITA No.534/Viz/2025, AY 2020-21, order dated 19.12.2025) on the jurisdictional ground of violation of faceless regime.
The Tribunal held that after the introduction of Section 151A and the E-Assessment of Income Escaping Assessment Scheme, 2022, only the Faceless Assessing Officer (FAO) is competent to initiate proceedings u/s 148A and issue notice u/s 148. In the present case, notices u/s 148A(b), 148A(d) and 148 were admittedly issued manually by the Jurisdictional AO (JAO), outside the mandatory faceless mechanism.
Rejecting Revenue’s objection based on Section 124(3) and reliance on Kalinga Institute of Industrial Technology (SC), the Tribunal clarified that Section 124 deals only with territorial jurisdiction and does not cure an inherent lack of jurisdiction. An order passed by an authority lacking statutory power is a nullity, and there can be no waiver or acquiescence in such cases.
Relying heavily on binding decisions of the Andhra Pradesh High Court in Kishan Kumar Thotakura and the Telangana High Court in Kankanala Ravindra Reddy, as well as approval of Hexaware Technologies line of cases by the Supreme Court, the Tribunal held that reassessment initiated by JAO is void ab initio. Consequently, the assessment order passed u/s 147 r.w.s. 144B was quashed, with other issues left open.
FULL TEXT OF THE ORDER OF ITAT VISAKHAPATNAM
