Navasakthi Townships Developers Private Limited Vs ACIT (ITAT Chennai)
148 Notice by JAO After Faceless Notification = Void Ab Initio, Rules Chennai ITAT
Chennai ITAT ‘B’ Bench in Navasakthi Townships Developers Pvt Ltd vs ACIT, Circle-1, Cuddalore (ITA No.2921/Chny/2025, AY 2015-16, order dated 23-12-2025) held that reassessment proceedings initiated by the Jurisdictional Assessing Officer (JAO) after 29-03-2022 are invalid, as they violate the mandatory faceless reassessment framework prescribed u/s 151A pursuant to CBDT Notification dated 29-03-2022.
Assessee-company had not filed ROI for AY 2015-16. Based on information regarding sale of immovable property of ₹1.58 crore and TDS payments of ₹30 lakh, notice u/s 148 was issued on 30-03-2022 by ITO, Circle-1, Cuddalore. Assessment was completed ex-parte u/s 147 r.w.s. 144 & 144B treating entire sale consideration as short-term capital gains and estimating 10% of contract payments as business income. CIT(A), NFAC confirmed the additions.
Before ITAT, Assessee challenged the very jurisdiction of reopening, contending that once the e-Assessment of Income Escaping Assessment Scheme, 2022 came into force on 29-03-2022, all notices u/s 148 and orders u/s 148A(d) must be issued only through the Faceless Assessment Officer (FAO), and not by the JAO.
Tribunal accepted the contention, holding that though order u/s 148A(d) was dated 27-03-2022, the crucial notice u/s 148 was issued on 30-03-2022, i.e., after the faceless scheme came into force, and hence the scheme squarely applied. Issuance of notice by JAO was held to be contrary to section 151A and the faceless scheme, vitiating the entire reassessment.
ITAT relied on Hexaware Technologies Ltd (Bom HC), Kankanala Ravindra Reddy (Telangana HC), TVS Credit Services Ltd (Madras HC – DB) and noted dismissal of Revenue SLP in Deepanjan Roy by Supreme Court, while clarifying that such dismissal does not amount to declaration of law under Article 141. Following consistent judicial view, ITAT quashed notice u/s 148 and all consequential orders, without entering into merits of additions, while keeping liberty open for Revenue to revive proceedings if Apex Court takes a contrary view in Hexaware.
Bottom line: For notices issued on or after 29-03-2022, JAO-driven reassessment is jurisdictionally fatal—faceless mechanism is compulsory, not a procedural nicety
FULL TEXT OF THE ORDER OF ITAT CHENNAI
This appeal by the assessee is arising out of the order dated 28.08.2025, passed by the Commissioner of Income Tax (Appeal), NFAC, Delhi (in short “ld.CIT(A)”) for the assessment year (A.Y) 2015-16 against the order u/s.147 r.w.s 144 r.w.s 144B of the Income Tax Act, 1961 (hereinafter the ‘Act’) passed by the Assessment Unit, Income Tax Department dated 14.03.2023.
