Wellcare International Hospital & Research Institute Pvt. Ltd. Vs ITO (ITAT Chennai)
Reopening Quashed: Section 148 Notice by Jurisdictional AO Invalid Post Faceless Scheme
The Chennai Bench of the ITAT, in Wellcare International Hospital & Research Institute Pvt. Ltd. v. ITO (AY 2018-19), held that a reassessment initiated through a section 148 notice issued by the Jurisdictional Assessing Officer (JAO) after notification of the Faceless Scheme dated 29.03.2022 is invalid and bad in law.
The Tribunal noted that, pursuant to section 151A and the “E-Assessment of Income Escaping Assessment Scheme, 2022”, issuance of notices under sections 148A and 148 must mandatorily follow the faceless mechanism. Since the impugned notice dated 06.04.2022 was issued by the JAO and not through NFAC, the very foundation of reopening was vitiated.
Relying on the jurisdictional Madras High Court (Division Bench) decision in Mark Studio India (P.) Ltd. and concurring High Court rulings including Hexaware Technologies Ltd. (Bom HC), the Tribunal held the issue to be no longer res integra. Consequently, the reassessment order was declared null and void, without examining the merits of additions. The assessee’s appeal was allowed, subject to liberty reserved for the Revenue in the event of a contrary Supreme Court ruling.
FULL TEXT OF THE ORDER OF ITAT CHENNAI
