Kalpesh Ravjibhai Sojitra Vs ITO (ITAT Rajkot)
JAO Cannot Issue Reassessment Notices After Faceless Scheme — ITAT Rajkot Quashes Entire Reassessment
The Rajkot Bench of the ITAT quashed the reassessment proceedings for AY 2017-18, holding that the notices issued under sections 148A(b), 148A(d) and 148 by the Jurisdictional Assessing Officer (JAO) were void ab initio, as they were not issued through the mandatory faceless mechanism prescribed under section 151A read with section 144B and the Faceless Reassessment Scheme, 2022.
Key findings of the Tribunal:
- Faceless regime is mandatory: Once the E-Assessment of Income Escaping Assessment Scheme, 2022 was notified (29-03-2022), reassessment proceedings must be conducted only through automated, faceless allocation. The JAO has no concurrent or residual jurisdiction.
- JAO’s notices invalid: Notices issued manually by the JAO after the faceless scheme came into force are without authority of law and vitiate the entire reassessment.
- Jurisdictional defect not curable: Jurisdictional infirmities go to the root of the matter and cannot be cured by section 292B or by arguing absence of prejudice.
- Binding judicial precedents followed: The Tribunal relied on a catena of decisions including Hexaware Technologies (Bom HC), Kankanala Ravindra Reddy (Telangana HC), Kishan Kumar Thotakura (AP HC), Sri Venkataramana Reddy Patloola (Telangana HC), and affirmed by the Supreme Court’s dismissal of SLP in Prakash Pandurang Patil.
- Merits rendered academic: Since the reassessment itself was quashed for lack of jurisdiction, the addition of ₹90.39 lakh u/s 68 relating to cash deposits during demonetisation was not examined on merits.
Accordingly, the ITAT set aside the CIT(A)’s order and quashed the reassessment in entirety, holding that when the statute prescribes a particular manner, it must be followed and no other course is permissible.
FULL TEXT OF THE ORDER OF ITAT RAJKOT
