Ashok Sahu Vs ITO (ITAT Agra)
ITAT Agra Quashes Reassessment Notices Issued by Jurisdictional AO Post Faceless Scheme; Proceedings Held Void ab initio
The Agra Bench of the ITAT allowed the assessees’ appeals and quashed the entire reassessment proceedings for AY 2018-19 on the ground of lack of jurisdiction. The Tribunal held that notices issued under sections 148A(b), 148A(d), and 148 dated 31.03.2022 by the Jurisdictional Assessing Officer (JAO) were invalid, as they were issued after the CBDT’s Faceless Income Escaping Assessment Scheme, 2022, notified on 29.03.2022 under section 151A of the Act.
Relying extensively on the binding precedents of the Bombay High Court in Hexaware Technologies Ltd. (464 ITR 430) and the Madras High Court (Division Bench) in Mark Studio India (P.) Ltd., the Tribunal held that once the faceless scheme became operative, only the Faceless Assessing Officer (FAO) had jurisdiction to issue reassessment notices. The concept of “concurrent jurisdiction” between JAO and FAO was expressly rejected.
The Tribunal observed that issuance of notices by an authority not empowered under the statutory scheme itself causes prejudice and violates the rule of law, making it unnecessary for the assessee to demonstrate further prejudice. Consequently, the reassessment orders framed pursuant to such invalid notices were declared null and void, and the Tribunal refrained from examining the merits of the additions. Both appeals were allowed, leaving other grounds open.
FULL TEXT OF THE ORDER OF ITAT AGRA
