Section 148 notices Issued by Jurisdictional AO Invalid After Section 151A: Telangana High Court

Kankanala Ravindra Reddy Vs ITO (Telangana High Court)

In a significant ruling, the Telangana High Court declared that notices issued under Section 148 of the Income Tax Act by the Jurisdictional Assessing Officer (JAO) are invalid after the introduction of Section 151A amendments. This decision carries implications for tax assessment procedures and the application of amended provisions.

Detailed Analysis

The crux of this case revolves around the amendments introduced by Section 151A of the Income Tax Act, which aimed to streamline the assessment and reassessment processes by promoting a faceless approach. The petitioners contended that, following these amendments, all notices issued under Section 148 should adhere to the newly mandated faceless procedure, as outlined in Section 144B and the Finance Act, 2021.

The petitioner’s argument hinged on the fact that the Central Board of Direct Taxes (CBDT) had issued a notification on March 29, 2022, introducing the “e-assessment of Income Escaping Assessment Scheme 2022.” This scheme emphasized automated allocation and a faceless approach for the issuance of notices under Section 148.

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