Pyrotech Workspace Solutions Pvt. Ltd. Vs DCIT (Rajasthan High Court)
Only FAO Can Issue Reassessment Notices – Rajasthan HC Quashes JAO-Issued Sec. 148 & 148A Notices
The Rajasthan High Court at Jodhpur has once again reiterated that reassessment notices issued by the Jurisdictional Assessing Officer (JAO) instead of the Faceless Assessing Officer (FAO) are without jurisdiction & liable to be quashed.
Petitioner challenged the validity of Sec.148/148A notices & consequential assessment order issued by JAO. It was argued that the controversy already stood settled by the Division Bench in Sharda Devi Chhajer Vs. ITO (CW-11787/2024, decided on 19.03.2025) wherein the Court had carried out an elaborate study of the faceless regime introduced through CBDT Notification dated 29.03.2022, read with Sec.144B & Sec.151A of the Act.
The earlier decision in Sharda Devi Chhajer had held that the faceless scheme was intended to eliminate parallel jurisdiction, ensure automated allocation of cases through AI-based risk management, & vest exclusive jurisdiction with FAO for reassessment. It was categorically held that JAO cannot issue notices u/s 148 or 148A, as such an interpretation would render the faceless scheme redundant & contrary to legislative intent.
In the present case, the Bench accepted the petitioner’s contention that the issue was squarely covered. Accordingly, the Court:
- Quashed & set aside the impugned Sec.148/148A notices & assessment order issued by JAO.
- Directed that any fresh notices, if required, must emanate only from FAO in terms of CBDT Notification dated 29.03.2022.
- Clarified that the time spent in litigation shall be excluded while computing limitation for issuing such fresh notices.
- Left both parties free to raise their respective issues before the competent Assessing Authority.
This ruling aligns with the Court’s consistent approach in Gaze Fashion Trade Ltd. Vs. ACIT (CW-5738/2025, order dated 12.08.2025) & Paras Ram Vs. PCIT-1, Jodhpur (CW-15789/2025, order dated 27.08.2025), where similar Sec.148 notices issued by JAO were struck down.
