Inder Dev Gupta Vs ACIT (Delhi High Court)
Delhi HC Order on Validity of Reassessment Notices under Section 148: Whether Jurisdiction Lies with JAO or FAO
Brief Facts:
1. Background of Dispute
The petitioners challenged reassessment notices issued under Section 148 of the Income-tax Act, 1961, on the ground that such notices were issued by the Jurisdictional Assessing Officer (JAO), whereas post-notification of the faceless assessment framework, only the Faceless Assessing Officer (FAO) under the National Faceless Assessment Centre (NFAC) was competent to issue such notices.
This challenge relied upon the mandate introduced through:
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Section 151A (inserted vide Finance Act, 2022), and
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The E-Assessment of Income Escaping Assessment Scheme, 2022, notified under S.O. 1466(E) dated 29.03.2022.
2. Petitioners’ Submissions
The petitioners contended that reassessment proceedings post-2022 must be conducted exclusively in a faceless manner, and thus the jurisdiction of the physical JAO stands extinguished.
To substantiate, reliance was placed upon a series of High Court decisions holding that JAO-issued notices are void:
Bombay High Court
Telangana High Court
