Mala Petrochemicals and Polymers Vs ITO (Delhi High Court)
The Delhi High Court in Mala Petrochemicals and Polymers vs. ITO addressed two writ petitions challenging notices issued under Sections 148 and 148A of the Income Tax Act, 1961 (the Act) for the Assessment Year (AY) 2019-20. The petitions sought quashing of notices dated 12.06.2025 and 27.03.2025, claiming that the Jurisdictional Assessing Officer (JAO) lacked authority to issue these notices, which should have been issued by the Faceless Assessment Officer (FAO) under the Central Board of Direct Taxes (CBDT) faceless assessment scheme. The petitions also requested interim stays of the reassessment proceedings and exemption from filing certified annexures.
The High Court noted that the question of whether JAO or FAO can issue Section 148 notices is no longer res integra. In TKS Builders Pvt. Ltd. vs. Income Tax Officer, Ward 25(3), the Court held that both JAO and FAO have concurrent jurisdiction to issue notices under Section 148. The petitioners also cited the Bombay High Court decision in Hexaware Technologies Ltd. vs. ACIT, which had been distinguished by the Delhi High Court in TKS Builders and was under appeal before the Supreme Court, along with other pending High Court judgments from Telangana, Madras, Gujarat, and Punjab and Haryana addressing identical issues.
