Shankar Sangeetha Vs ITO (ITAT Chennai)
31.03.2022 JAO-Issued 148 Notice Invalid: Chennai ITAT Quashes Reassessment & Penalty
Assessee challenged reassessment solely on the legal ground that the 148 notice dated 31.03.2022 was issued by the Jurisdictional AO, even though CBDT Notification under Sec.151A dated 29.03.2022 mandated that all 148/148A notices must thereafter be issued only by the Faceless Assessment Unit. Tribunal examined the notice & relied on the table of High Court precedents, especially the Madras High Court Division Bench ruling in Mark Studio India (24.06.2025) which reversed the Single Bench & aligned with Bombay HC in Hexaware (464 ITR 430), holding JAO-issued notices after 29.03.2022 to be invalid. Tribunal also referred to Telangana, Punjab & Haryana, Gauhati & Gujarat HCs that concurred. Revenue’s reliance on Delhi/Calcutta HCs & earlier Single Bench was rejected since the jurisdictional Division Bench binds the Tribunal. Consequently, the 148 notice was held void, reopening for AY 2018-19 declared illegal, & reassessment order dated 15.03.2023 quashed. As penalty u/s 272A(1)(d) arose from the invalid reassessment, it also automatically failed.
Result: Both appeals allowed; 148 notice invalid; reassessment & penalty annulled.
FULL TEXT OF THE ORDER OF ITAT CHENNAI
These are appeals preferred by the assessee against the orders of the Learned Commissioner of Income Tax (Appeals)/NFAC, (hereinafter referred to as ‘Ld.CIT(A)‘), Delhi, both dated 29.08.2025 for the Assessment Year (hereinafter referred to as ‘AY‘) 2018-19 against quantum assessment and penalty levied u/s.272A(1)(d) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act‘).
