Vivek Kumarasamy Vs ITO (ITAT Chennai)
JAO-Issued Notice- Faceless Breach Invalidates 148 Notice—Subject to Revival if Apex Court Overturns Hexaware Line
Assessee filed appeal with a delay of 73 days which Tribunal condoned. Assessee raised an additional legal ground that the notice u/s 148 dated 31.03.2023 issued by ITO, Ward 2(1), Erode (JAO) is without jurisdiction since CBDT Notification dated 29.03.2022 mandates that issuance of notice u/s 148 & reassessment u/s 147 shall be through automated allocation in a faceless manner by NFAC. Tribunal noted that the impugned notice was manually issued by JAO & not by NFAC, thereby violating the mandatory e-assessment of Income Escaping Assessment Scheme, 2022.
Tribunal relied on Chennai ITAT decision in Chellappan Sankaranathan Vs ACIT, Madras HC judgment in TVS Credit Services Ltd. Vs DCIT, Bombay HC in Hexaware Technologies Ltd. & Telangana HC line of decisions which consistently held that issuance of 148 notice by JAO instead of FAO is invalid. Tribunal observed that although Revenue’s SLP in Hexaware is pending, there is no stay, hence the law laid down therein applies. Following the jurisdictional Madras HC, Tribunal held that the 148 notice issued by JAO is void ab initio & all consequential proceedings stand quashed. However, liberty is kept open to Revenue to seek revival if the Apex Court reverses the law subsequently.
