Raja Reddy Sannareddy Vs Assessment Unit (Telangana High Court)
Telangana High Court Upholds Faceless Assessment Framework Under Income Tax Act No Violation of Natural Justice Where Multiple Opportunities Were Granted
Introduction
The Telangana High Court in W.P. No. 6429 of 2026 – Raja Reddy Sannareddy v. Assessment Unit, Income Tax Department delivered an important ruling on the validity of faceless assessments under Section 144B of the Income Tax Act, 1961. The judgment reiterates that repeated non-compliance by the assessee cannot later be projected as denial of natural justice.
The Division Bench comprising the Hon’ble Chief Justice Sri Aparesh Kumar Singh and Hon’ble Sri Justice G.M. Mohiuddin dismissed the writ petition and upheld the assessment proceedings conducted under the National Faceless Assessment Centre (NFAC).
Background of the Case
The petitioner challenged the assessment order dated 03.02.2026 passed under Section 143(3) for AY 2024-25. The scrutiny was initiated under the CASS mechanism on the ground:
“Large Exemption under category others in schedule EI (Old Tax Regime).”
The petitioner alleged:
- Violation of principles of natural justice,
- Lack of adequate hearing opportunity,
- Failure to consider documents subsequently filed,
- Improper designation of the Assessing Officer in a faceless assessment system.
The petitioner also sought interim protection against the assessment order.
