Ankit Jain Vs ACIT (ITAT Hyderabad)
JAO Oversteps, Reopening Collapses: Faceless Mandate Breached Post-29-03-2022, Only FAO Can Issue 148—ITAT Quashes Reassessment
The Hyderabad ITAT allowed the Assessee’s appeal and quashed the reassessment framed u/s 147 r.w.s. 144B, holding that the very initiation of proceedings was without jurisdiction. The Tribunal found that the order u/s 148A(d) dated 30-03-2022 and the notice u/s 148 issued on the same date were passed by the Jurisdictional Assessing Officer (JAO), whereas CBDT Notification No.18/2022 dated 29-03-2022, issued u/s 151A, mandates faceless issuance of 148 notices by the Faceless Assessing Officer (FAO) w.e.f. 29-03-2022.
The Tribunal rejected Revenue’s objection based on Section 124(3), holding that the Assessee’s challenge was not to territorial/administrative jurisdiction, but to the inherent lack of jurisdiction of the JAO—an issue which can be raised at any stage and is not cured by participation or waiver. The Tribunal distinguished the Supreme Court ruling in DCIT v. Kalinga Institute of Industrial Technology, and followed binding precedents including Telangana High Court in Kankanala Ravindra Reddy and Coordinate Bench decisions.
Since the JAO had ceased to have authority to issue notice u/s 148 after 29-03-2022, the notice itself was held void ab initio, and all consequential proceedings including the reassessment order were quashed. Other grounds on merits were left open, with liberty to revive in case of a contrary decision by the Supreme Court in pending SLPs on the faceless-reopening issue.
FULL TEXT OF THE ORDER OF ITAT HYDERABAD
