Narayani Rathore Vs Assessment Unit (ITAT Agra)
ITAT Agra Quashes Reassessment Initiated by Jurisdictional AO After 29.03.2022; Faceless Scheme Violation Renders Proceedings Void
The Agra Bench of the ITAT allowed the assessee’s appeal and quashed the reassessment proceedings for AY 2018-19 on the ground of lack of jurisdiction. The Tribunal held that the notices issued under sections 148A(b), 148A(d), and 148 by the Jurisdictional Assessing Officer (JAO) were invalid, as they were issued after the CBDT notified the Faceless Income Escaping Assessment Scheme, 2022 on 29.03.2022 under section 151A of the Act.
Relying on binding precedents, particularly the Bombay High Court in Hexaware Technologies Ltd. (464 ITR 430) and the Madras High Court (Division Bench) in Mark Studio India (P.) Ltd., the Tribunal reiterated that post-29.03.2022, reassessment proceedings—including issuance of notices under sections 148A and 148—must be carried out only through the faceless mechanism. The argument of “concurrent jurisdiction” between JAO and FAO was expressly rejected.
The Tribunal emphasized that action taken contrary to the statutory scheme itself causes prejudice and violates the rule of law, making it unnecessary for the assessee to demonstrate any further prejudice. Consequently, the reassessment order passed pursuant to such invalid notices was held to be null and void ab initio, and the Tribunal refrained from examining the merits of the additions. The appeal was allowed, with other grounds left open
FULL TEXT OF THE ORDER OF ITAT AGRA
