All India Insurance Pensioners Association Vs ITO (ITAT Chennai)
Reassessment of Pensioners’ Association Quashed: JAO Cannot Issue Section 148 Notice Post Faceless Regime
The Chennai Bench of the ITAT, in All India Insurance Pensioners Association v. ITO (AY 2019-20), quashed the reassessment proceedings on the ground that the section 148 notice dated 31.03.2023 was issued by the Jurisdictional Assessing Officer (JAO) in violation of the faceless reassessment scheme mandated under section 151A of the Income-tax Act.
The Tribunal observed that after the CBDT notification dated 29.03.2022, reassessment proceedings—including issuance of notices under sections 148A and 148—must be conducted strictly through the faceless mechanism. Since the impugned notice was issued by the JAO and not through NFAC, the very assumption of jurisdiction was held to be illegal and against the rule of law.
Placing reliance on the jurisdictional Madras High Court (Division Bench) ruling in Mark Studio India (P.) Ltd. and following the Bombay High Court decision in Hexaware Technologies Ltd. along with consistent views of other High Courts, the Tribunal held that the legal issue is no longer res integra. Consequently, the reassessment order passed pursuant to the invalid notice was declared null and void, and the Tribunal did not examine the merits of additions.
The assessee’s appeal was allowed, subject to the liberty reserved to the Revenue in line with the High Court’s caveat, should a contrary view emerge from the Supreme Court.
FULL TEXT OF THE ORDER OF ITAT CHENNAI
