Smt. Lalitha Kuchibhatla Vs ITO (ITAT Hyderabad)
Reassessment Quashed: Notice u/s 148 Issued by Jurisdictional AO After Faceless Scheme Held Void
The Hyderabad Bench (SMC) of the ITAT quashed the reassessment proceedings for AY 2016-17, holding that the notice under Section 148 and the order under Section 148A(d) issued by the Jurisdictional Assessing Officer (JAO) after 29.03.2022 were without jurisdiction and invalid.
The Tribunal noted that, pursuant to CBDT Notification No. 18/2022 dated 29.03.2022 issued under Section 151A, all reassessment proceedings and notices under Section 148 after that date must be issued only through the Faceless Assessing Officer (FAO). In the present case, both the order under Section 148A(d) and the notice under Section 148 dated 23.03.2023 were issued by the JAO, contrary to the mandatory faceless reassessment scheme.
Relying on the judgment of the Telangana High Court in Kotha Kanthaiah and a series of High Court decisions including Hexaware Technologies Ltd., the Tribunal held that the JAO had ceased to have jurisdiction to issue reassessment notices after 29.03.2022. A notice issued by an authority lacking jurisdiction is void ab initio and all consequential proceedings stand vitiated.
Accordingly, the ITAT set aside the order of the CIT(A), quashed the reassessment proceedings and the assessment order. Liberty was granted to revive the appeal depending on the final outcome of the pending SLP before the Supreme Court in the Hexaware matter
FULL TEXT OF THE ORDER OF ITAT HYDERABAD
