No Jurisdiction for JAO to Issue Income Tax Reassessment Notices outside NFAC Framework: Bombay HC [Read Order]
Bombay HC nullifies Reassessment Notice issued beyond Jurisdiction of JAO
The Bombay High Court ruled that the Jurisdictional Assessing Officer ( JAO ) loses authority to issue reassessment notices under Section 148A(b) and take subsequent actions under Section 148A(d) and Section 148 of the Income Tax Act outside the framework of faceless assessment. The petitioner challenged the validity of the reassessment notice and subsequent order issued by the JAO,...
The Bombay High Court ruled that the Jurisdictional Assessing Officer ( JAO ) loses authority to issue reassessment notices under Section 148A(b) and take subsequent actions under Section 148A(d) and Section 148 of the Income Tax Act outside the framework of faceless assessment.
The petitioner challenged the validity of the reassessment notice and subsequent order issued by the JAO, arguing that such actions should have adhered to the provisions of the faceless assessment scheme mandated under Section 151A of the IT Act.
The petitioner submitted that, “such issue fell for consideration of the Division Bench of this Court in Hexaware Technologies Limited V/s. Assistant Commissioner of Income Tax, Circle 15(1)(2), Mumbai & Ors.”
The Bombay High Court noted that, “The Division Bench examining the provisions of Section 151A of the Act as also the faceless regime which was brought into effect by the Central Government by the notification dated 29 March 2022 came to the conclusion that the Jurisdictional Assessing Officer would cease to have jurisdiction to issue any notice under Section 148A(b) and to take further actions under Section 148A(d) and Section 148 of the Act, outside the faceless assessment.”
It was also observed that the counsel for the respondents did not dispute this position.
Dr. K. Shivraman, Senior Advocate and Shashi Bekal appeared for Petitioner and P. A. Narayanan argued for Respondents.
Thus, it was concluded that the challenge as raised by the petitioner on such ground stands squarely covered by the decision of the Bombay High Court in Hexaware Technologies Limited (supra).
Read More: Reopening of Income Tax Assessment on Change of Opinion Invalid when barred by Limitation: Bombay HC
The Division Bench of Justices G. S. Kulkarni and Somasekhar Sundaresan observed that the JAO lacked the mandate to issue reassessment notices due to the implementation of the faceless scheme under Section 151A of the Income Tax Act, as notified by the Central Government on March 29, 2022.
The Bombay High Court thus invalidated the notice issued under Section 148 and the order passed under Section 148A(d) of the Income Tax Act, 1961.
To Read the full text of the Order CLICK HERE
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