Reassessment Notices Issued by JAO instead of FAO Not Valid: Madras HC Quashes Notices, Permits Revival After SC Verdict on Hexaware Case [Read Order]

The Madras High Court has quashed a batch of reassessment notices issued by Jurisdictional Assessment Officers ( JAOs ) instead of the designated Faceless Assessment Officers (FAOs).

The Court, comprising Chief Justice K.R. Shriram and Justice Sunder Mohan, disposed of numerous writ petitions filed by aggrieved assessees who contended that the impugned notices under Section 148 of the Income Tax Act were vitiated on the sole ground that they were issued by local jurisdictional officers, contrary to the statutory mandate of the faceless assessment scheme.

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The court relied on the precedent laid down by the Bombay High Court in the Hexaware Technologies Ltd. case and observed that non-issuance of notice by FAO will make the notice invalid.

During the hearing, the Revenue states that if the judgment in Hexaware Technologies Limited is interfered with by the Apex Court, then liberty be given to the Revenue to take steps as available in accordance with law to revive these notices.

Thus the court said that the Revenue will be permitted to revive the show cause notices already issued and take further proceedings in accordance with law.

It was also clarified that other connected legal issues not directly covered by this ruling remain open to be contested at the appropriate stage.

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