Section 148 notices must be issued in faceless manner under Section 151A; JAO issuance invalidates reassessment.

आदेश/ORDER

PER VIJAY PAL RAO, VICE PRESIDENT :

This appeal by the Revenue is directed against the Order dated 29.07.2025 of the learned CIT(A)-National Faceless Appeal Centre [in short “NFAC], Delhi, for the assessment year 2017-2018.

2. The Revenue has raised the following grounds in the instant appeal:

1. “The NFAC ought to have upheld the order both on facts and in law.

2. On the facts and circumstance of the case and in law, the NFAC erred in treating the notice u/s 148 issued by the JAO as invalid and issued without jurisdiction as per the provisions of section 151A of the Act.

3. The NFAC erred not considering the decision given by Hon'ble Calcutta High Court in the case of M/s Triton Overseas Pvt Ltd Vs Union of India in WPO/1566/2023 and which were decided the same issue in favour of Revenue.

4. Further, the NFAC ignored the MA filed (vide no. 39717/2025 dated 22.07.2025) by the department in the decision of Hon'ble Supreme Court in the case of Shri Deepanjan Roy Vs. ADIT dated 16/07/2025 relied upon by and the same is pending for adjudication.

5. Any other grounds that may be urged at the time of hearing.”

3. None appeared on behalf of the assessee despite repeated notices were issued. Therefore, the Bench proposed to hear and dispose of this appeal ex-parte.

4. The Revenue has challenged the Order of the learned CIT(A) whereby the notice issued by the Jurisdictional Assessing Officer [in short “JAO”] u/sec.148 of the Income Tax Act [in short "the Act"], 1961 was held as invalid without following the Faceless Assessment Scheme and provisions of sec.151A of the Act.

5. The learned DR has relied upon the Orders of the Assessing Officer and submitted that the issue is pending adjudication before the Hon’ble Supreme Court in the case of Hexaware Technology Ltd., in the SLP filed by the Department against the Judgment of Hon’ble High Court of Bombay and, therefore, the same may be kept in abeyance till the outcome of the SLP filed by the Department before the Hon’ble Supreme Court.

6. We have heard the learned DR and considered the relevant material on record. We note that the assessee has filed return of income on 31.03.2018 declaring total income of Rs.7,41,870/- which was accepted by the Assessing Officer during the course of assessment proceedings u/sec.143(1)(a) of the Act. Subsequently, as per the information available with the department, during the financial year 2016-2017 relevant to assessment year under consideration the assessee has introduced the capital of Rs.2,91,75,000/- by way of won funds/transfer form accounts to WDL by TR/Cheque deposit/ cash deposit / self / DEPTFR / OWN CHQ XFER DP / Cheque deposit by TR etc. The case of the assessee was reopened u/sec.147 of the Act and the Jurisdictional Assessing Officer, Ward-1, Nizamabad has issued notice under sec.148 of the Act, dated 22.07.2022. In response to the said notice, the assessee has filed return of income on 03.08.2022 declaring total income of Rs.7,41,870/-. During the course of assessment proceedings, the Assessing Officer has issued various notices, and the assessee has filed her submissions. The Assessing Officer assessed the income of the assessee at Rs.32,51,870/-, against which, the assessee carried the matter in appeal before the learned CIT(A) challenging the validity of notice issued by JAO u / sec.148 of the Act instead of Faceless Assessment Officer [ in short “FAO” ] as per the National Faceless Assessment Scheme. The learned CIT(A) allowed the appeal of the assessee by observing that issuance of notice u/sec.148 in faceless manner is mandatory and therefore, treated the notice issued u/sec.148 of the Act