ITAT Hyderabad Quashes Reassessments Issued by Jurisdictional AO Post CBDT Notification

The Hyderabad ‘B’ Bench of the ITAT dealt with a batch of four appeals arising from reassessment proceedings for AYs 2015-16, 2018-19 and 2019-20. In all cases, notices under Section 148 and orders under Section 148A(d) were issued by the Jurisdictional Assessing Officer (JAO) after 29.03.2022.

The assessees contended that, pursuant to CBDT Notification No. 18/2022 dated 29.03.2022 issued under Section 151A, reassessment proceedings were mandatorily required to be conducted by the Faceless Assessing Officer (FAO), rendering actions of the JAO without jurisdiction.

Issue Before ITAT: Whether reassessment notices and orders issued by the JAO after 29.03.2022 are valid despite the mandatory faceless reassessment regime.

Tribunal’s Verdict: The ITAT allowed all appeals and quashed the reassessment proceedings. It held that Section 124(3) applies only to territorial or administrative jurisdiction and cannot cure inherent lack of jurisdiction. After 29.03.2022, only the FAO was empowered to issue notices under Section 148 and pass orders under Section 148A(d). Notices and orders issued by the JAO were therefore void ab initio.

Relying on the Kankanala Ravindra Reddy and consistent judicial precedents, the Tribunal held that the reassessment proceedings were without authority of law. Liberty was granted to seek revival depending on the outcome of pending proceedings before the Supreme Court.

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