MANIMALA,PUDUCHERRY vs. ITO, WARD-3,, PUDUCHERRY

Assessment Years: 2019-20 Manimala Income Tax Officer, 50A Saint Simone Pet, Ward-3, Muthialpet, Pondicherry Pondicherry-605 003. [PAN: BASPM8411L] (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Assessee by : Mr.Suraj Nahar, C.A प्रत्यर्थी की ओर से /Revenue by : Mr.Saujanya Ranjan, IRS सुनवाई की तारीख/Date of Hearing : 23.09.2025 घोषणा की तारीख /Date of Pronouncement : 25.09.2025 आदेश / O R D E R PER AMITABH SHUKLA, A.M :

This appeal is filed by the assessee against the order bearing DIN & Order No.ITBA / NFAC / S / 250 / 2025-26 / 1076507444(1) dated 28.05.2025 of the Learned Commissioner of Income Tax [herein after “CIT(A), National Faceless Appeal Center[NFAC], Delhi, for the assessment year 2019-20. The reference to the word “Act” in this order hereinafter shall mean the Income Tax Act, 1961 as amended from time to time.

2.0 At the outset, the Ld.Counsel for the assessee submitted that both the Ld.AO and the Ld.CIT(A) have passed ex-parte orders in its case. It was stated that order u/s. 147 r.w.s. 144 dated 28.02.2024 was passed by the Ld.AO whereby an addition of Rs.32,16,000/- was made in its case, invoking prescription of section 45 of the Act. The Ld. Counsel argued that it is assailing the order of Ld.CIT(A) both on legal grounds as well as on the merits of the case. As the legal ground of the appellant assessee strikes at the very root of the reassessment order u/s. 147 r.w.s. 144 dated 28.02.2024, we deem it appropriate to adjudicate the legal ground first. 3.0 Thus, through ground of appeal

Nos. 6 to 9 the assessee has challenged the insufficiency of jurisdiction with the Ld.Jurisdictional Assessing Officer to have issued the notice u/s 148 which forms the basis for the reassessment order u/s. 147 r.w.s. 144 dated 28.02.2024. It is the case of the Ld.Counsel for the assessee that as per section 151A of the Act r.w. notification dated 29.03.2022 of Central Board of Direct Taxes, reassessment notice u/s 148 was to be issued by the faceless assessing officer and that issuance of the same by the jurisdictional assessing officer u/s 148 dated 29.03.2023 was unwarranted and not in conformity with statutory conditions governing the matter. It was urged that consequent to notification dated 29th March 2022 issued by the Page - 2 - of 9. Central Board of Direct Taxes, reassessment u/s 148 can be issued by a faceless assessing officer only. It was urged that in the present case as the notice u/s 148 dated 29.03.2023 was issued by the jurisdictional assessing officer the same was invalid and consequently the assessment order u/s 147 r.w.s. 144 dated 28.02.2024 also became an order to be deemed as void ab initio. In support of its contentions, the Ld.Counsel for the assessee placed heavy reliance upon the decision of the Hon’ble Madras High Court dated 24.06.2025 in the batch of writ petitions bearing no.22402 of 2024. 4.0 Per contra, the Ld.DR relied upon the order of lower authorities. It was argued that the decision of Hon’ble Bombay High Court in the case of Hexaware Technologies Limited which is the basis of impugned decision of the Hon’ble Madras High Court dated 24.06.2025 (supra) has been contested by the Revenue before the Hon’ble Apex Court and hence no reliance can be placed. 5.0 We have heard rival submissions in the light of material available on records. It is an admitted fact on records that the notice u/s. 148 dated 29.03.2023, upon which the assessment order u/s 147 r.w.s. 144 dated 28.02.2024 is resting, was issued by the jurisdictional assessing officer and not the faceless assessing officer. We have noted the following provisions of section 151A of the Act:- “…..[Faceless assessment of income escaping assessment.97 Page - 3 - of 9 151A. (1) The Central Government may make a scheme, by notification in the Official Gazette, for the purposes of assessment, reassessment or re-computation under section 147 or issuance of notice under section 14898[or conducting of enquiries or issuance of show-cause notice or passing of order under section 148A] or sanction for issue of such notice under section 151, so as to impart greater efficiency, transparency and accountability by- (a) eliminating the interface between the income-tax authority and the assessee or any other person to the extent technologically feasible; (b) optimising utilisation of the resources through economies of scale and functional specialisation; (c) introducing a team-based assessment, reassessment, re-computation or issuance or sanction of notice with dynamic jurisdiction. (2) The Central Government may, for the purpose of giving effect to the scheme made under sub-section (1), by notification in the Official Gazette, direct that any of the provisions of this Act shall not apply or shall apply with such exceptions, modifications and adaptations as may be specified in the notification: Provided that no direction shall be issued after the 31st day of March, 2022. (3) Every notification issued under sub-section (1) and sub-section (2) shall, as soon as may be after the notification is issued, be laid before each House of Parliament.]….”