CHANDINI DUVVURI,HYDERABAD vs. ITO (INT TAXN)-1, HYDERABAD

Facts

The assessee, a non-resident, did not file an income tax return for AY 2015-16. Information from the Risk Management Strategy indicated significant financial transactions. Consequently, the A.O. initiated reassessment proceedings, treated time deposits as unexplained investment and interest as income, completing an ex-parte assessment under Section 144 r.w.s. 147 due to the assessee's non-compliance. The CIT(A) set aside this assessment and restored the matter to the A.O. for fresh assessment, which the assessee challenged, arguing the original notice under Section 148 was invalid.

Held

The Tribunal held that the notice issued by the Jurisdictional Assessing Officer (JAO) under Section 148 of the Act after 29.03.2022 is without jurisdiction and cannot be sustained, following decisions of the Telangana High Court. Therefore, the assessment order passed by the A.O. under Section 147 r.w.s. 144, consequent to the invalid notice, was quashed. Liberty was granted to both parties to revive the appeal if the pending Supreme Court decision on the matter requires it.

Key Issues

Whether the reassessment notice issued under Section 148 by the Jurisdictional Assessing Officer after 29.03.2022 is valid, given the introduction of the Faceless Assessment Scheme and precedents from the jurisdictional High Court.