RASHID HUSSAIN,HYDERABAD vs. ACIT., CENTRAL CIRCLE-1(3), HYDERABAD

Facts

The assessee's appeal is against an order by the CIT(A) which arose from an order passed by the AO under Section 147 of the Income Tax Act. The AO's order disallowed a claim for deduction under Section 80C and expenditure towards commission income.

Held

The Tribunal held that the notice issued under Section 148 of the Act was bad and illegal because it was issued by the Jurisdictional Assessing Officer (JAO) outside the faceless mechanism, which is mandatory for reassessment proceedings initiated after April 1, 2021. This violates the provisions of Section 151A and the e-Assessment Scheme, 2022.

Key Issues

Whether the reassessment notice issued under Section 148 of the Income Tax Act, 1961, by the Jurisdictional Assessing Officer (JAO) is valid, or if it should have been issued through the faceless mechanism as per the Finance Act, 2021 and subsequent schemes.