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

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ITA 1322/HYD/2025Status: DisposedITAT Hyderabad30 January 2026AY 2021-22Bench: SHRI RAVISH SOOD, HON'BLE (Judicial Member), SHRI MADHUSUDAN SAWDIA HON'BLE (Accountant Member)1 pages
AI SummaryAllowed

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.

Sections Cited

147, 148, 143(2), 151A, 144B, 37(1), 80C, 124(3), 153D, 153A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, Hyderabad ‘SMC’ Bench, Hyderabad

For Appellant: Shri Aluru Venkata Rao, Sr. AR

आदेशक���त�ल�पअ�े�षत/ Copy of the order forwarded to:- 1. �नधा�रती/The : Rashid Hussain, C/o. P. Murali & Co., Chartered Accountants, 6-3-655/2/3, Somajiguda, Hyderabad, Assessee Telangana-500082. 2. राज�व/ The Revenue : ACIT, Central Circle-1(3), Hyderabad, Telangana. 3. The Principal Commissioner of Income Tax, Central Circle, Hyderabad. 4. �वभागीय��त�न�ध, आयकरअपील�यअ�धकरण /DR,ITAT, Hyderabad. 5. The Commissioner of Income Tax 6. गाड�फ़ाईल / Guard file

आदेशानुसार / BY ORDER

Sr. Private Secretary ITAT, Hyderabad.