CHEMOX EXPORTS IMPORTS PVT LTD,MUMBAI vs. INCOME TAX DEPARTMENT, ASSESSMENT UNIT, DELHI

Facts

The assessee's assessment for AY 2018-19 was reopened based on information suggesting escaped income from property sales, rental income, service charges, and undisclosed sales. The assessee challenged the validity of the reopening proceedings and the notices issued under section 148 of the Income Tax Act.

Held

The Tribunal, relying on High Court precedents, held that the reassessment notices issued by the Jurisdictional Assessing Officer were per se illegal and void. This was because the procedure adopted by the Revenue did not comply with Section 151A of the Income Tax Act and the "e-Assessment of Income Escaping Assessment Scheme, 2022", which mandate automated allocation and faceless assessment. Consequently, the impugned notices and the resultant assessment order were quashed.

Key Issues

Whether the reassessment proceedings initiated by notices under section 148 were valid, particularly in light of Section 151A of the Income Tax Act and the e-Assessment Scheme, 2022, which require automated allocation and faceless procedure.