Facts of the Case

The petitioner, All India Kataria Education Society, filed a writ petition challenging the notice dated 16.07.2025 issued under Section 148 of the Income-tax Act, 1961 and the reassessment proceedings initiated under Section 147. The primary ground of challenge was that after issuance of the CBDT Notification dated 29.03.2022 mandating faceless reassessment, the Jurisdictional Assessing Officer lacked authority to initiate reassessment proceedings and that such power vested only with the Faceless Assessing Officer.

The petitioner sought quashing of the notice and consequential proceedings on the ground of lack of jurisdiction.

Issues Involved

Whether reassessment proceedings under Sections 147 and 148 can be validly initiated by the Jurisdictional Assessing Officer after introduction of the faceless reassessment regime, and whether such initiation is without jurisdiction.

Petitioner’s Arguments

The petitioner contended that in view of the CBDT Notification dated 29.03.2022, reassessment proceedings were required to be conducted exclusively in a faceless manner and, therefore, only the Faceless Assessing Officer could initiate such proceedings. It was argued that issuance of notice under Section 148 by the Jurisdictional Assessing Officer was patently illegal and without authority of law.

Respondents’ Arguments

The Revenue submitted that the issue raised by the petitioner was no longer res integra and stood conclusively settled by the Delhi High Court in TKS Builders Pvt. Ltd. vs. Income Tax Officer, Ward 25(3), New Delhi. It was argued that reassessment proceedings initiated by the Jurisdictional Assessing Officer were valid and that the faceless regime did not divest the JAO of jurisdiction to initiate reassessment.

Court Order / Findings

The Delhi High Court noted the fair concession of the petitioner’s senior counsel that the issue stood covered against the petitioner by the binding decision of the Court in TKS Builders Pvt. Ltd. v. Income Tax Officer, Ward 25(3), New Delhi. The Court further took note of subsequent decisions including PC Jeweller Limited v. Assistant Commissioner of Income Tax and Mehak Jagga v. Income Tax Officer, wherein similar challenges had been rejected by following TKS Builders.

Applying the principle of judicial discipline and parity of reasoning, the Court held that the Jurisdictional Assessing Officer is competent to initiate reassessment proceedings notwithstanding the faceless assessment framework. The Court clarified that other rights and contentions of the petitioner were kept open to be urged before the assessing authorities during reassessment proceedings.

Important Clarification

The Court clarified that the faceless reassessment regime does not invalidate reassessment proceedings initiated by the Jurisdictional Assessing Officer. Challenges limited solely to the issue of jurisdiction are not maintainable in view of binding precedent, though assessees remain free to raise all other permissible contentions during reassessment.

Final Outcome

The writ petition was dismissed. The Delhi High Court upheld the validity of the notice dated 16.07.2025 issued under Section 148 by the Jurisdictional Assessing Officer and dismissed all pending applications as infructuous, while reserving the petitioner’s rights to raise other issues before the Income-tax Authorities in accordance with law.

Link to download order- https://www.mytaxexpert.co.in/uploads/1769682577_ALLINDIAKATARIAEDUCATIONSOCIETYVsASSISTANTCOMMISSIONEROFINCOMETAXCENTRALCIRCLE2DELHIANR..pdf

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