Reassessment Notice Issued by JAO Instead of NFAC Remitted Back to High Court for Fresh Consideration

Reassessment Notice Issued by JAO Instead of NFAC Remitted Back to High Court for Fresh Consideration

Reassessment Notice Issued by JAO Instead of NFAC Remitted Back to High Court for Fresh Consideration

Issue

Whether reassessment notices issued under Section 148 by the Jurisdictional Assessing Officer (JAO) instead of the National Faceless Assessment Centre (NFAC) under Section 151A are valid, and whether High Court orders quashing such notices should be remitted back for fresh consideration in light of Supreme Court precedents.

Facts

• Context: For Assessment Year 2021-22, the Jurisdictional Assessing Officer (JAO) issued a reassessment notice dated June 28, 2025, under Section 148 to the assessee.

• Legal Challenge: The assessee challenged the notice, contending that as per CBDT Notification dated March 29, 2022, issued under Section 151A read with Section 144B, the exclusive jurisdiction to issue Section 148 notices rested with the NFAC.

• High Court Ruling: The High Court quashed the Section 148 notice and all consequential proceedings, holding that a notice issued by the JAO rather than the NFAC was without jurisdiction.

• Supreme Court Appeal: The Revenue appealed against the High Court decision before the Supreme Court.

Decision

• Supreme Court Order: The Supreme Court held that the legal issues involved regarding the jurisdiction of JAO versus NFAC were squarely covered by recent Supreme Court judgments in Income Tax Officer v. Tej Partap Singh [2026] and Income-tax Officer v. Sai Kumar Mateti [2026].

• Disposal & Remand: The appeals were disposed of in terms of the aforementioned Supreme Court rulings, and the matters were remitted back to the respective High Courts for fresh consideration. Decided partly in favor of the revenue.

Key Takeaways

• Faceless Assessment Jurisdiction: The jurisdictional validity of Section 148 reassessment notices issued by JAOs as opposed to the faceless regime (NFAC) under Section 151A remains a pivotal, evolving legal debate.

• Binding Precedent on Faceless Reassessment: Reassessment notices challenged on the grounds of JAO vs. NFAC jurisdiction must be evaluated strictly in light of binding Supreme Court precedents such as Tej Partap Singh [2026] and Sai Kumar Mateti [2026].

• Remand for Re-examination: Where High Courts quashed notices strictly on jurisdictional grounds prior to definitive Supreme Court guidance, matters are liable to be remitted back for fresh adjudication in line with updated apex court rulings.