Notices issued under section 148 by JAO & not FAO are invalid – Madras HC follows Bombay HC in Hexaware Technology
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The Hon’ble Madras High Court has ruled that notices issued u/s 148 of the Income-tax Act, 1961 (‘the Act’) by Jurisdictional Assessing Officers (‘JAO’) on or after March 29, 2022 are invalid (M/s TVS Credit Services Limited v. DCIT, WP Nos. 22402/2024, dt. June 24, 2025).
Following the precedent set by the Hon’ble Bombay High Court in Hexaware Technologies Ltd vs. ACIT, ITAT Chennai has issued Circular No. 1 jd(ATM)/2025 dt. July 04, 2025 requesting stakeholders to identify cases covered by this ruling for consolidated hearing.
Key Takeaways of ITAT Circular:
– Notices issued u/s 148 of the Act post March 29, 2022 may be deemed invalid.
– Cases covered by this ruling may be listed for consolidated hearing.
– Tax professionals and departmental representatives are encouraged to share relevant cases.
Madras HC rules in favour of TVS Credit Services Limited: only Faceless Assessment officer (FAO) can issue notice u/s 148A of the Act
The Bench held that notices issued by the JAO instead of the FAO are invalid, following the judgment in Hexaware Technologies Ltd vs. Assistant Commissioner of Income Tax. Consequently, the notices issued by JAO were quashed, and the petitions were disposed of in favor of the assessees, with liberty to the Revenue to apply if the Apex Court reverses the Hexaware judgment.
The copy of the order is as under:
