The High Court quashed reassessment proceedings which were initiated after the expiry of three years from the end of the relevant assessment year. The Court found two fatal jurisdictional defects vitiating the entire proceedings. Firstly, the notice under section 148 of the Income-tax Act, 1961 was issued by the Jurisdictional Assessing Officer (JAO) instead of the Faceless Assessing Officer (FAO), which is contrary to the mandatory scheme notified under section 151A. Secondly, the sanction for initiating the reassessment was granted by the PCIT, an authority specified under section 151(i), whereas for proceedings initiated beyond three years, the sanction was required from the higher authority prescribed under section 151(ii).
(AY. 2018-19)