The assessee had undertaken a project for development of flats which was in progress in which she was co-developer along with one ASPL. The assessee was following project completion method of accounting. She received advances from customers. The assessee had filed her return of income under section 139 declaring the total income as ‘Nil’. The return was processed under section 143(1). Subsequently, an information was received from the insight portal in regard to details of sale of flats and TDS under section 194IA deducted on said sales, which was not disclosed by the assessee in its return, hence, there was an undisclosed income of certain amount. On basis of same, the Assessing Officer reopened the assessment of the assessee. On writ the Court held that there is much substance in the contention as urged on behalf of the petitioner that the Jurisdictional Assessing Officer could not have issued a notice under section 148A(b), outside the Faceless Assessment Scheme. In the context of the contentions as urged on behalf of the petitioner, at the outset, it may be noted that the provisions of section 151A, which was inserted by the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions), Act, 2020 (for short, “TOLA”) with effect from 01 November, 2020 providing for faceless assessment of income escaping assessment. A bare perusal of section 151A indicates that the Central Government was empowered to make a scheme, by publication of a notification in the Official Gazette, for the purposes of assessment, reassessment or re-computation of income under section 147 or for issuance of notice under section 148 or for conducting enquiries or issuance of show cause notice or for passing of order under section 148A or sanction for issue of such notice under section 151, so as to impart greater efficiency, transparency and accountability in the manner as provided for in clauses (a), (b) and (c) of sub-section (1). Sub-section (2) provides that the Central Government may, for the purpose of giving effect to the scheme made under sub-section (1), by notification in the Official Gazette, direct that any of the provisions of the Act shall not apply or shall apply with such exceptions, modifications and adaptations as may be specified in the notification. The proviso below sub-section (2) makes it explicitly clear that such direction shall not be issued after the 31 March, 2022. Sub-Section (3) provides that every notification which would be in the nature of a subordinate legislation to be issued under sub-section (1) and sub-section (2) shall, as soon as may be after the notification is issued, be laid before each House of Parliament. In pursuance of section 151A, the Central Government by notification dated 29 March, 2022 notified a scheme in regard to faceless assessment inter alia providing that the assessment, reassessment or recomputation of income under section 147 as also the issuance of notice under section 148, shall be through automated allocation, in accordance with risk management strategy formulated by the Board as referred to in section 148 for issuance of notice and in a faceless manner. Section 144B is a provision which ordains faceless assessment. Perusal of section 144B indicates the entire procedure to be followed in undertaking assessment in a faceless manner involving the National Faceless Assessment Center. Section 144B of the Act although was inserted by the TOLA, it has been brought into effect from 01April, 2021. [Para 15]

The JAO had no jurisdiction to issue such notice, as it was not issued as per the requirements of section 151A read with section 144B.  Further, the order passed by the Assessing Officer requires interference as it is clear from reading of the impugned order that the submission which was made on behalf of the petitioner before the Assessing Officer that the petitioner was following the project completion method, has not been taken into consideration while issuing the impugned notice and in coming to a conclusion to re-open the assessment. Accordingly the writ petition is allowed and the notice and order disposing the objection is set a side.  (AY. 2016-17)