Delhi High Court on Jurisdiction Under Section 148: JAO and FAO Have Concurrent Powers.

Headnote:

The Delhi High Court held that both the Jurisdictional Assessing Officer (JAO) and the Faceless Assessing Officer (FAO) possess concurrent jurisdiction to issue notices under Section 148 of the Income Tax Act. The Court rejected the petitioners’ challenge that only the FAO could issue such notices under the E-Assessment Scheme. It ruled that the 2022 Scheme does not curtail the statutory power of JAOs, and absent explicit exclusion, JAO-issued notices remain valid. Finding no illegality in the initiation of reassessment proceedings, the Court dismissed all writ petitions.

Background:

The petitioners challenged reassessment notices issued under Section 148, arguing that:

• Notices must be issued only by the FAO, not the JAO, after the 2022 E-Assessment Scheme.

• Therefore, the impugned notices lacked jurisdiction.

The Revenue contended:

• JAOs retain jurisdiction unless specifically excluded by statute.

• The E-Assessment of Income Escaping Assessment Scheme, 2022, is only a procedural framework, not a source-limiting provision.

• Supreme Court judgments (e.g., Union of India v. Ashish Agarwal) recognise the need for statutory backing for any withdrawal of JAO powers.

Multiple petitions were clubbed as they raised the same question of law.

Court’s Observations:

Statutory Powers Not Removed

The power to issue Section 148 notices flows from the Income Tax Act. Delegated schemes cannot override or restrict statutory jurisdiction unless expressly provided.

Section 151A Scheme Does Not Exclude JAO

The 2022 Scheme provides procedural guidance for faceless reassessments but contains no provision eliminating JAO’s authority.

Ashish Agarwal Judgment Reaffirmed

The Supreme Court held that reassessment powers remain vested in Assessing Officers unless explicitly modified by the legislature, not merely by administrative schemes.

Concurrent Jurisdiction Upheld

Both FAO and JAO can start reassessment proceedings. The petitioners failed to show any statutory amendment depriving the JAO of such power.

Notices Valid

Since the JAOs acted within statutory authority, the Court found no illegality in issuing notices under Section 148.

All Petitions Dismissed

The Court refused to interfere, stating that the factual and merits-based review must continue in reassessment proceedings.

Legal Provisions Discussed:

Section 148, Income Tax Act, 1961 — Issuance of notice for income escaping assessment.

Section 151, 151A, Income Tax Act — Sanction and procedural framework for reassessment.

Income Escaping Assessment Scheme, 2022 — Governs faceless reassessment procedures.

Union of India v. Ashish Agarwal, (2022) 8 SCC 148 — Supreme Court interpretation of reassessment powers.

Citation: 2025:DEL:XXXX

Case: Inder Dev Gupta & Ors. v. Assistant Commissioner of Income Tax, Central Circle 2–Delhi

Court: High Court of Delhi at New Delhi

Date of Decision: 21 November 2025

Writ Petition Nos.: W.P.(C) 16937/2025; 16939/2025; 16949/2025; 16950/2025; 16985/2025; 16986/2025; 16987/2025; 16995/2025; 17082/2025