Bombay HC quashes ₹289 Cr tax notice for Culver Max; FAO rule key.

• Culver Max Entertainment (formerly Sony Pictures Networks India) faced an Income Tax Department charge of understating taxable income by ₹289.91 crore for Assessment Year 2019-20.
• The Income Tax Department attempted to reopen Culver Max's assessment, alleging underreporting due to various claims including CSR deductions and depreciation.
• Culver Max contested the reassessment in the Bombay High Court, arguing the department's conclusions lacked new material and the process was without jurisdiction.
• The Bombay High Court quashed the reassessment notice, ruling it invalid because it was not issued by a Faceless Assessing Officer, citing the Hexaware Technologies Ltd vs ACIT judgment.
• The court allowed the IT department to revive the petition if the Supreme Court overturns the Hexaware decision, as the issue of who can issue reassessment notices remains sub-judice.

Why It Matters: A procedural error nullifies a ₹289 crore tax demand, impacting future tax reassessment cases.