2024 (7) TMI 906 - HC - Income Tax

Validity of Faceless assessment of income escaping assessment - Challenge to notice u/s 148 as non-compliance with Section 151A of the Act - notices issued by JAO instead of FAO - HELD THAT - JAO would not have jurisdiction to issue the impugned notices more particularly in view of the clear provisions of Section 151A read with notification dated 29 March, 2022 issued by the Central Government. As fairly conceded on behalf of the revenue, the challenge in the proceedings would stand covered by the decision of this Court in Hexaware Technologies Ltd. ( 2024 (5) TMI 302 - BOMBAY HIGH COURT . The impugned notices would be required to be held to be illegal and invalid. We, accordingly, allow this petition in terms of prayer clause (a).

Summary

Issues Involved:
Challenge to notice issued under Section 148A (b) of the Income Tax Act and subsequent actions taken.

Analysis:

1. Jurisdiction of Assessing Officer under Faceless Scheme:
The petitioner challenged the notice issued under Section 148A (b) of the Income Tax Act, arguing that it was issued by the Jurisdictional Assessing Officer (JAO) in violation of the faceless scheme introduced under Section 151A of the Act. The petitioner relied on a previous judgment by the Division Bench in Hexaware Technologies Limited case, which questioned the validity of notices issued by the JAO outside the faceless assessment scheme. The court in the present case agreed with the petitioner's contention, noting that the JAO lacked jurisdiction to issue such notices under the faceless regime. The court found that the JAO's authority to issue notices under Section 148A (b) and subsequent actions under Section 148A (d) and Section 148 of the Act was superseded by the faceless assessment scheme. This issue was crucial in determining the validity of the impugned notices.

2. Decision and Order:
Based on the analysis of the jurisdictional issue, the court concluded that the petition should be allowed solely on the grounds related to the jurisdiction of the Assessing Officer under the faceless assessment scheme. The court ordered the issuance of a Writ of Certiorari to quash and set aside the impugned notices, including the notice under Section 148 of the Act dated April 12, 2024, the order passed under Section 148A (d) of the Act on the same date, and the notice under Section 148A (b) dated March 21, 2024. The court made the rule absolute in favor of the petitioner, without imposing any costs. The decision was based on the specific legal issue of jurisdiction under the faceless scheme, as highlighted by the petitioner and supported by relevant legal precedents.

This detailed analysis of the judgment showcases the court's reasoning and decision-making process concerning the issues raised by the petitioner regarding the validity of the notices issued under the Income Tax Act and the jurisdiction of the Assessing Officer under the faceless assessment scheme.