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TMI Blog2024 (7) TMI 1494X X X X Extracts X X X X X X X X Extracts X X X X ..... CBDT covered both such aspects of the provisions of Section 151A of the Act. It was observed that the Scheme as framed was clearly applicable for issuance of notice u/s 148 of the Act and accordingly, only the FAO can issue the notice u/s 148 of the Act and not the JAO. In our opinion, there is merit in the contention as raised on behalf of the Petitioner that for the aforesaid reasons, as well, the impugned notice would also be hit by the provisions of Section 151A of the Act insofar as the issuance of notice is by the JAO who has acted without jurisdiction. The impugned notice issued u/s 148 of the Act is quashed and set aside as being barred by limitation and also being contrary to the provisions of Section 151A. - G.S. KULKARNI SOMASEKHAR SUNDARESAN, JJ. For the Petitioner : Mr. Jose Pulikkoden a/w. Steve Pulikkoden and Rakshitha Poojary, Advocates. For the Respondents : Mr. Suresh Kumar, Advocate. ORAL JUDGMENT (PER, G.S. KULKARNI, J.) 1. Rule. Rule made returnable forthwith. Respondents waive service. By consent of the parties, heard finally. 2. In this petition filed under Article 226 of the Constitution of India, the Petitioner has prayed for reliefs which inter alia rev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essment proceedings came to be filed, responding to the notice dated 20 May, 2022. On such objections, the impugned order came to be passed on 29 July, 2022, rejecting the Petitioner s submissions and thereby issuing the impugned notice under Section 148 of the Act, dated 29 July, 2022. 6. The primary contention as urged on behalf of the Petitioner in answering the impugned notice under Section 148 of the Act is to the effect that the notice is barred by limitation as provided under Section 149 (1) of the Act, read with the first proviso thereunder. It is submitted that admittedly, in the present case, the notice was issued on 20 May, 2022, which is after the prescribed period of limitation, which had expired on 31 March, 2022. It is submitted that such issue had fallen for consideration before a Division Bench of this Court in Hexaware Technologies Limited Vs. Assistant Commissioner of Income Tax 4 Ors. (2024) 464 ITR 430, wherein the Court was considering the legality of the notice under Section 148 issued on 27 August, 2022, on the ground of the same being barred by limitation as per the first proviso of section 149 of the Act; and on the second issue whether such notice would b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been issued under the erstwhile provision of Section 149 (1) (b) of the Act, for any assessment year beginning on or before the 1st day of April 2021, the notice cannot be issued even under the new provisions. 25. Section 149 (1)(b) of the erstwhile provisions provided a time limit of six years from the end of the relevant assessment year for issuing notice under Section 148 of the Act. For the relevant assessment year, being Assessment Year 2015-2016, 6th year expired on 31st March 2022. The notice under Section 148 of the Act, in the present case, is issued on 27th August 2022, i.e., clearly beyond the period of limitation prescribed in Section 149 read with the first proviso to the said section. This is squarely covered by paragraphs 36 and 37 of New India Assurance (Supra) which has been reproduced above in paragraph 23. 26. The purpose of the first proviso to Section 149 of the Act is consistent with the stated object of the government to make prospective amendments in the Act. Accordingly, the proviso provides that up to Assessment Year 2021-2022 (period before the amendment), the period of limitation as prescribed in the erstwhile provisions of Section 149 (1) (b) of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Act itself contemplates formulation of the Scheme for both assessment, reassessment or recomputation under Section 147, as well as for issuance of notice under Section 148 of the Act, and that the Scheme framed by the CBDT covered both such aspects of the provisions of Section 151A of the Act. It was observed that the Scheme as framed was clearly applicable for issuance of notice under Section 148 of the Act and accordingly, only the FAO can issue the notice under Section 148 of the Act and not the JAO. The relevant observations of the Court in this regard are extracted hereunder : 36 . Section 151A of the Act itself contemplates formulation of Scheme for both assessment, reassessment or recomputation under Section 147 as well as for issuance of notice under Section 148 of the Act. Therefore, the Scheme framed by the CBDT, which covers both the aforesaid aspect of the provisions of Section 151A of the Act cannot be said to be applicable only for one aspect, i.e., proceedings post the issue of notice under Section 148 of the Act being assessment, reassessment or recomputation under Section 147 of the Act and inapplicable to the issuance of notice under Section 148 of the Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the Board as referred to in Section 148 of the Act and in a faceless manner. Therefore, to the extent provided in Section 144B of the Act does not go with issuance of notice and is applicable only with reference to assessment or reassessment. The phrase to the extent provided in Section 144B of the Act would mean that the restriction provided in Section 144B of the Act, such as keeping the International Tax Jurisdiction or Central Circle Jurisdiction out of the ambit of Section 144B of the Act would also apply under the Scheme. Further the exceptions provided in sub-section (7) and (8) of Section 144B of the Act would also be applicable to the Scheme. 11. In our opinion, there is merit in the contention as raised on behalf of the Petitioner that for the aforesaid reasons, as well, the impugned notice would also be hit by the provisions of Section 151A of the Act insofar as the issuance of notice is by the JAO who has acted without jurisdiction. 12. Mr. Suresh Kumar, Learned Counsel for the Respondents-Revenue would not be in a position to dispute such contention as advanced by the Petitioner, considering the nature of the notice issued and the same having been issued by the J ..... 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