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TMI Blog2024 (8) TMI 126X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 as and there is no dispute that the JAO had no jurisdiction to issue the impugned notice. We, accordingly, allow this petition in favour of assessee. - G. S. KULKARNI SOMASEKHAR SUNDARESAN, JJ. For the Petitioner : Mr. Rajendra, Advocate. For the Respondents : Mr. Vikas T. Khanchandani a/w. Mr. Eshaan Saroop, Advocates. P.C. : 1. Rule. Rule made returnable forthwit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clearly declared the law as follows : 35. Further, in our view, there is no question of concurrent jurisdiction of the JAO and the FAO for issuance of notice under Section 148 of the Act or even for passing assessment or reassessment order. When specific jurisdiction has been assigned to either the JAO or the FAO in the Scheme dated 29th March, 2022, then it is to the exclusion of the other. To take any other view in the matter, would not only result in chaos but also render the whole faceless proceedings redundant. If the argument of Revenue is to be accepted, then even when notices are issued by the FAO, it would be open to an assessee to make submission before the JAO and vice versa, which is clearly not contemplated in the Act. Therefor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... omputation 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. The Scheme is clearly applicable for issuance of notice under Section 148 of the Act and accordingly, it is only the FAO which can issue the notice under Section 148 of the Act and not the JAO. The argument advanced by respondent would render clause 3 (b) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the Respondent-Revenue is not in compliance with the Scheme notified by the Central Government pursuant to Section 151A (2) of the Act. The Scheme has also been tabled in Parliament and is in the character of subordinate legislation, which governs the conduct of proceedings under Section 148A as well as Section 148 of the Act. In view of the explicit declaration of the law in Hexaware, the grievance of the Petitioner-Assessee insofar as it relates to an invalid issuance of a notice is sustainable and consequently, the very manner in which the proceedings have been initiated, vitiates the proceedings. 6. Learned Counsel for both the parties agree that the proceedings initiated under Section 148 of the Act would not be sustainable in view ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 24. Our attention has also been drawn to a decision in the case of Vikram Developers Private Limited vs. Income Tax Officer 8 (3) (1) and Others Writ Petition (L) No. 14777 of 2024 ( Vikram Developers ) dated 10th May, 2024, where the Division Bench of this Court that rendered judgement in Hexaware had also ruled that any reassessment order passed pursuant to the foundationally-defective notice under Section 148 would also stand quashed. So also, the Division Bench ruled in Vikram Developers that any consequential demand notices or penalty notices will also stand quashed and set aside. 10. In the light of the above discussion, since there is no dispute that the JAO had no jurisdiction to issue the impugned notice, the Writ Petition deserves ..... X X X X Extracts X X X X X X X X Extracts X X X X
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