9911796707
TMI Blog2024 (9) TMI 374X X X X Extracts X X X X X X X X Extracts X X X X ..... , heard finally. 2. This writ petition under Article 226 of the Constitution of India has been filed to challenge a notice dated 18 March, 2024 ( impugned notice ) issued to the petitioner under Section 148 of the Income Tax Act, 1966 ( the Act ) and also the underlying prior notice and order under Section 148A (b) and Section 148A (d) of the Act, respectively. The reassessment under Section 148 of the Act has been initiated in respect of returns filed by the petitioner-Assessee for the Assessment Year 2020-21. 3. On perusal of the record, it is apparent that the impugned notice dated 07 March, 2024 issued under Section 148A(b), the order passed thereon under Section 148A (d) dated 18 March, 2024 and the consequent notice dated 18 March, 2024 issued under Section 148 of the Act are all issued by the Jurisdictional Assessing Officer ( JAO ) and not by a Faceless Assessing Officer ( FAO ), as is required by the provisions of Section 151A of the Act. 4. To give effect to the provisions of Section 151A, the Central Government has issued a Notification dated 29 March 2022 whereby a faceless mechanism has been introduced. Thus, necessarily in resorting to a procedure under Section 148A a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provides that the Scheme so framed is applicable only to the extent provided in Section 144B of the Act and Section 144B of the Act does not refer to issuance of notice under Section 148 of the Act and hence, the notice cannot be issued by the FAO as per the said Scheme, we express our view as follows:- 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. 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) of the Scheme otiose and to be ignored ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... td. Vs. The Deputy Commissioner of Income Tax, Circle-4(3)(1), Mumbai Ors. Writ Petition (L.) No. 16918 of 2024 dt. 2-07-2024 , whereby in similar circumstances, this Court has allowed the petition considering the provisions of Section 151A of the Act. However, learned counsel for the respondents would submit that as the present case pertains to the central charge, the same would stand covered by the order dated March 31, 2021 passed under section 144B (2) read with section 119 of the Act, and the further order dated 06 September 2021, passed under these sections. Consequently, the contention is that this case would fall outside the purview of the scheme made under Section 151A of the Act, which, but for being under the central charge, would otherwise be covered by the decision of this Court in Hexaware. 7. Learned counsel for the petitioner has also drawn our attention to the decision of this Court in Kairos Properties Pvt. Ltd. vs. Assistant Commissioner of Income-tax and Ors. Writ Petition (L.) No. 22686 of 2024 dated 05-08-2024 ( Kairos Properties ), where the Court considered the effect of scheme as notified by the Central Government under the notification dated 29 March, 2022 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n from the content of both such orders, which we have extracted hereinabove; Secondly , the scheme notified under section 151A under notification dated 29 March, 2022 applying the procedure of faceless mechanism to the proceedings under Section 148A and Section 148 is neither subject to the applicability of the prior order dated 31 March, 2021 read with 6 September, 2021 nor is it explicit so as to include the applicability of the said orders to the scheme as notified under section 151A; Thirdly , it would be doing violence to the language of the notification/scheme dated 29 March, 2022 to read into such notification what has not been expressly provided for and/or something which is kept outside the purview of the said notification, namely, the orders dated 31 March, 2021 and 6 September, 2021. It would be uncalled for as also not appropriate for the Court to read into the scheme dated 29 March, 2022, something which is not included. It cannot be said that the Central Government was not aware as to what was provided for in the orders dated 31 March, 2021 and 6 September, 2021 so as to not include the same under the scheme dated 29 March, 2022. It would thus be not correct, that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 148 of the Act in matters relating to international taxation charges are exempted to follow the procedure of faceless proceedings. In an elaborate judgment, their Lordships considering the provisions of section 151A as also the Notification dated 6 September, 2021 and the scheme notified by the Central Government under Notification dated 29 March, 2022 have held that only the actual assessment or reassessment would be laid in a face to face mode while the selection of cases and issue of notices could be in the faceless mode. 18. The result of the above discussion is to the effect that this Court not only in Hexaware and thereafter in CapitalG LP but also the Division Bench of the High Court of Telangana in Sri Venkataramana Reddy Patloola (supra), to have consistently held that in respect of central charges and international taxation charges, the proceedings under Section 148A read with Section 148 of the Act would be required to be held in a faceless manner, applying the provisions of section 144B and as effected under the provisions of section 151A read with scheme notified by the Central Government vide a Notification dated 29 March, 2022. We accordingly reject the contenti ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
