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TMI Blog2024 (9) TMI 875X X X X Extracts X X X X X X X X Extracts X X X X ..... e IT Act.it is apparent that the Respondent- Revenue has not complied 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. 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. In view of the explicit declaration of the law in Hexaware, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) 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 and the consequent notice to be issued under Section 148 of the Act, the Assessing Officer is required to adhere to the provisions of Section 151A read with the Notification. Thus, for a notice to be validly issued for reassessment under Section 148 of the Act, the Respondent-Revenue would need to be compliant with Section 151A, which has been interpreted and analysed in detail by a Division Bench ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itable technological tools including artificial intelligence and machine learning with a view to optimise the use of resources. Therefore, it means that the case can be allocated randomly to any officer who would then have jurisdiction to issue the notice under Section 148 of the Act. It is not the case of respondent no.1 that respondent no.1 was the random officer who had been allocated jurisdiction. 36 With respect to the arguments of the Revenue, i.e., the notification dated 29th March 2022 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as been laid before both House of Parliament is partly otiose and inapplicable. .. 37 When an authority acts contrary to law, the said act of the Authority is required to be quashed and set aside as invalid and bad in law and the person seeking to quash such an action is not required to establish prejudice from the said Act. An act which is done by an authority contrary to the provisions of the statue, itself causes prejudice to assessee. All assessees are entitled to be assessed as per law and by following the procedure prescribed by law. Therefore, when the Income Tax Authority proposes to take action against an assessee without following the due process of law, the said action itself results in a prejudice to assessee. Therefore, there i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Section 151A of the Act. It is therefore his submission that a different view of the matter be taken. We are not persuaded to accept such submission as the notification dated 29 March, 2022 would not in any manner control the substantive provision under Section 151A of the Act. Such provision as it stands under the Act has been interpreted by this Court in Hexaware, it is the purport of the provision, which is relevant. Thus, what has been issued under the notification dated 29 March, 2022, is the scheme implementing faceless mechanism as Section 151A read with Section 144B would provide. Thus, Mr. Suresh Kumar s contention need not detain us any further to follow the mandate of the law as laid down by this Court in Hexaware. 8. In the li ..... X X X X Extracts X X X X X X X X Extracts X X X X
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