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TMI Blog2024 (9) TMI 1313X X X X Extracts X X X X X X X X Extracts X X X X ..... it was not permissible for the Jurisdictional Assessing Officer to issue a notice under Section 148, as the same would amount to breach of the provisions of section 151A of the IT Act. Decided in favour of assessee. - G. S. KULKARNI SOMASEKHAR SUNDARESAN, JJ. For the Petitioner : Mr. P.J. Pardiwalla, Senior Advocate, a/w Jeet Kamdar,. For the Respondents : Ms. Swapna Gokhale,. PC: 1. Rule. Rule made returnable forthwith. Learned Counsel for the Respondents waives service. By consent of the parties, heard finally. 2. This Writ Petition under Article 226 of the Constitution of India has been filed to challenge a notice dated 7 April, 2022 ( impugned notice ) issued to the Petitioner under Section 148 of the Income Tax Act, 1961 ( the Act ) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ision Bench has 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 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment 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 rende ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 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. 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 sustai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the decisions of this Court in the cases of Hexaware and Kairos Properties. 9. In the light of the above discussion, and as there is no dispute that the JAO had no jurisdiction to issue the impugned notice, the Writ Petition is accordingly allowed in terms of prayer clause (a) which reads thus : a. this Hon ble Court be pleased to issue a writ of certiorari or a writ in the nature of Mandamus or any other writ, order or direction under Article 226 of the Constitution of India calling for the records of the Petitioner s case and after examining the legality and validity thereof quash and set aside the order under section 148A (d) (Exhibit J ) and notice under section 148 of the Act (Exhibit K ) both dated 7th April 2022 and notice under sec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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