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TMI Blog2024 (10) TMI 93X X X X Extracts X X X X X X X X Extracts X X X X ..... nt with Section 151A, which has been interpreted and analysed in detail by a Division Bench of this Court in the case of Hexaware Technologies Limited [ 2024 (5) TMI 302 - BOMBAY HIGH COURT ] wherein held Court held that 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. 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 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not by a Faceless Assessing Officer ( FAO ), as is required by the provisions of Section 151A of the Act. 4. It is now well settled that 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 of this Court in the case of Hexaware Technologies Limited Vs. Assistant Commissioner of Income Tax 4 Ors. (2024) 464 ITR 430 ( Hexaware ). The Division 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 reassessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... risdiction. 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 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 is no question of petitioner having to prove further prejudice before arguing the invalidity of the notice. [Emphasis Supplied] 5. Therefore, it is apparent that the Respondent-Revenue is not in compliance with the Scheme dated 29 March, 2022, 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 subor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 3 May, 2024. 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 ( Vikram Developers ) dated 10 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. 9. In our opinion, considering the fact that the impugned notice issued by the JAO was itself defective and without authority of law and the same was contrary to the provisions of Sect ..... X X X X Extracts X X X X X X X X Extracts X X X X
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