Court sets aside notice under Income Tax Act for AY 2015-16 due to non-compliance

The court set aside a notice issued under Section 148A(b) of the Income Tax Act, 1961, for AY 2015-16 due to non-compliance with CBDT instructions and Section 282A of the Act. The court found the notice unsustainable as it did not bear the officer's name and designation, ruling in favor of the petitioner. Additionally, the court emphasized compliance with CBDT Instruction No.1/2022, requiring Assessing Officers to provide information within 30 days. The correct title of the case was identified as "LSR Medical Pvt. Ltd. v. DCIT Circle 13(1) & Anr." and the writ petition was disposed of accordingly.

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Issues Involved:
The judgment concerns a writ petition related to Assessment Year (AY) 2015-16, focusing on the validity of a notice issued under Section 148A(b) of the Income Tax Act, 1961, and compliance with relevant instructions issued by the Central Board of Direct Taxes (CBDT).

Validity of Notice under Section 148A(b) of the Act:
The petitioner contended that the notice issued under Section 148A(b) of the Act lost its efficacy after a certain date, citing a Supreme Court judgment and an instruction issued by the CBDT. The petitioner argued that the notice did not bear the name and designation of the concerned officer, violating Section 282A of the Act. The court, considering the provisions of the CBDT instruction, held that the notice dated 02.06.2022 issued under Section 148A(b) of the Act was unsustainable and consequently set it aside. The order issued under Section 148A(d) of the Act was also set aside, allowing the respondents/revenue to proceed in accordance with the law.

Compliance with CBDT Instructions:
The court referred to Instruction No.1/2022 issued by the CBDT, emphasizing the requirement for Assessing Officers to provide information and material relied upon within 30 days for cases falling under certain criteria. The instruction outlined the procedure for compliance with the Supreme Court judgment, including the timeline for providing information to the assessee and the subsequent steps to be taken by the Assessing Officer. The court's decision was based on the petitioner's argument regarding the non-compliance with these instructions, leading to the setting aside of the notice and order in question.

Correcting Title of the Case:
During the proceedings, it was noted that the cause list did not accurately reflect the title of the case. The correct title was identified as "LSR Medical Pvt. Ltd. v. DCIT Circle 13(1) & Anr." and not as previously listed. The writ petition was disposed of based on the arguments presented by the petitioner, and the pending application was closed accordingly.

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