Calcutta HC Upholds Validity of Income Tax Notice; Dismisses Challenge on Jurisdictional Grounds for 2019-20 Assessment Year.

The HC of Calcutta dismissed the writ petition challenging the notice issued under Section 148 of the Income Tax Act, 1961, for the assessment year 2019-20. The petitioner argued that the notice should have been issued by the National Faceless Assessment Center (NFAC) as per Section 151A, rather than the jurisdictional assessing officer. The respondent countered this by citing a CBDT memorandum allowing concurrent jurisdiction between the jurisdictional officer and NFAC units. The court found the petition lacked merit, upholding the notice's validity (WPO 1549 of 2023).

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Issues involved: Challenge to notice under Section 148 of the Income Tax Act, 1961 based on jurisdictional grounds.

Summary:
The High Court of Calcutta heard a writ petition challenging an impugned notice dated 11th April, 2023, issued under Section 148 of the Income Tax Act, 1961 for the assessment year 2019-20. The petitioner contended that the notice was issued by the jurisdictional assessing officer and not by the National Faceless Assessment Center as required under Section 151A of the Act. The respondent argued that the mode of service does not impact the notice's validity and referred to an office memorandum dated 20th February, 2023, issued by the CBDT. The memorandum highlighted that both the jurisdictional assessing officer and units under NFAC have concurrent jurisdiction, and section 144B of the Act outlines the roles of NFAC and its units for assessment proceedings in a specific case. The Court, considering the submissions and the circular, found no merit in the petition and dismissed it (WPO 1549 of 2023).

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