Notices Under Section 148 Invalid When Issued by Junior Assessing Officer, Violating Section 151A and Notification 29 March 2022

HC held notices issued under section 148 invalid where Junior Assessing Officer, not the Faceless Assessment Office, issued them, finding non-compliance with section 151A and the Central Government notification of 29 March 2022. Relying on precedent, the court found the JAO lacked jurisdiction to issue the impugned notices and therefore declared those notices illegal and invalid. The petition was allowed in favour of the assessee.

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Issues:
Challenge to notice issued under Section 148 of the Income Tax Act, 1961 for Assessment Year 2020-21.

Analysis:
The Writ Petition filed under Article 226 challenges the notice dated 30 March 2024 issued under Section 148 of the Income Tax Act, 1961, along with a prior notice and order under Section 148A (b) and an order under Section 148(A)(d). The impugned notice and order were issued by the Jurisdictional Assessing Officer (JAO) and not under the mandatory faceless mechanism as per Section 151A of the Act. The Court refers to the case of Hexaware Technologies Limited, highlighting that the faceless mechanism is mandatory, and the Scheme framed by the CBDT covers both issuance of notice under Section 148 and assessment/reassessment under Section 147. The Court emphasizes that when an authority acts contrary to law, the action must be quashed, and prejudice need not be proven by the petitioner. It is established that the impugned order and notices are not compliant with the Scheme, rendering them invalid.

The Court concludes that the impugned order and notices were not in compliance with the Scheme implementing Section 151A of the Act. As per the judgment in Hexaware Technologies Limited, the proceedings initiated under Section 148 are unsustainable due to the invalid issuance of the order and notices. Since the Jurisdictional Assessing Officer lacked jurisdiction, the writ petition is allowed, quashing the impugned notices and order. The Court clarifies that the decision is based on non-compliance with Section 151A and does not address other issues raised in the petition, keeping them open for future consideration.

In the final ruling, the Court allows the writ petition in terms of the prayer clause, issuing a Writ of Certiorari to quash the impugned notices and order. The judgment makes it clear that no opinion is expressed on other issues raised in the petition, and the rule is made absolute without any costs.

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