2025 (6) TMI 1412 - HC - Income Tax

Section 148 notice quashed as Jurisdictional Officer lacked authority under CBDT Scheme requiring Faceless Officer issuance

Mansi Share and Stock Broking Private Limited Versus The Deputy Commissioner of Income Tax- Circle- 4 (3) (1), Mumbai and Ors.

The Bombay HC quashed a Section 148 notice issued by a Jurisdictional Assessing Officer, ruling it must be issued by the Faceless Assessing Officer per ... Validity of reopening of assessment - notice issued u/s 148 and the approval issued u/s 151 - as argued notice issued u/s 148 has been issued by the office of the DCIT Circle-4 (3)(1), Mumbai who is a Jurisdictional Assessing Officer, and not by the Faceless Assessing Officer, as contemplated under the Scheme u/s 151A - HELD THAT:- This Court has specifically held that the notice to be issued under Section 148 would have to be as per the Scheme floated by the CBDT dated 29th March 2022 and would have to be by the Faceless Assessing Officer. This Court has specifically held that the Jurisdictional Assessing Officer would have no jurisdiction to issue the notice under Section 148. We not only agree with this view but are bound by it. As pointed out to us that the decision in the Hexaware Technologies Ltd. [2024 (5) TMI 302 - BOMBAY HIGH COURT] is challenged before the Hon’ble Supreme Court and the same is pending. Rather than driving the Revenue to challenge even this order before the Hon’ble Supreme Court we are of the view that it would be more prudent if Rule is issued in the above Petition and interim relief is granted pending the hearing and final disposal of this Petition. Revenue is directed to file their affidavit in reply to the above Writ Petition within a period of 4 weeks from today and serve a copy to the learned Advocate for the Petitioner. The Bombay High Court, in a writ petition challenging the Section 148 notice dated 29th March 2025 issued by the Deputy Commissioner of Income Tax (a Jurisdictional Assessing Officer), held that such notice must be issued by the Faceless Assessing Officer as mandated by the CBDT Scheme dated 29th March 2022 under Section 151A of the Income Tax Act, 1961. Relying on its earlier decision in Hexaware Technologies Ltd. v. Assistant Commissioner of Income-tax [(2024) 162 taxmann.com 225], the Court reiterated that 'the Jurisdictional Assessing Officer would have no jurisdiction to issue the notice under Section 148.' Noting that the Hexaware decision is under Supreme Court consideration, the Court granted interim relief by staying the impugned notice and related proceedings pending final disposal of the petition or Supreme Court orders. The Revenue was directed to file a reply affidavit within four weeks. The Court emphasized adherence to the CBDT Scheme and maintained 'liberty to the parties to apply after appropriate orders are passed by the Hon'ble Supreme Court.'