TaxTMI 
TaxTMI 
2024 (7) TMI 176
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....ent Order dated 29.12.2023 passed u/s 147 r.w.s. 144/144 of the Act by the NFAC (Delhi) in respect of the Assessment Year: 2016-17. 2. The ld. counsel for the assessee has taken additional grounds of appeal vide its application dated 06.05.2024: "12. That the CT(A) has erred in confirming the addition made by the AO without appreciating the fact that the assessment framed u/s 147 is bad in law as the notice u/s 148 was issued by the jurisdictional AO and not by NFAC. That the assumption of jurisdiction by the Ld. AO u/s 148 is in violation of mandatory jurisdictional conditions as stipulated in Notification No 18/2022 dated 29th March, 2022. 13. That the CIT(A) has erred in not appreciating that the Notice u/s 148A(b) i....
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....hat the order u/s 148A(d) was passed on 16.03.2023 and subsequently the notice was issued u/s 148 dated 16.03.2023 by Jurisdictional AO is bad in law. In support, the Ld. AR has file a written synopsis with citation placed on record, In support of the notification No 18/2022 dated 29.03.2022 (APB, Pg. 19) on scope of new Scheme he submits as under: - 3. Scope of the Scheme.--For the purpose of this Scheme,-- (a) assessment, reassessment or recomputation under section 147 of the Act, (b) issuance of notice under section 148 of the Act, shall be through automated allocation, in accordance with risk management strategy formulated by the Board as referred to in section 148 of the Act for issuance of notice, a....
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....usal of the copy of notice issued u/s 148, it is noted that the notice was issued by jurisdictional AO i.e. ITO Ward, Katra and not by NFAC. The snapshot of the notice is produced for reference hereunder: 8. From the above, it is evident that the notice u/s 148 issued by the jurisdictional AO and the order passed u/s 148A(d) by the jurisdictional AO are bad in law as the same are in violation of notification No 18/2022 issued by CBDT dated 29th March 2022 and against the provisions of section 151A. 9. In exercise of the powers conferred by sub-sections (1) and (2) of Section 151A of the Act, CBDT issued a notification dated 29th March, 2022 [Notification No.18/2022/F. No.370142/16/2022-TPL and formulated a Scheme. The copy of the noti....
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....ssued by the FAO, it would be open to an assessee to make submission before the JAO and vice versa, is clearly not contemplated in the Act. Therefore, there is no question of concurrent jurisdiction of both FAO and the JAO with respect to the issuance of notice under Section 148 of the Act. 11. That the Scheme dated 29th March 2022 in paragraph 3 clearly provides that the issuance of notice "shall be through automated allocation" which means that the same is mandatory and is required to be followed by the Department and does not give any discretion to the Department to choose whether to follow it or not. That automated allocation is defined in paragraph 2(b) of the Scheme to mean an algorithm for randomised allocation of cases by using s....
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.... notice, the term "to the extent provided in Section 144B of the Act" is not relevant. The Scheme provides that the notice under Section 148 of the Act, shall be issued through automated allocation, in accordance with risk management strategy formulated by the Board as referred to in Section 148 of the Act and in a faceless manner. Therefore, "to the extent provided in Section 144B of the Act" does not go with issuance of notice and is applicable only with reference to assessment or reassessment. The phrase "to the extent provided in Section 144B of the Act" would mean that the restriction provided in Section 144B of the Act, such as keeping the International Tax Jurisdiction or Central Circle Jurisdiction out of the ambit of Section 144B o....