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2024 (7) TMI 176

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.....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) is illegal in view of the fact that the escapement of income....

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....ly 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, and in a faceless manner, to the extent provided in section 144B of the Act with reference to ....

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....napshot 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 notification No 18/2022 dated 29.03.2022 is placed at page no 19 of the PB. The Scheme provides that - (a) the assessment, reassessment or re-computatio....

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....stion 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 suitable technological tools including artificial intelligence and machine learning with a view to optimise the use of resources. Meaning thereby that the case can be al....

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....ough 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 of the Act would also apply under the Scheme. Further the exceptions provided in sub-section (7) and (8) of Section 144B of the Act would also be applicable to the Scheme. ....