TaxTMI 
TaxTMI 
2024 (7) TMI 511
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....tion of India essentially prays for quashing and setting aside an order dated 10 April 2024 passed by respondent No.1 under Section 148A(d) of the Income Tax Act (for short "the IT Act") and the consequent notice dated 10 April 2024 issued by respondent No.1 under Section 148 of the IT Act, re-opening the petitioner's assessment. The substantive prayers as made in the petition are required to be noted which reads thus: "(a) this Hon'ble Court be pleased to issue a Writ of Certiorari or a writ in the nature of Certiorari or any other writ, order or direction under Article 226 of the Constitution of India calling for the records pertaining to the Petitioner's case and after going into the validity and legality thereof be pleased to q....
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....mpugned notice dated 10.04.2024 issued under Section 148 of the Act (Exhibit "A"); 3. It is the petitioner's case that the petitioner filed its return of income for the Assessment Year 2017-18 on 6 November 2017 inter alia declaring a total income of Rs.8,36,740/-, indicating a net loss of Rs.11,31,588/- under the head "Profit and Gains from Business and Profession". It is also contended that on 17 August 2018, the petitioner was issued a notice under Section 143(2) of the IT Act, intimating the petitioner that his return of income was selected for scrutiny assessment. Thereafter, a notice dated 30 September 2019 was issued to the petitioner under Section 142 (1) of the IT Act, whereby the petitioner was called upon to provide the releva....
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.... the Act should not be issued. On 4 April 2024 the petitioner filed a detailed response to such notice. It is the case of the petitioner that without considering the contentions as raised by the petitioner, Respondent No.1 has passed the impugned order dated 10 April 2024, proposing to reassess the income of the petitioner. 6. It is on the above backdrop, we have heard learned counsel for the parties and with their assistance perused the record. 7. At the outset, learned counsel for the petitioner would submit that the impugned notice being issued by the Jurisdictional Assessing Officer (JAO) would be invalid and illegal being in the teeth of the provisions of Section 151A of the Income Tax Act, 1961. This in as much as in pursuance o....
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....he power to the Central Board of Direct Taxes ("CBDT") to notify the Scheme for : (i) the purpose of assessment, reassessment or recomputation under Section 147; or (ii) issuance of notice under Section 148; or (iii) conducting of inquiry or issuance of show cause notice or passing of order under Section 148A; or (iv) sanction for issuance of notice under Section 151; so as to impart greater efficiency, transparency and accountability by inter alia eliminating the interface between the Income Tax Authorities and assessee. Sub-section 3 of Section 151A of the Act also provides that every notification issued under sub-section (1) and (2) of Section 151A of the Act shall be laid before each House of Parliame....
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....s and assessee. Sub-section 3 of Section 151A of the Act also provides that every notification issued under sub-section (1) and (2) of Section 151A of the Act shall be laid before each House of Parliament. 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 Scheme provides that - (a) the assessment, reassessment or recomputation under Section 147 of the Act, (b) and the 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 t....
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....hether 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. Therefore, it means that the case can be allocated randomly to any officer who would then have jurisdiction to issue the notice under Section 148 of the Act. It is not the case of respondent no.1 that respondent no.1 was the random officer who had been allocated jurisdiction. 37 When an authority acts contrary to law, the said act of the Authority is required to be quashed and set aside as invalid and bad in law and the person seeking t....