2024 (8) TMI 1609

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....ice dated 29 November, 2023 ("impugned notice") issued to the Petitioner under Section 148 of the Income Tax Act, 1961 ("the Act"), and also the underlying prior notice and order under Section 148A(b) and Section 148A(d) of the Act, respectively. The reassessment under Section 148 of the Act has been initiated in respect of returns filed by the Petitioner-Assessee for the Assessment Year 2021-22. 3. On perusal of the record, it is apparent that the impugned notice dated 5 September, 2023 issued under Section 148A(b), the order passed thereon under Section 148A(d) dated 29 November, 2023 and the consequent notice dated 29 November, 2023 issued under Section 148 of the Act are all issued by the Jurisdictional Assessing Officer ("JAO") and no....

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....es are issued by the FAO, it would be open to an assessee to make submission before the JAO and vice versa, which is clearly not contemplated in the Act. Therefore, there is no question of concurrent jurisdiction of both FAO or the JAO with respect to the issuance of notice under Section 148 of the Act. The Scheme dated 29 th 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 usin....

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....t and accordingly, it is only the FAO which can issue the notice under Section 148 of the Act and not the JAO. The argument advanced by respondent would render clause 3(b) of the Scheme otiose and to be ignored or contravened, as according to respondent, even though the Scheme specifically provides for issuance of notice under Section 148 of the Act in a faceless manner, no notice is required to be issued under Section 148 of the Act in a faceless manner. In such a situation, not only clause 3(b) but also the first two lines below clause 3(b) would be otiose, as it deals with the aspect of issuance of notice under Section 148 of the Act. Respondents, being an authority subordinate to the CBDT, cannot argue that the Scheme framed by the CBDT....

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....oceedings have been initiated, vitiates the proceedings. 6. Learned Counsel for both the parties agree that the proceedings initiated under Section 148 of the Act would not be sustainable in view of the judgment rendered in Hexaware. Learned Counsel for the Petitioner-Assessee has also drawn our attention to a recent decision of this Court in Nainraj Enterprises Pvt. Ltd. Vs. The Deputy Commissioner of Income Tax, Circle- 4(3)(1), Mumbai & Ors. (Writ Petition (L.) No. 16918 of 2024 dt. 2-07-2024), whereby in similar circumstances, this Court has allowed the petition considering the provisions of Section 151A of the Act. 7. Learned counsel for the petitioner has also drawn our attention to the decision of this Court in Kairos Properties Pv....