AI Drafter 
TaxTMI 
TaxTMI 
2025 (11) TMI 51
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....7/2025; 3810/2025; 3940/2025; 4270/2024; 4285/2024; 4292/2024; 4296/2024; 4340/2024; 4341/2025; 4677/2025; 4780/2025; 4901/2024; 4991/2024; 5266/2024; 5385/2024; 5450/2025; 5452/2024; 5534/2025; 5538/2025; 5542/2025; 5543/2025; 5561/2025; 5564/2025; 5805/2025; 5866/2025; 5934/2025; 5936/2025; 6096/2025; 6161/2025; 6162/2025; 6304/2024; 6424/2024; 6605/2025; 6718/2025; 6731/2025; 7394/2024; 7694/2024; 7695/2024; 7704/2024; 7706/2024; 8129/2024; 8134/2024; 8164/2024; 8256/2024; 8266/2024; 8274/2024; 8281/2024; 8282/2024; 8283/2024; 8294/2024; 8295/2024; 8297/2024; 8372/2024; 8527/2024; 8649/2024; 8786/2025; 8795/2025; 8896/2025; 8944/2025; 8966/2025; 9006/2024; 9083/2024; 9128/2024; 9295/2024; 9476/2024; 9517/2024; 9657/2024; 9713/2024; 9726/2024; 9792/2024; 9794/2024; 9797/2024; 9801/2024; 9803/2024; 9805/2024; 9806/2024; 9944/2024; 10212/2024; 10349/2024; 10361/2024; 10367/2024; 10552/2024; 10579/2024; 10634/2024; 10635/2024; 10636/2024; 10651/2024; 10791/2024; 10807/2024; 11105/2024; 11168/2024; 11212/2024; 11214/2024; 11241/2024; 11254/2024; 11256/2024; 11341/2024; 11382/2024; 11391/2024; 11401/2024;11582/2024;11605/2024; 11652/2024; 11751/2024; 12324/2024; 12426/2024; 12452/2024....
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....3983/2025; 24016/2025; 24334/2025; 24339/2025;24536/2025; 25086/2025; 25482/2025; 26135/2025 and 26840/2025. For the Petitioner: A.V.A. Siva Kartikeya. For the Respondent: Vijay Kumar Punna. COMMON ORDER (PER HON'BLE SRI JUSTICE BATTU DEVANAND) Heard respective counsel appearing for the petitioners and the respondents in all Writ Petitions. Perused the material available on record. 2. As the issue involved in all these Writ Petitions is one and the same, all these Writ Petitions are disposed of by a common order. 3. All these Writ Petitions are filed under Article 226 of the Constitution of India, challenging the notices issued to the petitioners under Section 148-A(b) and orders passed under Section 140-(A)(d) of the Income Tax Act, 1961 and the consequential notices issued under Section 148 by the respondents. 4. For proper adjudication, of these cases, it is desirable and relevant to look into the background of "Faceless Assessment Scheme" under the Income Tax Act, 1961 as herein under: (i) The Finance Act, 2018 provides for making a Scheme to impart greater efficiency, transparency and accountability by eliminating interface between the assessin....
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....sment Scheme, 2022" on 29.03.2022 for assessment, re-assessment or re-computation under Section 147 of the Act and for issuance of notice under Section 148 of the Act through automated allocation as referred to in Section 148 of the Act for issuance of notice and in a faceless manner to the extent in Section 144(B) of the Act. Thus, re-allocation proceedings are brought into the faceless scheme with the incorporation of Section 151(A) of the Income Tax Act. (v) The procedure for the faceless assessment scheme has laid down in Section 144(B) of the Act is as herein under:- (a) The National Faceless Assessment Centre (NFAC) assigns case selected for faceless assessment through automated allocation system to assessment unit. (b) The National Faceless Assessment Centre (NFAC) intimates the assessee that assessment shall be completed in accordance with the procedure laid down in Section 144 (B) of the Act. (c) Notice is served to assessee through The National Faceless Assessment Centre (NFAC) under Section 143(2) or 142(1) of the Act and assessee may file his response within specified date mentioned in the notice to NFAC, which shall forward the same ....
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....sued by the National Faceless Assessment Centre (NFAC) or the Jurisdictional Assessing Officer (J.A.O)., the said notification speaks of the scope of the scheme with regard to the procedure covered by it and lays down the legal contours of how such procedures are to be carried out. It states that the issuances of notices under Section 148 of the Act, shall be through admitted allocation in accordance with the risk management strategy and that the assessment shall be in a faceless manner to the extent provided in Section 144 (B) of the Act. (ii) The learned Standing Counsel would contend that it is apparent that in the process for re-assessment, as it exceeds as on today, both are being followed accordingly, they would contend that it will be in correct to state that the issuance of notice by the Jurisdictional Assessing Officer is without jurisdiction. They further contend that since Section 144 (B) of the Act does not provide for issuance of notice under Section 148 of the Act, there can be no ambiguity in the fact that the Jurisdictional Assessing Officer still has the jurisdiction to issue notice under Section 148 of the Act. Accordingly, learned Standing Counsel submit....
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....me 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. 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. 36. With respect to the argument of the Revenue, i.e., the notification dated 29th March, 2022 provides that the Scheme so framed is applicable only 'to the extent' provided in Section 144B of the Act and Section 144B of the Act does not refer to issuance of notice under Section 148 of the Act and hence, the notice cannot be issued by the FAO....
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....ugned order and the notices issued by respondent No. 1 are not in compliance with the Scheme notified by the Central Government implementing the provisions of Section 151A of the Act. The Scheme, as tabled before the Parliament as per the requirements of the said provision, is in the nature of a subordinate legislation, which governs the conduct of proceedings under Section 148A as well as Section 148 of the Act. Thus, in view of the explicit declaration of the law in Hexaware Technologies Limited (supra), the grievance of the petitioner-assessee insofar as it relates to an invalid issuance of the impugned order and the notice is required to be accepted. 5. Learned Counsel for the parties agree that in this view of the matter, the proceedings initiated under Section 148 of the Act would not be sustainable and are rendered invalid in view of the judgment rendered in Hexaware Technologies Limited (supra)." (B). Further, it is very apt to refer the judgment of the High Court of Telangana in the case of Kanakanala Ravindra Reddy Vs. Income Tax Officer (2023) 156 taxmann.com 178 (Telangana), decided on 14.09.2023 whereby a batch of Writ Petitions were allowed and the proceed....