Shyam Sundar Saw Vs Union of India through Secretary (Jharkhand High Court)
The Jharkhand High Court addressed a petition challenging a notice issued under Section 148 of the Income Tax Act, 1961 by the Jurisdictional Officer (4th respondent). The petitioner contended that the notice, dated 31.08.2024, was issued without jurisdiction, as it did not comply with Section 151A, introduced in the Act effective 01.11.2020, and the related notification dated 28.03.2022. Section 151A and the associated scheme mandated an automated allocation system for reassessment notices based on a risk management strategy formulated by the Central Board of Direct Taxes (CBDT). The petitioner argued that there was no evidence that the officer issuing the notice had been allocated the case through this prescribed automated system.
The court referenced a similar ruling by the Telangana High Court in Kankanala Ravindra Reddy v. ITO [2023] 156 com 178/295 Taxman 652, which held that reassessment proceedings under Sections 147, 148, and 148A must be conducted in a faceless manner, as prescribed by the 2022 schemes. The Telangana court emphasized that notices must be issued through the automated allocation system, and any deviation from this statutory procedure renders the notice invalid. The judgment stressed the principle that statutory powers must be exercised strictly as prescribed, without substitution or discretion outside the law.
