Swarn Singh Vs ITO (ITAT Amritsar)
Validity of Section 148 noticeby Jurisdictional Assessing Officer (JAO) instead of Faceless Assessing Officer
Issue: Validity of notice u/s 148 of the Income Tax Act by the Jurisdictional Assessing Officer (JAO) instead of Faceless Assessing Officer
Swarn Singh Vs ITO [IT APPEAL NO. 160 (ASR) OF 2024
Observations and Ruling:
1. The Tribunal held that as per the provisions of Section 151A and scheme framed u/s 151A (“E-Assessment of Income Escaping Assessment Scheme, 2022”) both issue of notice u/s 148 and completion of assessment or reassessment u/s 148 shall be made in a faceless manner.
2. The Tribunal analyzed the clause 3(b) of the said scheme which is reproduced hereunder:
“The Scheme provides that –
(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 making assessment or reassessment of total income or loss of assessee.
3. ITAT made the following key observations:
(i) The notice u/s 148 shall be in a faceless manner and the term “to the extent provided in Section 144B of the Act” is not relevant for issue of notice. The said phrase is applicable only with reference to assessment or reassessment.
(ii) 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.
4. The Tribunal held that the assessment framed under section 147 based on the notice issued under section 148 by the JAO is bad in law and the same is to be quashed as void ab initio.
