Case Law Details
Baburao Jagnath Bawane Vs PCIT (Bombay High Court)
In a recent ruling, the Bombay High Court’s Nagpur Bench quashed a series of writ petitions challenging the authority of Jurisdictional Assessing Officers to issue notices under Section 148 of the Income Tax Act. The petitions argued that, per Section 151A, only Faceless Assessing Officers have the authority to issue such notices. The High Court agreed with the petitioners, nullifying not only the Section 148 notices issued by Jurisdictional Assessing Officers but also the subsequent assessment and penalty orders. The Court’s decision was guided by the precedent set in the Hexaware Technologies Ltd. case, where a similar issue was decided in favor of the petitioners. Additionally, the petitioners were granted permission to amend their petitions to further challenge Section 151A. This ruling reinforces the mandate that only designated Faceless Assessing Officers can issue notices under Section 148, thereby invalidating actions taken by unauthorized officials. The High Court’s decision is significant in upholding the procedural integrity of income tax assessments in light of recent amendments to the law.
FULL TEXT OF THE JUDGMENT/ORDER OF BOMBAY HIGH COURT
In Writ Petition Nos.4721/2023, 1191/2024 and 618/2024, the learned counsel for the petitioners seeks leave to add averments in respect of challenge to section 151-A of the Income Tax Act. Leave is granted. The amendment be carried forthwith. Mr. Parchure, learned counsel for the respondents, upon instructions, does not seek to consequentially amend the submissions on behalf of the respondents.
2. Mr. Parchure, learned counsel for the respondents, does not dispute that the issues in all these petitions is covered by the judgment of the learned Division Bench in Hexaware Technologies Ltd. v. Assistant Commissioner of Income Tax and others (Writ Petition No.1778 of 2023), decided on 03/05/2024, in view of which, all these petitions are disposed of in terms of what has been held in the Hexaware Technologies Ltd. (supra), as a result of which, all the consequential orders also do not survive.
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