Venkataramana Reddy Patloola Vs DCIT (Telangana High Court)
Telangana High Court held that notice issued u/s. 148 of the Income Tax Act must comply with the requirement of the Scheme whether or not the Taxpayer is NRI/Indian Citizen. Thus, issuance of notice to NRI u/s. 148 without following mandatory faceless procedure is set aside.
Facts- The singular and pivotal question raised in these Writ Petitions filed under Article 226 of the Constitution is whether show cause notices issued under Section 148 of the Income Tax Act, 1961 (for short, the Act) in matters relating to international tax charges are exempted to follow the statutory faceless procedure?
Conclusion- Taxpayer is nowhere distinguished between NRIs and Indian Citizens. The notice issued under Section 148 must comply with the requirement of the Scheme whether or not the Taxpayer is NRI/Indian Citizen.
Held that the respondents have erred in not following the mandatory faceless procedure as prescribed in the scheme dated 29.03.2022. Since notices under Section 148 of the Act were not issued in a faceless manner, the entire further proceeding founded upon it and assessment orders stand vitiated. Thus, the impugned notices under Section 148 of the Act and all consequential assessment orders based thereupon are set aside.
