Nitin Enterprises Vs ITO (Telangana High Court)
Telangana High Court held that initiation of reassessment proceeding by issuance of notice without following faceless procedure is bad-in-law. Accordingly, notice issued u/s. 148A and section 148 of the Income Tax Act cannot be sustained.
Facts- This is a writ petition where the proceedings are either challenged to the notices which were issued u/s. 148A and 148 of the Income Tax Act, 1961 or the assessment orders those have been passed u/s. 147 of the Act which have been assailed.
This writ petition is being taken up today only on one of the grounds, that the notices issued u/s. 148A of the Act and the subsequent initiation of proceedings u/s. 148 of the Act by the jurisdictional Assessing Officer, whereas in terms of the amendment that was brought to the Income Tax Act by way of Finance Act, 2021 w.e.f., 01.04.2021 onwards, proceedings u/s. 148A of the Act as also u/s. 148 of the Act ought to have also been issued and proceeded in a faceless manner.
Conclusion- Held that since we are inclined to dispose of the instant writ petition, conscious of the fact that the earlier order of this High Court in the case of Kanakala Ravindra Reddy is subjected to challenge before the Hon’ble Supreme Court in SLP No.3574 of 2024, preferred by the Income Tax Department, we make it clear that allowing of the instant writ petition is subject to outcome of the aforesaid SLP preferred by the Revenue against the decision of this High Court in the case of Kanakala Ravindra Reddy. This, in other words, would mean that either of the parties, if they so want, may move an appropriate petition seeking revival of this writ petition in the light of the decision of the Hon’ble Supreme Court in the pending SLP on the very same issue.
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