Wp/11942/2023 Of Mahendra Kumar Agarwal v. Deputy Commissioner Of Income Tax

HIGH COURT FOR THE STATE OF TELANGANA (Special Original Jurisdiction) TUESDAY, THE TWENTY SIXTH DAY OF SEPTEMBERTWO THOUSAND AND TWENTY THREE PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHYANDTHE HONOURABLE SRI JUSTICE LAXMI NARAYANA ALISHETTY WRIT PETITION NO: ['11942 ]OF 2023 Between: Mahendra Kumar Agarwal, S/o, Late Shri PrabhuDayal Agantal, Aged about69 Years, # 2A, 8-2-41511, Road No. 4, Banjara Hills, Hyderabad, Telangana-500034. ...PETITIONER AND 1Deputy Commissioner Of lncome Tax, Circle 2(1),Hyderabad, 514, Sth Floor,Signature Towers, Sy. No. 6(P) of Kondapur, Opp. Botanical Gardens,Serilingampally(M), Hyderabad, Telangana [- ]500084Signature Towers, Sy. No. 6(P) of Kondapur, Opp. Botanical Gardens,Serilingampally(M), Hyderabad, Telangana [- ]500084 2The Piincipal Commissioner of lncome Tax - 2, l.T. Towers, AC Guards,Masab Tank, Hyderabad, Telangana 500004.Masab Tank, Hyderabad, Telangana 500004. ...RESPONDENTS Petition under Article 226 ol the Constitution of lndia [praying ]that in thecircumstances stated in the affidavit filed therewith, the High Court may bepleased to issue an appropriate writ, order or direction more particularly one inthe nature of Writ of Mandamus, declaring the impugned order u/s 148A(d) of theAct, dt.31.03.2023, passed by the ['1st ]respondent for A.Y. 2019-20, videDocument ldentification No.(DlN) ITBA/AST/F/148A12022-2311O5181 1380(1), asvoid, illegal, and contrary to the Provisions of lncome-tax Act and contrary to thePrinciples of Natural Justice. lA NO: 1 OF 2023 Petition under Section 151 CPC praying that in the circumstances statedin the affidavit filed in support of the petition, the High Court may be [pleased ]tostay all further proceedings pursuant to the impugned Order u/s 14BA(d) of the Act,dt.3l.03.2023passedbythelstrespondentforAY'2019-20'videDocument ldentification [No.(DlN) ITBA/AST/F/148A ][12022-231 ][1051811380(1).] lA NO: 2 OF 2023 Petition under section [151 ] [praying ][that ][in ][the ][circumstances ][stated]in the affidavit filed [in ][support ][of the ][petition, ][the ][High ][court ][may be pleased ][to]issue a writ, order [or ][direction, more particularly ][one in the ][nature ][of ][writ ][of]Mandamus, declaring [the ][impugned ][Order ][u/s ][148A(d) ][of ][the Act, ][dated]31 .O3.2O23, [passed ][by the ][1st ][respondent ][for ][A.Y. ][2019-20, ][vide ][Document]tdentification No. [(DlN)ITBAlASr,Fl148At2O22-231 ][1051811380(1 ][), ][as ][well ][as the]notice issued U/s. [148 ][dated ][31.03.2023 ][of ][the ][Act, ][vide Document ldentification]No.(DlN)ITBA/AST/S/1481t2o22-23/105'1813536(1),asvoid,illegal,andto the [Provisions ][of ][lncome-tax ][Act ][and ][contrary ][to ][the ][Principles ][of]contrary Natural Justice, [and consequently set-aside/quash the same'] Counsel for the [Petitioner: ] Counsel for the Respondents: [J.V.PRASAD, Sr. SC ] [lT]The Court made the [following: ] t\ ]'HE HON'BI,E SRI JUSI'ICE P.SAM KOSHY ANT) THE [ION'BLE SRI JUSTICE LAXMI NARAYANA ALISHETTYWRIT PETITION No.l 1942 of 2023 COMMON ORDER[(par ]l*ttt hla [i'i .hrsti* I>.SAM KOSHYl Heard Mr.Manmohan Dundu, learned counsel lor the pctil_ionerand Mr.J.V.Prasad, leamed Senior Standing Counsel lbr rhercspondcnts. Perused the material on record 2. lt has been inlormed that one of the preliminary objections raisedb1. the petitioner has been recently answered by this Division Bcnch inNo l-5903of 2022 and batch which was decidetl r ide ordcrb1. the petitioner has been recently answered by this Division Bcnch inNo l-5903of 2022 and batch which was decidetl r ide ordcrt.+.09.1011 t\ ]'HE HON'BI,E SRI JUSI'ICE P.SAM KOSHY ANT) THE [ION'BLE SRI JUSTICE LAXMI NARAYANA ALISHETTYWRIT PETITION No.l 1942 of 2023 COMMON ORDER[(par ]l*ttt hla [i'i .hrsti* I>.SAM KOSHYl Heard Mr.Manmohan Dundu, learned counsel lor the pctil_ionerand Mr.J.V.Prasad, leamed Senior Standing Counsel lbr rhercspondcnts. Perused the material on record 2. lt has been inlormed that one of the preliminary objections raisedb1. the petitioner has been recently answered by this Division Bcnch inNo l-5903of 2022 and batch which was decidetl r ide ordcrb1. the petitioner has been recently answered by this Division Bcnch inNo l-5903of 2022 and batch which was decidetl r ide ordcrt.+.09.1011 .l- lrr r icu ot'thc dccision of this Division Bench in the albre said rirrtpetitions. and since the preliminary objection being thc saure. rheimpugned notice and the consequential orders srands setas ide ,'t1r.rashed. Ilowever, the right of the Department w.ould standrese r''"cd as has been protected in the batch matters which iicrc dccidedorr 14.09.2023 in W.P.Nos.25903 of 2022 and barchpetitions. and since the preliminary objection being thc saure. rheimpugned notice and the consequential orders srands setas ide ,'t1r.rashed. Ilowever, the right of the Department w.ould standrese r''"cd as has been protected in the batch matters which iicrc dccidedorr 14.09.2023 in W.P.Nos.25903 of 2022 and barch 1. .,\ccordinqlv. this writ petition stands allowed I \ 5. As a setprel. uriscellancous applicatiorrs pc:tding if any ir this [,,,r,rit] petition, shall stand closed. No order as to costs SD/-B.SARASWATHIASSISTAT REGISTRARs*rou oFFrcER //TRUE COPY// To, 1. The Deputy Commissioner [Of lncome Tax, Circle 2(1),Hyderabad' ][514' ][sth]Floor, dignature Towers, [Sy. No. 6(P) ][of Kondapur, ][Opp ][Botanical Gardens']Serilingampally(M), [Hyderabad, Telangana ]- [500084.]Floor, dignature Towers, [Sy. No. 6(P) ][of Kondapur, ][Opp ][Botanical Gardens']Serilingampally(M), [Hyderabad, Telangana ]- [500084.] 2. The Principal 6ommissioner [of lncome ][Tax - 2,1.T. ][Towers, AC ][Guards,] . Masab Tank, Hyderabad, [Telangana ][500004.] 3. One CC to SRI [DUNDU MANMOHAN, Advocate ][ ] 4. One CC to SRI [J.V.PRASAD, ][Sr ][SC FOR lT ] 5. Two CD CoPies BSRsB,{^_=-_ I HIGH COURT DATED: 2610912023 ORDERWP.No.11942 of 2023-, [. ];.! j .-- ,.'--.17 oill [2m]"i.'i!),.,/t-..."ll .l, ALLOWING THE WRIT PETITION, WITHOUT COSTS(1,)N\|.o\-) THE HON'BLE SRI JUSTICE P.SAM KOSHYAND THE HON'BLE SRI WSTICE LAXMI NARAYANA Writ Petltion I{os.259O324214 2427L 32075 32090 3268833050 33402 33474 3410() 34101 34340[34598 34604]3,4661.34698, 34746. 34836. 35774.3659E, 36828.36945.374t4. 37491, 37536.43427. 45,047 of 2022. Writ PetitionNos.15383.47. 3719. 3721, 3729, 3738, 9695. [11599. ][144a5.]14492 ts42l L5736 L5745 15768 t5779[16164 16223]16224. L6?61, 16783, 19966. [2o,9 ]14, 20929, 20959and 23556 of2023 COMMON ORDER:Hon'bLe Si [Justice P.SAM ][KOSH$] lper These batch of writ petitions have been frled assailing the order passed by the respondent No.l/The Income Tax Offrcer [dated]29.O7.2022, vide DIN & Notice [No.ITBA/COM ]/Fl17 12022-23/1044297902(1) for the assessment [year 2016-17, ][under ][Section]148-A (d) of the Income Tax Act, [1961 ][(for ]short 'the [Act'). ][The]challenge is also to the consequential notice [dated ][29.07.2022, ][und'er]Section 148 of the Income Tax [Act, ][as ][well, issued by ][the ][respondent]No. I himself. 2. Heard Sri A.V, Krishna Kaundinya, [learned ][Senior ][Counsel]appearing on behalf of Sri A-V.A. [Siva ][Kartikeya, learned counsel ][for]the petitioner and Sri J.V. Prasad, [learned counsel ][for ][the respondent-]Department. 3. Though the aforesaid two orders have been assailed on variousgrounds, nonetheless, the foremost objection which the petitionershave raised is that of the two orders being in contravention of theamended provision of the Income Tax Act, 196 I . 2. Heard Sri A.V, Krishna Kaundinya, [learned ][Senior ][Counsel]appearing on behalf of Sri A-V.A. [Siva ][Kartikeya, learned counsel ][for]the petitioner and Sri J.V. Prasad, [learned counsel ][for ][the respondent-]Department. 3. Though the aforesaid two orders have been assailed on variousgrounds, nonetheless, the foremost objection which the petitionershave raised is that of the two orders being in contravention of theamended provision of the Income Tax Act, 196 I . 4. The objection speciflcally was that once when the respondentNo.l have decided to go in for re-assessment of the return submittedby the petitioner/ assessee and notice for the same under Section148,at of the Act was issued, it was incumbent upon the respondentNo. I to have adhered to the amended provision of the nct. Accordingto the learned Senior Counsel for the petitioner it was required to getthe re-assessment done in a faceless manner, rather than beingassessed by the jurisdictional officer as has been provided underSection 7448 of the Act and in accordance wrth the scheme enactedby the Central Government under Section 151A of the Act. There wereother objections also raised by the petitioners in this batch of writpetitions. But, since the aforesaid objections rvas substantiallytouching the jurisdictional issue itsetf, the learned Senior Counselappearing for the petitioner requested for considering and decidingthe aforesaid preliminary objection hrst. Further only if required andin case, the preliminary objection is held to be not sustainable, wouldthere be a requirement for this Court to proceed furthr:r and decidethe other issues raised. 5. In view of the request made by the learned Senior Counselappearing for all the [petitioner ]and [which ][was ][accepted ][by the ][Iearned]counsel for the respondent, we [proceed ]to [decide ]the [aforesaid]jurisdictional issue as a preliminary issue and only if required wouldwe then proceed further to decide the other issues. 6. The preliminary objection raised by [the petitioner which is ][being]considered as the foremost issue is, ["whether ]the [impugned ][order]under Section l48A [(d) ]as [well ][as ][the notice ][under ][Section ][148 ][of ][the]Act could be issued by the local [jurisdictional ][officer, ][rather than ][the]faceless assessment." The issue in [other ][words was "whether was ][it]not mandatory for the authorities [concerned ][to ][initiate ][proceedings]pertaining to re-assessment under Section [148A ][and ][148 ][of the ][Act ][in]a faceless manner, (rather than [being ][proceeded ][by the ][local]jurisdictional oflicer), as is envisaged under Section 144El as alsounder Section l51A of the [Act."] 7. Learned Senior Counsel appearing [for ][the ][petitioner ][stressed]hard on the fact that subsequent [to ][the ][amendment incorporated ][in]the Income Tax Act, 96 [t ], [with ][effect ][from ][29 ][.O3.2O22 ][all ][the]proceedings initiated by the authorities concerned under [Section]148A and 148 of the Act [were ][all ][mandatorily ][to ][be ][proceeded ][in ][a]faceless manner. Else, the [same ][would ][amount ][to ][being violative of]the Income Tax Act or in [contravention ][to ][the ][procedure ][prescribed]under law which is in [force-] 7. Learned Senior Counsel appearing [for ][the ][petitioner ][stressed]hard on the fact that subsequent [to ][the ][amendment incorporated ][in]the Income Tax Act, 96 [t ], [with ][effect ][from ][29 ][.O3.2O22 ][all ][the]proceedings initiated by the authorities concerned under [Section]148A and 148 of the Act [were ][all ][mandatorily ][to ][be ][proceeded ][in ][a]faceless manner. Else, the [same ][would ][amount ][to ][being violative of]the Income Tax Act or in [contravention ][to ][the ][procedure ][prescribed]under law which is in [force-] 8. According to the learned Senior Counsel appearing for thepetitioner once when the Central Board of Direct Taxes (for short'CBITJ, have issued the notification dated 29 .O3.2O22, whereby ascheme called e-assessment of Income Escaping Assessment Scheme2022 wlrich carne into force with effect from 29.03.2022 itself; theassessment, re-assessment or re-computation under Section 147 and-the issuance of notice under Section 148A shall be done through theautomated allocation. Further the notices, to be issued, have to be ina faceless manner as is provided under Section l44B of the Act. Itwas also contended that the re-opening proceedings first of all couldnot have been initiated after a gap of three (3) years. Secondly, re-opcning of the proceedings can only be permittect if the incomechargeable to tax escaping assessment is ln()rc th:rn fiftyRs.5O,OO,O00/-. 9. lt was further contended by the learned Sen ior Counselappearing for the petitioner that the respondent No. t has acted in amechanical and arbitrar5r fashion while issuing notic<:s through thejurisdictional officer. The said Act was without taking intoconsideration the amended provision under the Income Ta-x Act, 1961,as introduced under the Finance Act,2O2l.lt was also without properverification of whether the so called income which has escapedassessment exceeds Rs.50,O0,OO0/- or morc. 1(). Learned counsel for the respondent-Department on the otherhand opposing the petition submits that it is not the case where anotice has been recently issued to the petitioner subsequent to theamendment brought in to the Act. According to him in all these cases,notices were issued prior to the amendment which had come. Assuch, the proceedings also have been drawn in terms of the un-amended provision. Moreover, the fact that no further approval wasrequired to issue notices at this stage by the Assessing Oflicer lendssupport to the contention of the respondent-Department that theaction on the part of the jurisdictional officer in initiating theproceedings was proper, legal and justihed. 11. It was also the contention of the respondent-Department thatunder the provisions of the Act both the JAO as well as units underNFAC have concurrent jurisdiction- The Act does not distinguishbetween JAO or NFAC with respect to jurisdiction over a case. This isfurther corroborated by the fact that under Section 144El of the Act,the records in a case are transferred back to the JAO as soon as theassessment proceedings are completed. So, section l44B of the Actlays down the role of NFAC and the units under it for the specificpurpose of conduct of assessment proceedings in a specifrc case in aparticular assessment year. This cannot be construed to mean thatthe JAO is bereft of the [jurisdiction ]over a particular assessee or withrespect to procedures not falling under the ambit of Section 1448 of the Act. Since, section 1448 of the Act does [not ][provide ][for ][issuance]of notice under Section 148 of the [Act, ][there can be no ][ambiguity in]the fact that the JAO still has the [jurisdiction to ][issue notice under]Section 148 of the Act. the Act. Since, section 1448 of the Act does [not ][provide ][for ][issuance]of notice under Section 148 of the [Act, ][there can be no ][ambiguity in]the fact that the JAO still has the [jurisdiction to ][issue notice under]Section 148 of the Act. 12. It was further contended by the learned [counsel ][for ][the]that the said notification [does ][not ][state]respondent-Department whether the notice is to be the scope of the scheme [with ][regards ][to]the procedure covered by it and lays down the [legal ][contours ][of ][how]such procedures are to be carried out. It states that [the ][issuance ][of]notice under Section 148 of the Act shalt be through [automated]allocation in accordance with the risk maaagement [strates,' ][and ][that]the assessment shall be in a faceless manner [to the ][extent ][provided]uncler Section l44B of the Act. From the above, it [is apparent ][that ][rn]the procedure for re-assessment, as it exists [as ][on date, ][both ][these]can be followed. Therefore, it will be incorrect to state [that ][the]issuance of notice by the JAO is without [jurisdiction.] 13. According to the learned counsel for the [respondent]Department neither the Section nor the scheme [dated, ][29 ][-O3 ][-2022]speak about the detail specifics of the [procedure ]to be [followed]therern. They lay down the general principles that [should ][be ][followed]so as to impart greater efficiency, transparency and [accountability ][to]the procedures contained therein. The said scheme lays down [that ][the]issuance of notice under Section 148 of the Act sl'rall be [through] automated allocation in accordance with Section l44B ol the Act. Itwas also submitted that the CBIT has issued notiltc atiorr No.Ol 12022dated 1 1.O5.2O22 containing guidelines for implementation of theHontle Supreme Court's [judgement ]in the case of Union of India andOthers us. Ashrbh Aganual. Vide the said [judgment, ]the Hon'loleSupreme Court revived nearly 9O,OOO notices issued under Section148 between Ol.O4.2O2l to 3O.06.2021 re-opening assessment for theassessment year 2Ol3-14 ard subsequent [years. ]It is to be stated thatthese notices were issued under the old provisions of re-opening. TheHontle Supreme Court had revived these notices quashed by certainHigh Courts by converting the notices issued under Section la8 [(old)]to notice under Section 148A (new) of the Act with a direction tocontinue the proceedings after following the procedure laid downunder the provisions. As such, the instruction No.Ol /2022 of CBIT,the present notice under Section 148 dated 31.O7.2022 and the orderunder Section 148A(d) daled 29.07.2022 are valid actions on the [part]of the Department. 14. It was further contended that the order passed under Section148A(d) of the Act is not a final assessment order [and ]the noticeissued under Section 148 is only to commence the re-assessmentproceedings and the assesse has the re-course of filing appeal beforethe CIT (Appeals) when the final order ofassessment [is ][passed.] 15. According to the learned counsel for the [respondent-]Department the order passed under Siition 148A(d) [and the ][notice]under Section 148 of the Act dated 29.O7 .2022 [were ][passed/issued ][as]per the provisions of the Act with appropriate sanction, after [giving]due opportunity to the petitioner, and after considering [the]submissions of the assessee. It is submitted that no [prejudice ][is]caused to the petitioner as the order passed under Section [i48A(d) of]the Act is not an assessment order and only an order to [determine]whether it is a fit case for issuance of notice under Section 148 of theAct. 15. According to the learned counsel for the [respondent-]Department the order passed under Siition 148A(d) [and the ][notice]under Section 148 of the Act dated 29.O7 .2022 [were ][passed/issued ][as]per the provisions of the Act with appropriate sanction, after [giving]due opportunity to the petitioner, and after considering [the]submissions of the assessee. It is submitted that no [prejudice ][is]caused to the petitioner as the order passed under Section [i48A(d) of]the Act is not an assessment order and only an order to [determine]whether it is a fit case for issuance of notice under Section 148 of theAct. 16. Having heard the contentions put forth on either side and [on]perusal ol records, what is now required to be considered is theiactuai matnx of the case. Admitteciiy, the notices were issueci uncierSection 148 of the Act between OL.O4.2O21 to 31.06.2021 for [re-]opening of the assessments for the assessment [year ]2O13-14 [and]subsequent years. lnitially, these re-opening assessments weresubjected to challenge before various High Courts and many of [the]High Courts had quashed the notices in the light of the subsequentamendment that had been brought to the Income Tax Act and [the]insertion of the new Section i.e. Section 148A. The decision of thet{igh Courts which had allowed the writ [petitions ]of various otherassessee's was subjected to challenge before the Hon'l,rle SupremeCourt. Where the Hon'ble Supreme Court had tagged up all the matters and passed the landmark decision in the case of UNION OFINDIA AND OTIIERS. VS. ASHISH AGARWALI. 17. The Hon'ble Supreme Court after considering the legalcontentions raised at the bar, at paragraph No.7 held that the FinanceAct, 2021, being of remedial and benevolent nature and having beensubstituted with a specific aim and object, more particularly, toprotect the rights and interests of the assessee and the same being inpublic interest, held that they were in complete agreement with theview taken by the various High Courts while holding that the benefitof the new provisions shall be made available even in respect of theproceedings relating to the past assessment years, where notices havebeen issued under Section 148 on or after 01.O4.2O21 i.e. the datesince when the Finance Act,2O2l, became enforceable. 18. However, while upholding the judgements of the High Courts,the Hon'ble Supreme Court taking into consideration the fact that theIncome Tax Department had issued approximately 9O,OOO noticesunder Section 148 of the un-amended Act and in all these cases, theDepartment would become remediless so far as re-assessmentproceedings are concerned. Therefore, as a onetime measure invokingthe powers conferred upon it under Section 142 of the Constitution ofIndia, the Hontrle Supreme Court ordered that the notices under ' [to72 ][qqq ]ta t sc Section 148 which were issued by the [Department ][should ][be]considered to have been issued under Section [148A ][of ][ihe ][Income ][Tax]Act i.e. new provision inserted by [way ][of the ][Finance ][Act,2O2l, ][and]permitted the Department to proceed further with the re-assessmentproceedings as per the substituted provisions of Section 147 to [151 ][of]the Income Tax Act as per the Finance Act,2021. 19. It would be relevant at this [juncture ]to take [note ][of ][the]observations made by the Hon'ble Supreme Court in [paragraph ][No.7]and paragraph No.S. The relevant portion of which is [being ][re-]produced herein under: "Thus, the netu prouisions substituted bg the Finance Act, 2021beir,g remedtal and beneuolent in noture and substituted- [with ][a]specific aint and object to protect the nghts and interest [of ][the](Ls.se.s.see os urcll as ond the so.me being in public interest, therespectiue High Courts haue rightlg held that the beneilt of [neu)]prouisions shall be made auailable euen in respect of theproceed ings relatlng to pas, assessment Uears, [prouided. ]section148 notlce hos been issued on or after Apnl 1, 2021. [We ][are in]complete agreemeftt LDith the uieu taken bg the uarinus HighCourts [n hotding so. "Thus, the netu prouisions substituted bg the Finance Act, 2021beir,g remedtal and beneuolent in noture and substituted- [with ][a]specific aint and object to protect the nghts and interest [of ][the](Ls.se.s.see os urcll as ond the so.me being in public interest, therespectiue High Courts haue rightlg held that the beneilt of [neu)]prouisions shall be made auailable euen in respect of theproceed ings relatlng to pas, assessment Uears, [prouided. ]section148 notlce hos been issued on or after Apnl 1, 2021. [We ][are in]complete agreemeftt LDith the uieu taken bg the uarinus HighCourts [n hotding so. Hotueuer, ot the same time, the [judgments ]of the seueral HighCourts would result in rlo reassess/nent [proceedings ]at [a)1, ][euen]if the same are pennksible under the Finarrce Acl 2O21 and [as]per substituted. sections 147. The Reucnue connot be made remediless and the object andpurpose of reossessment proceedings cannot be fru-strated. It istrue that due to a bona fide mi.stake and in uieut of subsequentextension of time uide uarious notifrcations, the Reuenue [i-ssued-]the impugned notices under section 148 after the amendmentua-s enforced tutth effect from April 1, 202 , under theunamended section 148. In our uieut the same ought not to [haue]heen issued under the unamended Act and ought to haue beenussuerl under tlle substituted prouisions of sections 147 to [151 ]ofthe Income-to-y Act as per the Finance Ac| 2021. There oppearsto be genuine non applicatton of the amendments as the officersof thc Rcueruue mag hante been under a bona fi.de belief that the amendments moA not Aet haue been enforced.. [Therefore, ][uLe ][are]of the opinion that some leeuay must be shoun [in ][that ][regard]uhich the High Courts could haue done so. Therefore, [instead ][of]quashing and selting aside the reassessment notbes [i-ssued]under the unamended. [prouisions ]of the Income-tax [Act ][as ][those]deemed to haue been i.ssued under section 148A of [the ][Income-]tox Act as per the neu.t [prouisions ]of section [148y'. ][and ][the]Reuenue ought ta haue been [permitted. ][to ]Proceed further [with ][the]reassessment proceedings as [per ]the substituted. [prouisions ][of]sections 147 to 151 of the Income-tax [Act ][a.s ][per ][the Finance ][Act,]2021, subject to compliatrce of oll [the proced.ural ][requirements]and the defences, which may be auailoble [to ]the [assessee ][under]the substituted [prouisions ]of sections [147 ][to ][151 ][of ][the ][Income]tox Act and which mag be auailable under [the Finance ][Act, ][2021]and in law. ThereJore, uE [propose ][to modifu ][the ][judgments ][and]orders possed bg the [respectiue ][High ][Courts ][as under ][:] O The respectiue impugned section 148 [noti.ces ][issued to ][the]respectiue assessees slull be deemed to [haue been ][issued]under section 148A of the Income-tox Act [as ][substituted]bg the Finance Act, 2021 and. treated [to ][be ][shotu cause]notices in tenns of section 148A(b). [The ][respectiue]Assessing Offtcers shall within [thirtg ][dags ]from [todag]prouide to the asseessees the infonnatinn and [material]reliecl upon bg the Reuenue so that [the ][asseessees can]replA to the notices utithin tun weeks thereofter ;respectiue assessees slull be deemed to [haue been ][issued]under section 148A of the Income-tox Act [as ][substituted]bg the Finance Act, 2021 and. treated [to ][be ][shotu cause]notices in tenns of section 148A(b). [The ][respectiue]Assessing Offtcers shall within [thirtg ][dags ]from [todag]prouide to the asseessees the infonnatinn and [material]reliecl upon bg the Reuenue so that [the ][asseessees can]replA to the notices utithin tun weeks thereofter ; (i4 The requirement of conductitrg ang en4uirg with [the ][pnor]approual of the specifted authoity [und.er ][section ][148A9(a)]be d.tspensed with as a onetime mectsure [uis-ri-uis ][tho-se]notices uhich haue been [issued. ]under [section ][148 ][of ][the]unamended. Act from APril [1,]approual of the specifted authoity [und.er ][section ][148A9(a)]be d.tspensed with as a onetime mectsure [uis-ri-uis ][tho-se]notices uhich haue been [issued. ]under [section ][148 ][of ][the]unamended. Act from APril [1,] (iil) Ihe Assessing Offtcers shall thereofter [pass ][an ][order ][in]terms of section 148A(d) after follouing [the ][due ][procedure]as required under section 148A(b) in [respect ][oJ ][each ][ol ][the]concerned assessees",'terms of section 148A(d) after follouing [the ][due ][procedure]as required under section 148A(b) in [respect ][oJ ][each ][ol ][the]concerned assessees",' The Hon'ble Supreme Court further, [in ][order ][to ][strike ][a ][balance] between the rights of the [Revenue as ][well ][as ][the ][respective ][assessee's]ordered that the notices [issued ][under ][Section ][148 ][of the un-amended]Act to be deemed to have [been ][issued ][under ][Section ][l48A ][of ][the]Income Tax Act as substituted [by ][the ][Finance ][Act, ][2O2L, ][and ][also]ordered for construing or [treating ][the ][notices ][to ][be ][the ][show ][cause] notice in terms of Section l48A (b) while disposing of the batchmatters. The Honble Supreme Court in its operative part gave thefollowing directions in paragraph No.I0, which again for readyreference is being reproduced herein under: '[n uieu oJ the aboue and lor the reo-s,ons stated. aboue,the present appeols are allotted in part. The impugned commonjudgments ond orders passed bg the High Court of Judicatureat Atlahabad in W. T. No. 524 of 2021 and other allied taxappeals/ petitions, i-s/ are herebg modi{ted and substituted asunder (t)The impugned section 148 notrces i.ssued to the respectiueassessees uhich uere issued under unamended section148 of the Income-tox AcL tDhich uere the subject matterof Lurit petitions before the uarious respectiue High CourtsshaLL be deemed to haue been issued under section 148Aof the Income-tax Act as substituted bg the Finance Act,2O21 and constnted. or treated to be shou-cause notices interms ol section ) 48A(b,1, The Assess ing Offber shal\utithin thtrty clays from todag prouide to tlae respectiueasse€ssee.s mformation and materia.l reLied- upon bg theReuerrue, so that the asse.ssees can reply to the shout-calrsc notices uithtn ttLto Lueeks lhereafter :assessees uhich uere issued under unamended section148 of the Income-tox AcL tDhich uere the subject matterof Lurit petitions before the uarious respectiue High CourtsshaLL be deemed to haue been issued under section 148Aof the Income-tax Act as substituted bg the Finance Act,2O21 and constnted. or treated to be shou-cause notices interms ol section ) 48A(b,1, The Assess ing Offber shal\utithin thtrty clays from todag prouide to tlae respectiueasse€ssee.s mformation and materia.l reLied- upon bg theReuerrue, so that the asse.ssees can reply to the shout-calrsc notices uithtn ttLto Lueeks lhereafter :(i4I'he requircmt:nt o.f cotlducting ang enquiry, i.f required,u.ttth the prior approual of specified authoritg under sectionI48A(a) is hcrebg dtspensed uith as a onettme measureuis-A -uis those noticcs uLhich haue been issued und.ersection 48 oJ the unamended Act from ApriL I , 2021 tilldate, including those uhich houe been quashed bg theHlgh Courts.u.ttth the prior approual of specified authoritg under sectionI48A(a) is hcrebg dtspensed uith as a onettme measureuis-A -uis those noticcs uLhich haue been issued und.ersection 48 oJ the unamended Act from ApriL I , 2021 tilldate, including those uhich houe been quashed bg theHlgh Courts. Euen othertuise as obserued hereinaboue holding ongenquiry uith the prior approuat of specifted authoity is notmand atorg but it as for the concemed Assessing Offtcers tohold uny anqutry, if required :hold uny anqutry, if required : Euen othertuise as obserued hereinaboue holding ongenquiry uith the prior approuat of specifted authoity is notmand atorg but it as for the concemed Assessing Offtcers tohold uny anqutry, if required :hold uny anqutry, if required : (iilThe Asscssing Officers shall therea,fter pass orders interms of section 148A(d) in respect of each of theconccrned o.ssesce-s ; thereafter after follouing theprocedure as required under section l48A mag issuenotice undar section 148 (as substituted) ;(iu)ALI tle.f<'rtces which ttag be auaiLable to the assesseesrncludirtg those auailablc under section 149 of the Income-(ex Act anrl alL rigltts and contentions which mag beauailqbk' to tha concernccl nsse-s-see-s and Reuc:nue under (iu) the Finance Act, 2O21 and. in Laut, shall continue [to ][be]auaiLable. 20. Keeping the aforesaid [view ][of ][the ][Hon'ble ][Supreme ][Court, ][it] would be relevant at this [juncture ][to ][take ][note ][certain ][provisions of]the Income Tax Act which stood [amended ][with ][effect ][from ][OL-O4.2O21]by virtue of the Finance [Act,2O2l. ][Section ][144B ][inserted ][by ][virtue ][of]the Finance Act, 2021, [with ][effect ][from ][01.O4'2O21 ][provides ][for]faceless assessment and [sub-Section ] [of ][the ][said ][newly ][inserted]Section 144B is an non-obstante [clause. The ][relevant portion ][of ][sub-]Section I of Section 144B [necessary ][for ][adjudication ][of ][the]preliminary issue under consideration [is re-produced herein ][under:] "NotLuitlstanding angthing to the contrarA contained [in ang other]prouision of this Act, the assessmenf, [reassessment ][or]recotnputatton under sub [section ][(3) ][of ][section 143 of ][under ][section]144 or under section 147 [as ][the cose mag ][be ][uilh ][respect to ][the]cases referred to in sub-section [(2), ][shall be ][made ][in ][a ]facelessmanner as per the following [procedure, namelg:'] the NatLonal Faceless Assessment [Centre ][shall assign ][the]case selected for the [purposes ][oJ ]faceless [assessment]und.er this section [tD ]a [specifrc ][assessment ][unit ][through ][an]au to mate d allocatio [n ][sY ][s ][te ][m;]case selected for the [purposes ][oJ ]faceless [assessment]und.er this section [tD ]a [specifrc ][assessment ][unit ][through ][an]au to mate d allocatio [n ][sY ][s ][te ][m;](it)tlre NationoL Faceless [Assessment Centre ][shall ][intimote]lhe assessee that assessment [in his ][case ][shall ][be]completed in accord.once with the [procedure ][laid ][douLn]under this section;lhe assessee that assessment [in his ][case ][shall ][be]completed in accord.once with the [procedure ][laid ][douLn]under this section;(iir)a notice shatl be serued [on ][the ][assessee, ][through ][the]National Faceless Assessment [Centre, ][under ][sub-section](2) of section 143 or und.er sub-section [(1) ][of ][section ][142]and the assessee mag file [hi,s ][response ][to ][such ][notice]uithin the date specified [therein, ][to ][the ][National ][Faceless]Assessment Centre uhich [shall ]foruard [the same ][to ][the]as-sessment unit";National Faceless Assessment [Centre, ][under ][sub-section](2) of section 143 or und.er sub-section [(1) ][of ][section ][142]and the assessee mag file [hi,s ][response ][to ][such ][notice]uithin the date specified [therein, ][to ][the ][National ][Faceless]Assessment Centre uhich [shall ]foruard [the same ][to ][the]as-sessment unit"; 2t. In continuation to the [aforesaid ][provisions, ][it ][would ][be relevant]to take note of yet [another ][provision ][of ][law i.e. ][sub-Section ] [of] Section 151A which was inserted with effect from O1.ll.2O2O.lt refersto faceless assessment of income escaping assessment which wouldbe relevant for better understanding of the issue being decided in thepresent batch of writ petitions, which again for ready reference isbeing re-produced herein under: 2t. In continuation to the [aforesaid ][provisions, ][it ][would ][be relevant]to take note of yet [another ][provision ][of ][law i.e. ][sub-Section ] [of] Section 151A which was inserted with effect from O1.ll.2O2O.lt refersto faceless assessment of income escaping assessment which wouldbe relevant for better understanding of the issue being decided in thepresent batch of writ petitions, which again for ready reference isbeing re-produced herein under: 'The Central Couernment mag make a scheme, bg nottfication inthe Offtcial Gazette, -fo, the purposes o./ assessment,reassessment or re-computation under section 147 or issuance ofnotice under section 148 [or conducting of enquiries or issuance ofshou.t-cause notbe or passing of order und.er section 148A1 orsanction for issue of such notice under section l5l, so as toimport greater effrciencg, transparencg and accountabilitA bV (a) eliminating the interfacc betueen the income-tax authoitgond the assessee or anu other person to the extenttechnolog ically f e os ib Ic ;ond the assessee or anu other person to the extenttechnolog ically f e os ib Ic ; ;(b) optimising utilisation of the resources througlt economi.es ofscale and functio nai s peci ol i s o tio n ;scale and functio nai s peci ol i s o tio n ; n ;;(c) introducing a team-based .t-s-sessment, reassessmen| re-conq)utatlon or issuoncr: or sanctr)n of notice uitlt dgnamicconq)utatlon or issuoncr: or sanctr)n of notice uitlt dgnamicjurisdictinn". 22. Similarly, the Central Board of Direct Taxcs had also arnended Section 13O of the Income Tax Act so far as conferring jurisdiction ofthe Income Tax Authorities in thc light of the faceless assessmentprocedure being adopted. The amended Section l3O and sub-SectionI which is relevant for the present issue under consideration again forready reference is being reproduced herein under: "The Central Gouernment mag make. tt scheme, bg notifrcation inthe Offrcial Gozette, for thc purpose of (a) exercke of all or cury of thc ltoucrs antl perfornrance of all orong of the functiotTs conferred on, or, as the ca_\e nay be,assigned to incorne te^ authoritres by or undcr lhis Act asrekrred to in secfi<tn I 2O: orong of the functiotTs conferred on, or, as the ca_\e nay be,assigned to incorne te^ authoritres by or undcr lhis Act asrekrred to in secfi<tn I 2O: or (b) uesting the [jurisdbtion ]uith the Assessing Offrcer as [refened]to in section 124; orto in section 124; or (c) exerci.se of pouer to transkr [cases ]und.er section [127; ][or] (d) exercise of juisdiction in cose of change of incumberrcy [as]refened to in section 129,refened to in section 129, so as to impart greater efficiency, [transparencA ][and ][<rccountobilitg]bg 0eliminating the interface betu-een [the iname-tox ][atthoifu]and. the assessee or any [other ]Person, [to ][the ][extent]techno Log ically fe asib [le ];and. the assessee or any [other ]Person, [to ][the ][extent]techno Log ically fe asib [le ];(i4opttmi-sing utilisation of [the resources through ][economies ][of]scale and functional specialisation;scale and functional specialisation; (iit)introducing a team-based [exercise ][of ][powers ][and]perfonnance of functions bA two or [more ][income-tax]authoritic s, concurrentlA, [in ][respect ][of ][anA ][area ][or ][person-s]or classes or cases, tuith [dynamic ][juisdiction."]perfonnance of functions bA two or [more ][income-tax]authoritic s, concurrentlA, [in ][respect ][of ][anA ][area ][or ][person-s]or classes or cases, tuith [dynamic ][juisdiction."] 0eliminating the interface betu-een [the iname-tox ][atthoifu]and. the assessee or any [other ]Person, [to ][the ][extent]techno Log ically fe asib [le ];and. the assessee or any [other ]Person, [to ][the ][extent]techno Log ically fe asib [le ];(i4opttmi-sing utilisation of [the resources through ][economies ][of]scale and functional specialisation;scale and functional specialisation; (iit)introducing a team-based [exercise ][of ][powers ][and]perfonnance of functions bA two or [more ][income-tax]authoritic s, concurrentlA, [in ][respect ][of ][anA ][area ][or ][person-s]or classes or cases, tuith [dynamic ][juisdiction."]perfonnance of functions bA two or [more ][income-tax]authoritic s, concurrentlA, [in ][respect ][of ][anA ][area ][or ][person-s]or classes or cases, tuith [dynamic ][juisdiction."] 23. In furtherance to [the ][powers conferred ][under ][sub-Sections ][1]arrd. 2 of Section [130 ][of ][the ][aforesaid Income ][Tax ][Act, the ][Central]Board of Direct Taxes [framed ][a ][scheme ][called ][as the ]["Faceless]'"jurisdiction of Income Tax Authorities Scheme, [2022 ]A plain reading of [the ][aforesaid ][notification would ][clearly reflect ][that]as has been amended [under Section ][130. ][The ][Central ][Board of ][Direct]Taxes has framed a [scheme ][which ][defines ][the Act ][to ][be ][the ][Income]Tax Act and it [specilically defines automated allocation ][which ][is]defrned under Section [2 ][(1)(b), ][which ][again ][for ][ready reference ][is being]re-produced herein [under:] "In this Sclrcme. unless [the context ][otherwise ][requires, ][-'] (a) "Act" means the Income-tax Act, [1961 (43 ][of ][1961);](b) "outomoted allocation" means [an ][algorithm ]forrancLomised allocation of [cases, ]bg [using ][suitable]technoLogicaL tools, [mcluding ][artifrcial ][intelligence and]machine Learning, Luith a [uieu to ][optimise ][the ][u-se ][of]resources;"(b) "outomoted allocation" means [an ][algorithm ]forrancLomised allocation of [cases, ]bg [using ][suitable]technoLogicaL tools, [mcluding ][artifrcial ][intelligence and]machine Learning, Luith a [uieu to ][optimise ][the ][u-se ][of]resources;" Further Section 3 of the said scheme deals with vesting of thejurisdiction with the Assessing Officer, which again for readyreference is being reproduced herein under:reference is being reproduced herein under: 'uesting the juri-sdiction uith the Assessing Olficer as refened toin section 124 of the Act, shall be in a faceless nlonner, throughautomated allocation, in accordance u,ith and ta the extentprouid.ed- in- (i) Section 1448 of the Act uith reference to makingfaceless [assessment ][of total ][income ][or ][los.s ][o/ ][assessee; ]["] 24. In furtherance to the aforesaid notification, the Central Board of Direct Taxes again in exercise of its powers conferrcd under sub-Sections I ar..d 2 of Section l51A framed another scheme ca.lled as thee-assessment of Income Escaping Assessment Scheme 2022, whricF,defines automated allocation is reprociuceci herein uncier: 'In thb Scheme, unless the conte-\t otherutse requires, (a) "Act" means the Income.to-x Ac; 1961 (a.) of 1961);(b) "autnmated allocation" rtean-s on aLgctrithm forrand.omised ailocation o/ cases, br1 usinq suitobletechnological tools, includtng artiftcial tntelLigence ondmachine learning, with a uteu to optimise the use ofresources."(b) "autnmated allocation" rtean-s on aLgctrithm forrand.omised ailocation o/ cases, br1 usinq suitobletechnological tools, includtng artiftcial tntelLigence ondmachine learning, with a uteu to optimise the use ofresources." And the scope of the scheme again has been envisaged in Section 3 of the said scheme, which again for ready refcrence is being reproducedherein under: "For the purpose of this Scheme, (a) assessment, reasses.sne[t or recomputarrcrt undersectopm 147 of the Act,sectopm 147 of the Act, (b) issuance of notice under section t48 of the Act. And the scope of the scheme again has been envisaged in Section 3 of the said scheme, which again for ready refcrence is being reproducedherein under: "For the purpose of this Scheme, (a) assessment, reasses.sne[t or recomputarrcrt undersectopm 147 of the Act,sectopm 147 of the Act, (b) issuance of notice under section t48 of the Act. shall be through outomated allocation, in accordance with riskmanagement strategA fonnulated bg the Board [as ][referred ][to ][in]section 148 of the Act Jor issuance of [notice, ][ond ][in a ]facelessmanner, to the extent prouk)ed in section 1448 of the Act u)ithreference to making assessment or reassessment [oJ ]totol tnomeor loss o;f assessee. " 25. A plain reading of the [aforesaid two ][notifications ][issued by ][the] Central Board of Direct Taxes dated [28.O3.2022 ][ar.d' ][29.03.2022, ][it]would clearly indicate that the [Central ][Board of ][Direct ][Taxes ][was very]clear in its mind [when ]it [framed ][the ][aforesaid ][two ][schemes ][with]respect to the proceedings to [be ][drawn under Section ][148A, ][that is ][to]have it in a faceless manner. [There were ][two ][mandatory conditions]which were required to be adhered [to ][by ][the ][Department, ][firsfly, ][the]allocation being made through the [automated allocation ][system ][in]accordance with the risk management [stratery ][formulated ][by ][the]Board under Section 14t] of [the Act. ][Secondly, ][the ][re-assessment has]to be done in a faceless manner [to ][the extent ][provided ][under ][Section]l44B of the Act. 26. After the introduction [of the ][above ][two ][schemes,]it becomes mandatory for the Revenue [to ][conduct/initiate ][proceedings]pertaining to reassessment under Section [147, ] [& ][l48A ][of the Act]in a faceless manner. Proceedings [under Section ][147 and Section ][148]of the Act would now have [to ][be ][taken ][as ][per ][the ][procedure ][legislated]by the Parliament in [respect ][of ][reopening/ ][re-assessment ][i.e.,]proceedings under Section l48A of [the ][Act.] 27. In the present case, both the proceedings i.e., the impugnedproceedings under Section 148A of the Act, as well as theconsequential notices under Section 148 of the Act were issued by thelocal jurisdictional oflicer and not in the prescribed faceless manner.The order under Section 148A(d) of the Act and the notices underSection 148 of the Act are issued on 29.04.2022, i.e., after the'Faceless Jurisdiction of the Income Tax Authorities Scheme, 2O22"and the "e-Assessment of Income Escaping Assesslnent Scheme,2022" were introduced. 24, From the afore given factual matrix, lirstly the statutoryprovisions enumerated in the preceding paragraphs anrl secondly, thesubsequent direction given by the Honblc Suprcme Court in the caseof Ashish Agarwal, supra, what is clearly reflected is tlte fact thatwhen the Hon'ble Supreme Court had partl-v allorvccl thc petitionswhich were filed by the Union of India challenging the jtrdgements ofvarious High Courts whereby the notice under Scction 148 of theunamended Act were set aside by the High Courts, the HontrleSupreme Court has only permitted the Union of India to proceedfurther with the reassessment proceedings under the amendedprovision of law, more particularly, as amended by the Finance Act,2021. It never intended the authorities concerned to continue with theproceedings from the stage of the issuance of notrces under Section148, nor is the directions to that effcct. And therc cannot bc any confusion, ambiguitYormis-conception for the respondent-Department to have in this regard confusion, ambiguitYormis-conception for the respondent-Department to have in this regard 29. The Honble Supreme [Court has ][in ][paragraph ][No.7 specifically]held that the High Courts have rightly [held ][that ][the ][benefit ][of ][new]provisions shall be made available in [respect ][of ][the ][proceedings]relating to past assessment [years. ][Further, ][the ][Hon'ble ][Supreme]Court again in [paragraph ][No.8 ][very emphatically ][had ][said ][that ][the]proceedings ought not to have been [issued ][under ][the unamended ][Act-]Rather ought to had been [issued ][under ][the ][substituted ][provisions ][as]per the Finance Act, 2021. [Furthcr, ][in ][the ][same ][paragraph ][clearly]directed the Income Tax [Department ][to ][proceed ][further as per ][the]Finance Act, 2021, subject to [compliance ][of a