Wp/14451/2023 Of Niranjan Kumar Jain v. Deputy Commissioner Of Income Tax

IN THE HIGH COURT FOR THE STATE OF TELANGANAAT HYDERABAD(Special Original Jurisdiction) SATURDAY, THE EIGHTEENTH DAY OF NOVEIVBERTWO THOUSAND AND TWENTY THREE PRESENT THE HONOURABLE SRI JUSTICE P. SAM KOSHYANDTHE HONOURABLE SRI JUSTICE N. TUKARAMJI WRIT PETITION Nos.: 14430 AND 14451 OF 2023 WRIT PETITION NO: 14430 OF 2023 Between: Niranjan Kumar Jain, S/o Ramesh Kumar Jain, Aged about 40 Years, 3-6-363, Mahaveer chambers, Himayatnagar, Hyderabad, Telangana- 500029. ...PETITIONER AND 1. Deputy Commissioner Of lncome Tax Circle ['l(1), ]lT Towers, AC Guards,Masab Tank, Telangana - 500004Masab Tank, Telangana - 500004 2- The Principal Commissioner of Income Tax - 1, 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) ofthe Act, dt. 18.04.2023, passed by the 1st respondent vide DIN No.the nature of Writ of Mandamus, declaring the impugned Order u/s 148A(d) ofthe Act, dt. 18.04.2023, passed by the 1st respondent vide DIN No.ITBA/AST/F/148A12022-2311042642037(1)and the consequent notice issued uis148 of the Act by the JAO for A.Y.2019-20, vide Document ldentification No.(DlN) ITBA/AST lsl148_112023- 24 11052158544(2), as void, illegal, and contraryto the Provisions of lncome- tax Act and contrary to the Principles of NaturalJustice.148 of the Act by the JAO for A.Y.2019-20, vide Document ldentification No.(DlN) ITBA/AST lsl148_112023- 24 11052158544(2), as void, illegal, and contraryto the Provisions of lncome- tax Act and contrary to the Principles of NaturalJustice. lA NO: ['l ]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 Order u/s 148A(d) of the Act andconsequential notice u/s 148, dt. 18.04.2022, passed by the 1st respondent forA.Y. 2019- 2O, and may pass such other order(s) as the Honble Court deems fit I and proper in the interests of substantial [justice, ]as otherwise the Petitionerwould be put to irreparable loss and severe injury. Counsel for the Petitioner: SRI DUNDU MANMOHAN Counsel forthe Respondents: SRI J.V. PRASAD (SC FOR INCOME TAX) WRIT PETITION NO: 14451 OF 2023Between: Niranjan Kumar Jain, S/o. Ramesh Kumar Jain, Aged about 40 Years, 3-6-363, Mahaveer chambers, Himayatnagar, Hyderabad, Telangana-500029. ...PETITIONER AND'1. Deputy Commissioner Of lncome Tax, Circle 1(1),lTTowers, AC Guards,Masab Tank, Telangana - 500004'1. Deputy Commissioner Of lncome Tax, Circle 1(1),lTTowers, AC Guards,Masab Tank, Telangana - 500004 2. The Principal Commissioner of lncome Tax - 1, l.T. Towers, AC Guards,Masab Tank, Hyderabad, Telangana 500004.Masab Tank, Hyderabad, Telangana 500004. 3. The Assessment Unit, lncome Tax Department, National FacelessAssessment Centre, Delhi, Ministry of Finance, Room No. 4O1 ,2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, Delhi-1 ['10003.]...RESPONDENTSAssessment Centre, Delhi, Ministry of Finance, Room No. 4O1 ,2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, Delhi-1 ['10003.]...RESPONDENTS ...PETITIONER AND'1. Deputy Commissioner Of lncome Tax, Circle 1(1),lTTowers, AC Guards,Masab Tank, Telangana - 500004'1. Deputy Commissioner Of lncome Tax, Circle 1(1),lTTowers, AC Guards,Masab Tank, Telangana - 500004 2. The Principal Commissioner of lncome Tax - 1, l.T. Towers, AC Guards,Masab Tank, Hyderabad, Telangana 500004.Masab Tank, Hyderabad, Telangana 500004. 3. The Assessment Unit, lncome Tax Department, National FacelessAssessment Centre, Delhi, Ministry of Finance, Room No. 4O1 ,2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, Delhi-1 ['10003.]...RESPONDENTSAssessment Centre, Delhi, Ministry of Finance, Room No. 4O1 ,2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, Delhi-1 ['10003.]...RESPONDENTS Petition under Article 226 of lhe 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) ofthe Act, dl. 25.04.2022, passed by the 1st respondent vide DIN No.ITBA/AST/F/148A12022-2311042835493(1) and the consequent notice issued u/s148 of the Act for A.Y. 2018-19, vide Document ldentification No.(DlN)ITBA/AST/S/148-1/2022-2311042835507(1), as void, illegal, and contrary to theProvisions of lncome-tax Act and contrary to the Principles 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 148A(d) of theAct, dt. 25.04.2022, passed by the 1st respondent vide DIN No.ITBA/AST/F/148A12022-2311042835493(1) and the consequent notice issued u/s148 of the Act for A.Y. 2018-19, vide Document ldentification No.l DlN)ITBA/AST/s t 1 48 _1 I 2022-231 [1 ]O 42835507 [(1 ]) Counsel for the Petitioner: SRI DUNDU MANMOHAN Counsel for the Respondents: SRI J.V. PRASAD (SC FOR INCOME TAX) The Court made the following: COMMON ORDER I I THE HON'BLE SRI .IUSTICE P.SAM KOSHY ANt) THE HON'BLE SRI ruSTICE N.TUKARAMJIWRIT PETITION Nos.14430 and 14451 of 2023 COMMON ORDEIT:1pcr Ilon blc.\ri .tusrica P.S,IM KO,SHYl When these matter are taken up lor hearing today, it has beeninformed by the parties that identical writ petitions i.e., W.P.No.25903of 2022 and batch have already been allowed and disposed of videorder dated 14.o9.2023. 2. In view of the lact that the identical rnatter has already beenallowed by this Court, we are inclined to allow these writ petitionsalso, in terms of the order passed in W.P.No.25903 of 2022 and batchdecided on t4.O9.2023 on similar terms. 3. As a sequel, miscellaneous applications pending if any in thesewrit petitions, shall stand closed. No order as to costs. SD/.N. SRIHARIASSISTANT REGISTRARSECTIO}SFFICER //TRUE COPY// To,1. DeDutv Commissioner [Of ][lncome ][Tax ][Circle ][1(1 ]), [lT ][Towers, ] [Guards']Ma'sa5 Tank, Telangana [- ][500004]1. DeDutv Commissioner [Of ][lncome ][Tax ][Circle ][1(1 ]), [lT ][Towers, ] [Guards']Ma'sa5 Tank, Telangana [- ][500004]z. iG [princioai ]Comriissioner [of lncome Tax - ][1, ][l.T ][Towers, ] [Guards']Masab Tai.rk, Hyderabad, [Telangana 500004']Masab Tai.rk, Hyderabad, [Telangana 500004']* O. ifre Assessment [Unit, ][lncome TZx ][Department, ][National ][Faceless]nls6simlnt Centre, Delhi, Ministry of Finance, Room No' 401 ,2nd Floor' E-Ramo. Jawaharlal Nehru Stadium, [[Delhi-'1 ]][10003.]nls6simlnt Centre, Delhi, Ministry of Finance, Room No' 401 ,2nd Floor' E-Ramo. Jawaharlal Nehru Stadium, [[Delhi-'1 ]][10003.] Ramo. [[Delhi-'1 ]]a One CC to SRI DUNDU [IVIANMOHAN, ][Advocate ]IOPUCI -a One CC to SRI DUNDU [IVIANMOHAN, ][Advocate ]IOPUCI -[[FoR ][INCoME ]] Ramo. [[Delhi-'1 ]]a One CC to SRI DUNDU [IVIANMOHAN, ][Advocate ]IOPUCI -a One CC to SRI DUNDU [IVIANMOHAN, ][Advocate ]IOPUCI -[[FoR ][INCoME ]] -- 5. oG cc tni"rg *itli to snt the [J.v. ]order copy d)ted [(sc ][[FoR ][INCoME ]]14.09.2023 [[INCoME ]]in I4x) w.P. [toPqgl ]No'25903 -ot 2022)- 5. oG cc tni"rg *itli to snt the [J.v. ]order copy d)ted [(sc ][[FoR ][INCoME ]]14.09.2023 [[INCoME ]]in I4x) w.P. [toPqgl ]No'25903 -ot 2022) 6. Two CD CopiesBNGJP b^)BNGJP b^) l l ! HIGH COURT DATED:1811112023 COMMON ORDER WP.Nos.l4430 of 2023 AND14451 of 2023 1 EL4o(.s6?,\sI ob(.*H9 ALLOWING BOTH THE WRIT PETITIONSWITHOUT COSTS cyu'ge..__. ''w THE HON'BLE SRI JUSTICE P.SAM KOSHY AND THE HON'BLE SRI JUSTICE LAXMI NARAYANA ALISHETTY Writ Petition Nos.259O3 242t4 2427t 32075 32090 s268833050 334o2 33474 34100 34101 34340 3459a 346043466t 34698 34746 348363577436598 36828 36945374t4 3749t 37536 43427 45047 of 2022 Writ PetitionNos.15383 4737t9 372L 3729 3738 969511599 14485t4492. L542L. 15736. 15745. L576a. 15779. t6t64. 16223,16224, t67 61, 1 6783, t9966, 209 L4, 20929, 20959arl^d.23556 of 2023 COMMON ORDER: (per Hon'ble Sn Jrstice P. S.4M KOSIIY) These batch of writ petitions have been filed assailing the orderpassed by the respondent No. l/The Income Tax Officer dated29.O7.2022, vide DIN & Notice No.ITBA/COM/Fl17/2022-23 /1044297902(1) for the assessment year 2016-17, under Section148-A (d) of the Income Tax Act, 1961 (for short the ActJ. Thechallenge is also to the consequential notice dated 29.O7.2022, underSection 148 of the Income Tax Act, as well, issued by the respondentNo. t himself. 2, Heard Sri A.V. Krishna Kaundinya, learned Senior Counselappearing on behalf of Sri A.V.A. Siva Kartikeya, learned counsel forthe 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, 1961. 4. The objection specificaliy was that once when the respondentNo. I have decided to go in for re-assessment of the return submittedby the petitioner/ assessee and notice for the same under Section148A of the Act was issued, it was incumbent upon tht: respondentNo. 1 to have adhered to the amended provision of the A<:t. 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 I44B of the Act and in accordance with 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 was substantiallytouching the [jurisdictional ]issue itself, the learned Senior Counselappearing for the petitioner requested for considering and decidingthe aforesaid preliminary objection first. Further only if required andin case, the preliminary objection is held to be not sustainable, wouldthere be a requirement for this Court to proceed further and decidethe other issues raised. l l 5. In view of the request made by the learned Senior Counselappearing for all the petitioner and which was accepted by the learnedcounsel for the respondent, we proceed to decide the aforesaidjurisdictional issue as a preliminary issue and only if required wouldwe then proceed further to decide the other issues. l l 5. In view of the request made by the learned Senior Counselappearing for all the petitioner and which was accepted by the learnedcounsel for the respondent, we proceed to decide the aforesaidjurisdictional 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 beingconsidered as the foremost issue is, "whether the impugned orderunder Section l48A (d) as well as the notice under Section 148 of theAct could be issued by the local [jurisdictional ]officer, rather than thefaceless assessment." The issue in other words was "whether was itnot mandatory for the authorities concerned to initiate proceedingspertaining to re-assessment under Section 148A and 148 of the Act ina faceless manner, (rather than being proceeded by the localjurisdictional ofhcer), as is envisaged under Section 1448 as alsounder Section 151A of the Act." 7. Learned Senior Counsel appearing for the petitioner stressedhard on the fact that subsequent to the amendment incorporated inthe Income Tax Act, 1961, with effect from 29.03.2022 all theproceedings initiated by the authorities concerned under Section148A and 148 of the Act were all mandatorily to be proceeded in afaceless manner. Else, the same would amount to being violative ofthe Income Tax Act or in contravention to the procedure prescribedunder law which is in force. 8. According to the learned Senior Counsel appearing for thepetitioner once when the Central Board of Direct Taxes (for shortCBIT), have issued the notification dated 29 .03.2022, whe reby ascheme called e-assessment of Income Escaping Assessment Scheme2022 which came into lorce with effect from 29.03.2022 itself; theassessment, re-assessment or re-computation under Section 147 andthe 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-opening of the proceedings can only be permitted if the incomechargeable to tax escaping assessment is more than hfty-Rs.5O,00,O0O/ 9. It was further contended by the learned Senior Counselappearing for the petitioner that the respondent No.1 has acted in amechanical and arbitrary fashion while issuing notices through thejurisdictional officer. The said Act was without taking intoconsideration the amended provision under the Income Tax 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.50,00,OOO/- or more. 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 Officer lendssupport to the contention of the respondent-Department that theaction on the part of the jurisdictional officer in initiating theproceedings was proper, legal and justified. 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 Officer lendssupport to the contention of the respondent-Department that theaction on the part of the jurisdictional officer in initiating theproceedings was proper, legal and justified. 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 l44B 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 NPAC and the units under it for the specificpurpose of conduct of assessment proceedings in a specific 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 l44B ot the Act. Since, section 1448 of the Act does not provide for issuanceof notice under Section 148 of the Act, there can be no ambiguity inthe fact that the JAO still has the [jurisdiction ]to issue notice underSection 148 of the Act. 12. It was further contended by the learned counsel for therespondent-Department that the said notification does not statewhether the notice is to be the scope of the scheme with regards tothe procedure covered by it and lays down the legal contours of howsuch procedures are to be carried out. It states that the issuance ofnotice under Section 148 of the Act shall be through automatedallocation in accordance with the risk management stratery and thatthe assessment shall be in a faceless manner to the extent providedunder Sectior-r 1448 ol the Act. From the above, it. is apparent that inthe procedure for re-assessment, as it exists as on date, both thesecan be followed. Therefore, it will be incorrect to state that theissuance 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 29.03.2022speak about the detail specifics of the procedure to be followedtherein. They lay down the general principles that should be followedso as to impart greater efficiency, transparency and accountability tothe procedures contained therein. The said scheme lays down that theissuance of notice under Section 148 of the Act shall be through 13. According to the learned counsel for the respondent-Department neither the Section nor the scheme dated 29.03.2022speak about the detail specifics of the procedure to be followedtherein. They lay down the general principles that should be followedso as to impart greater efficiency, transparency and accountability tothe procedures contained therein. The said scheme lays down that theissuance of notice under Section 148 of the Act shall be through automated allocation in accordance with Section 7448 of the Act. Itwas also submitted that the CBIT has issued notification No.Ol /2O22dated 1 1.O5.2O22 containing guidelines for implementation of theHon'ble Supreme Court's judgement in the case of Union of India andOthers us. Ashish Aganaal. Vide the said judgment, the HontrleSupreme Court revived nearly 90,000 notices issued under Section148 between OI.O4.2O2l to 30.06.2021 re-opening assessment for theassessment year 2073-14 and subsequent years. It is to be stated thatthese notices u,ere issued under the old provisions of re-opening. Thewas also submitted that the CBIT has issued notification No.Ol /2O22dated 1 1.O5.2O22 containing guidelines for implementation of theHon'ble Supreme Court's judgement in the case of Union of India andOthers us. Ashish Aganaal. Vide the said judgment, the HontrleSupreme Court revived nearly 90,000 notices issued under Section148 between OI.O4.2O2l to 30.06.2021 re-opening assessment for theassessment year 2073-14 and subsequent years. It is to be stated thatthese notices u,ere issued under the old provisions of re-opening. TheHon'ble Supreme Court had revived these notices quashed by certainHigh Courts by converting the notices issued under Section f 48 (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) dated 29.O7.2O22 are valid actions on the partof the Department.High Courts by converting the notices issued under Section f 48 (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) dated 29.O7.2O22 are valid actions on the partof the Department. 14. It was further contended that the order passed under Sectionl48A(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 assess€ has the re-course of Iiling appeal beforethe CIT (Appeals) when the final order of assessment is passed. 15. According to the learned counsel for the respondent-Department the order passed under Section 148A(d) and the noticeunder Section 148 of the Act dateci 29.O7.2022 were passed/ issued asper the provisions of the Act rrvith appropriate sanction, after givingdue opportunity to the petitioner, and after considering thesubmissions of the assessee. [t is submitted that no [prejudice ]iscaused to the petitioner as the order passed under Section l48A(d) ofthe Act is not an assessment order and only an order to determinewhether 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 Section 148A(d) and the noticeunder Section 148 of the Act dateci 29.O7.2022 were passed/ issued asper the provisions of the Act rrvith appropriate sanction, after givingdue opportunity to the petitioner, and after considering thesubmissions of the assessee. [t is submitted that no [prejudice ]iscaused to the petitioner as the order passed under Section l48A(d) ofthe Act is not an assessment order and only an order to determinewhether it is a fit case for issuance of notice under Section 148 of theAct. 16. Having heard the contentions put lorth on either side and onperusal of records, what is now required to be considered is thefactual matrix of the case. Admittcdly, thc notices were issued underSection 148 of the Act between Ol .O4.2O21 to 3 [1 ].O6.2O2 1 for re-opening of the assessments for the assessment year 2Ol3-74 andsubsequent years. Initially, these re-opening assessments weresubjected to challenge before various High Courts ancl many of theHigh Courts had quashed the notices in the light of the subsequentamendment that had been brought to the Income Ta-r Act and theinsertion of the new Section i.e. Section 148A. The decision of theHigh Courts which had allou,ed the writ petitions of various otherassessee's was subjected to challenge be fore the Hon'ble 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 OTHERS. YS. ASHISIIAGARWALI.INDIA AND OTHERS. YS. ASHISIIAGARWALI. 17. The Hon'ble Supreme Court after considering the legalcontentions raised at the bar, at paragraph No.7 held that the FinanceAct,2O2I, 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 benelitof 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 O1.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,O00 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 Hon'ble Supreme Court ordered that the notices under Section 148 which we re issued by the Departmerlt should [be]considered to have been issued under Section 148,{ of the lncome TaxAct i.e. new provision inserted by u,ay of the Finance Act,2O2l, andpermitted the Department to procced further with the re-assessmentproceedings as per the substituted provisions of Section 147 to 151 ofthe Income Tax Act as per the Finance Act,2O2l. 19. It would be relevant at this [juncture ]to take note of theobservations made by the Hontrle Supreme Court in paragraph No.7and paragraph No.8. The relevant portion of which is being re-produced herein under: "Thus, the neu.t prouisions substiluted bA the Finance Act, 2021being remed.ial and beneuolent in no.ture ond substituted uith aspecific oim and object to protect the ights and interest of theassessee as uell as and the same being in public irtterest, therespectiue Htgh Courts Lnue rightly held that the benefit of neu)prouisions shall be made auailab[e euen in respect of theproceedings relating to past assessment Aears, prouid<:d section148 notice has been issued on or aJler Apfl I, 2021. We are incomplete agreement wtth the uietu taken bg the uarious HighCourts in holding so. 19. It would be relevant at this [juncture ]to take note of theobservations made by the Hontrle Supreme Court in paragraph No.7and paragraph No.8. The relevant portion of which is being re-produced herein under: "Thus, the neu.t prouisions substiluted bA the Finance Act, 2021being remed.ial and beneuolent in no.ture ond substituted uith aspecific oim and object to protect the ights and interest of theassessee as uell as and the same being in public irtterest, therespectiue Htgh Courts Lnue rightly held that the benefit of neu)prouisions shall be made auailab[e euen in respect of theproceedings relating to past assessment Aears, prouid<:d section148 notice has been issued on or aJler Apfl I, 2021. We are incomplete agreement wtth the uietu taken bg the uarious HighCourts in holding so. Hou.teuer, at the same time, the [judgments ]of the seL'eral HighCourts uould result in no reassessment proceedings at all, euenif the same are permissible under the Finance Act, 2021 and asper substituted sections 147. The Reuenue cannot be made remediless and the object andpurpose of reassessment proceedings connot be frustroted. It istrue that due to a bona fide mistake and in uteu of stLbsequentertension of time uide uaious notifications, the Reuenue issuedthe impugned- notices under section 148 ofier the arnendmentuas enforced ruith effect Jrom Apil 1, 2021, under theunamended section 148. In our uieLu the some ought tlot to hnDebeen issued under the unamended Act and ought to l,oue beenissued und.er the substituted proutsions of sections 147 to 151 ofthe Income-tax Act os per the Finance Ac| 2021. T'her<: appearsto be genuine non-appltcation of the amendntents es th.e olficersof the Reuenue mag haue been under a bonct frde belicF that the amendmenls maA not llet haue been enforced. I-herefore, u.te areof the opinion that some leeuay rnust be shoutn in tlnt regarduLhtch the High Courts could haue done so. Therefore, instead ofquashing end setting aside the reassessmen, notices issuedunder the unamended prouisions of the Income-tax Act as thosedeemed to haue been issued under section 148A of the Income-tax Act os per the netu prouisions of section 1484 and theReuenue ought to haue been perrnitted to [proceed ]further with thereoss€ssment proceedings as per the substttuted. prouisions ofsections 147 to 151 of the Income tax Act as per the Finance Act,2021, subkct to compliance of atl the procedural requirementsand the defences, tuhich may be ctuatlable to the assessee underthe substituted prouisions of sections 147 to 151 of the Income-tax Act and uhich may be auailable under the Finance Act, 2021and in law. Therefore, ue propose to modify the [judgments ]andorders passed bA the respectiue High Courts as under : fi The respectiue impug1ned section 148 notices issued to therespectiue cssessees shctll be deemed to haue been issuedunder section l48A of the Income-tax Act as substitutedbA the Finance Act, 2021 and treated to be shota-causenotices in terms of section 148A(b). The respectiueAssessing Offtcers shall uithin thirty dags from todagprouide lo the as.seess ees the information and mateialrelied upon by the Reuenue so that the asseessees canreplg to the notices Luithin tuo tueeks thereafter ;respectiue cssessees shctll be deemed to haue been issuedunder section l48A of the Income-tax Act as substitutedbA the Finance Act, 2021 and treated to be shota-causenotices in terms of section 148A(b). The respectiueAssessing Offtcers shall uithin thirty dags from todagprouide lo the as.seess ees the information and mateialrelied upon by the Reuenue so that the asseessees canreplg to the notices Luithin tuo tueeks thereafter ; (it)The requirement of conducting any enquiry with the pnoropproual of the speciJied authorttg under section 148A9(a)be dispensed tuith as a onetime meo,sure uis-d-uis thosenotices uhich haue been issued under section 148 of theunamended Act from Apil 1,opproual of the speciJied authorttg under section 148A9(a)be dispensed tuith as a onetime meo,sure uis-d-uis thosenotices uhich haue been issued under section 148 of theunamended Act from Apil 1, (tit?he Assessing Olficers shall thereafter pass an order tntern-s of section 148A(d) after following the due procedureas required under section 148A(b) tn respect of each of theconcerned assessees " ,'tern-s of section 148A(d) after following the due procedureas required under section 148A(b) tn respect of each of theconcerned assessees " ,' The Honble Supreme Court further, in order to strike a balancebetween the rights of the Revenue as well as the respective assessee'sordered that the notices issued under Section [148 ][of the ]un-amendedAct to be deemed to have been issued under Section [148,{ ]of theIncome Tax Act as substituted by [the ][Finance ][Act, ][2027, and ][also]ordered for construing or treating the notices to be the show [cause] notice in terms of Section 148A (b) while disposing of the batchmatters. The Hon'ble Supreme Court in its operative [)art [gave ]thefollowing directions in paragraph No. I 0, w'hich [aga ]in for readyreference is being reproduced herein under: "In uieu.t of the aboue and for the reasons sto.ted aboue,the present appeals are allouted in part. The impuqned commonjudgments and orders passed bg the High Court of .ludicatureat Allahabad in W. T. No. 524 of 2O21 and other allied taxappeals/ petitions, i.s/ are herebg modified and. subslituted asunder (4Tlrc impugned section 148 notrces issued kt lhe respectiueossessees u-thich uere issued under unantencled section148 of th.e Income-tox Act, ttthich uere the sltliect matterossessees u-thich uere issued under unantencled section148 of th.e Income-tox Act, ttthich uere the sltliect matterof u-tit petitions before the uaious respectiue t{igh Counsshall be deemed to haue been issued under serction 148Aof the Income-tax Act as substituted bA the l;inance Act,2021 and construed or treated to be show'cause notices tnterms of section 148A(b). Ihe Assessirtg O.tficer shatt,ulithin thirty dags from today prouide to the respectiueasseessees information and material relied upon bg theReuenue, so that the assessees can replg to the shou-cause notices uithin tuo ueeks thereafter ;shall be deemed to haue been issued under serction 148Aof the Income-tax Act as substituted bA the l;inance Act,2021 and construed or treated to be show'cause notices tnterms of section 148A(b). Ihe Assessirtg O.tficer shatt,ulithin thirty dags from today prouide to the respectiueasseessees information and material relied upon bg theReuenue, so that the assessees can replg to the shou-cause notices uithin tuo ueeks thereafter ;(ii)The requirement of conducting anu enquiry, if required,uith the prior approuol of specifted authority under section148A(a) is herebg dispensed uith as a oneltme measureub-A -uis those nottces which haue been issued undersection 48 of the unamended Act from April 1, 2021 titldate, including those which httue been quashed bg theHigh Courts.uith the prior approuol of specifted authority under section148A(a) is herebg dispensed uith as a oneltme measureub-A -uis those nottces which haue been issued undersection 48 of the unamended Act from April 1, 2021 titldate, including those which httue been quashed bg theHigh Courts. Euen otheruise as obserued hereinaboue holding angenquiry utth the prior approual of specifed authoitA is notmandatory but it is for the concerned Asses-sing Offiers tohold ang en4uiry, if required ;enquiry utth the prior approual of specifed authoitA is notmandatory but it is for the concerned Asses-sing Offiers tohold ang en4uiry, if required ; Euen otheruise as obserued hereinaboue holding angenquiry utth the prior approual of specifed authoitA is notmandatory but it is for the concerned Asses-sing Offiers tohold ang en4uiry, if required ;enquiry utth the prior approual of specifed authoitA is notmandatory but it is for the concerned Asses-sing Offiers tohold ang en4uiry, if required ; (iit) Th.e Assessing Offtcers shall the-reaJie r poss orders interms of section 148A(d) in respect of each of theconcerned assesees ; thereafter aJter follotuing theprocedure as required under section 148A nag issuenotice und.er section 148 (as substituted) ;terms of section 148A(d) in respect of each of theconcerned assesees ; thereafter aJter follotuing theprocedure as required under section 148A nag issuenotice und.er section 148 (as substituted) ;(iu) All defences which mag be auailable to ,he assesseesincluding those auailable under section 149 of the Income-tax Act and all ights ancl corltentions uhich mag beauailable to the concemed assessees and Reuenue und.erincluding those auailable under section 149 of the Income-tax Act and all ights ancl corltentions uhich mag beauailable to the concemed assessees and Reuenue und.er I,/ , the Finance Act, 2021 and in latu, shall conttnue to beauailable. 20. Keeping the aforesaid vieu, of the Honble Supreme Court, itwould be relevant at this [juncture ]to take note certain provisions ofthe.Income Tax Act which stood amended with effect from O1.04.2021by virtue of the Finance Act,2O2l. Section 144B inserted by virtue ofthe Finance Act, 2O2l , with effect from 01.O4.202 I provides forfaceless assessment and sub-Section i of the said newly insertedSection 1448 is an non-obstante clause. The relevant portion of sub-Section 1 of Section 1448 necessary for adjudication of thepreliminary issue under consideration is re-produced herein under: "Notwitlstanding anything to the conlrary contained in ang otherprouision of this Act, the assessmenl, ,"eassessment orrecomputation under sub-section (3) of section 143 of under section144 or und.er section 147 as the case may be uith respect to thecases refened to in sub-section (2), shall be made in a facelessmanner as per the follouing procedure, namelg:- (,the National Faceless Assessment Centre sholl assign thecase selected for the purposes of faceless assessmen,under this section to a specific assessmen, unit through anautomate d allocatto n sy ste m :case selected for the purposes of faceless assessmen,under this section to a specific assessmen, unit through anautomate d allocatto n sy ste m :(i,the National Faceless Assessment Centre shall intimatethe assessee that assessment in his case shall becompleted in accordance with the procedure laid downunder this section;the assessee that assessment in his case shall becompleted in accordance with the procedure laid downunder this section;(itila notice shall be serued on the assessee, through theNational FaceJess Assessmenf Centre, under sub-section(2) of section 143 or under sub-section (1) of section 142and the assessee may file his response to such noticetuithin the date spectfied therein, to the National FacelessAssessment Centre uhtch shall fonuard the same to theassessment unit";National FaceJess Assessmenf Centre, under sub-section(2) of section 143 or under sub-section (1) of section 142and the assessee may file his response to such noticetuithin the date spectfied therein, to the National FacelessAssessment Centre uhtch shall fonuard the same to theassessment unit"; 21, In continuation to the aforesaid provisions, it would be relevantto take note of yet another provision of law i.e. sub-Section 1 of Section 151A which was inscrted with effect from Oi.ll.2O2O.lt refersto faceless assessment of income escaping assessment u,hich wouldbe relevant for better understanding of the issue being clecided in thepresent batch of writ petitions, which again for ready' reference isbeing re-produced herein under: 21, In continuation to the aforesaid provisions, it would be relevantto take note of yet another provision of law i.e. sub-Section 1 of Section 151A which was inscrted with effect from Oi.ll.2O2O.lt refersto faceless assessment of income escaping assessment u,hich wouldbe relevant for better understanding of the issue being clecided in thepresent batch of writ petitions, which again for ready' reference isbeing re-produced herein under: "The Central Gouentment mag make a scheme, bg rtotificatiott inthe Official Ga.zette, fo, the purposes of assessment,reassessment or re-computation under section 147 or issuance ofnotice under section 148 [or conducting of enquiies or issuance ofshow-cause notice or passing of order under section l48Al orsanction for issue of such notice under section 151, .so as toimport greater efftciencg, transparencg and accountabilitll bg (a) eliminating the interface betueen the income-tax authoityand the ossessee or ang other person to the' extentte chno log icallg fe as ib le ;and the ossessee or ang other person to the' extentte chno log icallg fe as ib le ; (b) optimising utilisation of the resources through ecorutmies ofscale and functional specialisation;scale and functional specialisation; (c) introducing a team-based cssessment, reassesstnerTt, re-computation or issuance or sanction of notice u[th dgnamiccomputation or issuance or sanction of notice u[th dgnamic_juisdiction". 22- Similarly, the Central Board of Direct Taxes had also amended Section 13O of the Income Tax Act so far as conferring [jurisdiction ]ofthe Income Tax Authorities in the light of the faceless assessmentprocedure being adopted. The amended Section 13O and sub-Section1 which is rclevant for the present issue under consideration again forready reference is being reproduced herein under: "The CentroL Gouernment may make a scheme, by nottftctrtion Inthe Olficial Cazette, for the purpose of (a) exercise of all or ang of the powers and perfonnatrce r-'f all orang of the functions anferred orl, or, as the case nag be,ang of the functions anferred orl, or, as the case nag be,assigned to income-tuc authortties bq or under lhis Act asrefened to in section 120; orrefened to in section 120; or I /' / (b) uesting tle jurisdiction with the Assessing Officer as referredto in section 124; orto in section 124; or (c) exercise of poLuer to transfer cases under section 127; or (d) exercise of juisdiction in case of change of incumbencg asreferred to in section 129,referred to in section 129, so as to impart greater efficiencg, tran-sparenc!4 and accountabilitybg (i) eltminating the interface betueen the income-tax authoitgand the assessee or ang other person, to the extenttechnolog icallg feas ibl e ;and the assessee or ang other person, to the extenttechnolog icallg feas ibl e ; e ;;(ii) optimising utilisation of the resources through economies ofscale and functional speciatisation;scale and functional speciatisation; (iii) introducing a team-based exercise of powers andperformance of functions bg tu.to or more income-taxauthoities, cono)rrentlA, in respect of ang area or personsor classes or cases, utith dgnamic [juisdiction."]performance of functions bg tu.to or more income-taxauthoities, cono)rrentlA, in respect of ang area or personsor classes or cases, utith dgnamic [juisdiction."] 23. In furtherance to the powers conferred under sub-Sections 1 and 2 of Section 130 of the aforesaid Income Tax Act, the CentralBoard of Direct Taxes framed a scheme called as the "Facelessjurisdiction of Income Tax Authorities Scheme, 2022."A plain reading of the aforesaid notification would clearly reflect thatas has been amended under Section 13O. The Central Board of DirectTaxes has framed a scheme which defines the Act to be the IncomeTax Act and it specilically dehnes automated allocation which isdefined under Section 2 (1)(b), which again for ready reference is beingre-produced herein under: "ln this Scheme, anless the context othenttise requires, (a) "Act" means the Income-tox Act, 1961 (43 of 1961); 23. In furtherance to the powers conferred under sub-Sections 1 and 2 of Section 130 of the aforesaid Income Tax Act, the CentralBoard of Direct Taxes framed a scheme called as the "Facelessjurisdiction of Income Tax Authorities Scheme, 2022."A plain reading of the aforesaid notification would clearly reflect thatas has been amended under Section 13O. The Central Board of DirectTaxes has framed a scheme which defines the Act to be the IncomeTax Act and it specilically dehnes automated allocation which isdefined under Section 2 (1)(b), which again for ready reference is beingre-produced herein under: "ln this Scheme, anless the context othenttise requires, (a) "Act" means the Income-tox Act, 1961 (43 of 1961); (b) "automated allocation" means an algoithm forrandomised allocation of cases, by using suitabletechnological tools, including artificial intelligence andmachine leaming, u.tith a uieu to optimise the use ofresources;"randomised allocation of cases, by using suitabletechnological tools, including artificial intelligence andmachine leaming, u.tith a uieu to optimise the use ofresources;" Further Section 3 of the said scheme deals with vesting of thejurisdiction \4,ith the Assessing Oflicer, which again for readyreference is being reproduced herein under: " uesting tLrc [juisdiction ]tuith the Assessing Ofjicer os rqfened toin section 124 of the Act, shall be in o faceless manner, throughautomated allocation, in accordance with ond to the extentprouided in- (i) Section 1448 of the Act u-tith reference to makinqfaceless [assessmenf of ][total ][income ][or loss orfassessee; ]['] 24. In furtherance to the aforesaid notification, the Central Board ofDirect Taxes again in exercise of its powers conferred under sub-Sections I and 2 of Section 151A framed another scheme called as thee-assessment of Income Escaping Assessment Scheme 2022, whichdehnes automated allocation is reproduced herein under: "In this Scheme, unless the context othertuise requin:s,- (a) "Act" means the Income-tax Act, 1961 (43 of 1961); (b) "automated allocation" means an algorithm forrandomised alLocation of cases, bg using suitabletechnological tools, including artificial intelli.qence andmochine leaming, uith a uieut to optimise the use ofresources."randomised alLocation of cases, bg using suitabletechnological tools, including artificial intelli.qence andmochine leaming, uith a uieut to optimise the use ofresources." And the scope of the scheme again has been envisaged in Section 3 ofthe said scheme, which again for ready reference is being reproducedherein under: "For the purpose of this Scheme,- (a) assessment, recssessment or recomputalion undersectopm 147 of the Act,sectopm 147 of the Act, (b) issuance of notice under section 148 of the A<:t, shall be through automated allocation, tn accordance tuith iskmanagement strategA formulated by the Board as referred to irtsection 148 of the Act for issuance of notice, and in a facelessmanner, to the extent prouided tn section 1448 of the Act tuithreference to making assessment or reassessment of total income"or loss orf assessee. 25. A plain reading of the aforesaid two notifications issued by theCentral Board of Direct Taxes dated 28.O3.2022 aod 29.O3.2O22, itwould clearly indicate that the Central Board of Direct Taxes was veryclear in its mind when it framed the aforesaid two schemes withrespect to the proceedings to be drawn under Section 148A, that is tohave it in a faceless manner. There were two mandatory conditionswhich were required to be adhered to by the Department, firstly, theallocation being made through the automated allocation system inaccordance with the risk management strates/ formulated by theBoard under Section 148 of the Act. Secondly, the re-assessment hasto be done in a faceless manner to the extent provided under Sectionl44B of the Act. 25. A plain reading of the aforesaid two notifications issued by theCentral Board of Direct Taxes dated 28.O3.2022 aod 29.O3.2O22, itwould clearly indicate that the Central Board of Direct Taxes was veryclear in its mind when it framed the aforesaid two schemes withrespect to the proceedings to be drawn under Section 148A, that is tohave it in a faceless manner. There were two mandatory conditionswhich were required to be adhered to by the Department, firstly, theallocation being made through the automated allocation system inaccordance with the risk management strates/ formulated by theBoard under Section 148 of the Act. Secondly, the re-assessment hasto be done in a faceless manner to the extent provided under Sectionl44B of the Act. 26. After the introduction of the above two schemes,it becomes mandatory for the Revenue to conduct/ initiate proceedingspertaining to reassessment under Section 147, l4a & 148A of the Actin a faceless manner. Proceedings under Section 147 and. Section 148of the Act would now have to be taken as per the procedure legislatedby the Parliament in respect of reopening/ re-assessment i.e.,proceedings under Section 148A of the Act. L 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 ]officer 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 or 29 .O4 .2022, i.e.,