The Bombay High Court ruled that reassessment notice issued by JAO is invalid.
The bench said that it is now well settled that for a notice to be validly issued for reassessment under Section 148 of the Act, the Respondent-Revenue would need to be compliant with Section 151A, which has been interpreted and analysed in detail by a Division Bench of this Court in the case of Hexaware Technologies Limited Vs. Assistant Commissioner of Income Tax & Ors.
The bench further observed that the Respondent-Revenue is not in compliance with the Scheme notified by the Central Government pursuant to Section 151A(2) of the Act. The Scheme has also been tabled in Parliament and is in the character of subordinate legislation, which governs the conduct of proceedings under Section 148A as well as Section 148 of the Act. In view of the explicit declaration of the law in Hexaware, the grievance of the Petitioner-Assessee insofar as it relates to an invalid issuance of a notice is sustainable and consequently, the very manner in which the proceedings have been initiated, vitiates the proceedings.
The tribunal held that there is no dispute that the JAO had no jurisdiction to issue the notice.
Facts
The Writ Petition under Article 226 of the Constitution of India has been filed to challenge a notice dated 18 March 2024 issued to the Petitioner under Section 148 of the Income Tax Act, 1961, and also the underlying prior notice and order under Section 148A(b) and Section 148(A)(d) of the Act, respectively. The reassessment under Section 148 of the Act has been initiated in respect of returns filed by the Petitioner-Assessee for the Assessment Year 2017-18.
Case Information
Case Name: Sterlite Power Transmission Limited v/s Assistant Commissioner of Income Tax Circle
Judicial Level & Location : Bombay High Court
Case Number : Writ Petition No. 10077 OF 2024
Date of Decision : 22/07/2024
Decision in favor of: Appellant
Judges: G. S. Kulkarni And Somasekhar Sundaresan