Assessments under central charge and international taxation would have to be completed under faceless assessment scheme: Bombay HC
Facts:
1. Writ petition under Article 226 of the
Constitution of India was filed challenging notice dated 31 March, 2021 issued to the petitioner under Section 148A(b); order dated 19 April, 2024 passed under Section 148A(d) and the notice dated 19 April, 2024 (“impugned notice”issued under Section 148 of the Income Tax Act, 1961 (“the Act”) by the Jurisdictional Assessing Officer, International Tax Ward (4)(2)(1),
2. CBDT had issued an order dated 31 March, 2021 saying that the assessment orders in cases assigned to Central Charges and assessment orders in cases assigned to International Tax Charges are not required to be passed under the National Faceless Assessment Centre (NaFAC).
3. The provisions of section 151A read with the provisions of section 144B and the scheme notified by the Central Government vide a Notification dated 29 March, 2022 under section 151A of the Income Tax Act provide that the respondents are under a mandate to follow the faceless mechanism, in resorting to any procedure/action under section 148A.
Hon Bombay HC held as under:
1. The scheme as framed under section 151A and notified under the notification dated 29 March, 2022 does not include the applicability, inclusion or even reference to the orders dated 31 March, 2021 and 6 September, 2021.
2. Sec 151A is not subject to the other provisions of the Act when it empowers that the Central Government to make a scheme in the context of section 147 or for issuance of notice under section 148A and for conducting a prior enquiry by issuance of a show-cause notice or passing order under section 148A of the Act.
3. The provisions is intended with an object of achieving efficiency, transparency and accountability inter alia by eliminating the interface between the income tax authority, optimizing utilization of the resources through economies of scale and functional specialization, and by introducing a team based assessment, reassessment, recomputation or issuance or sanction of notice with dynamic jurisdiction, as set out in clauses (a), (b) and (c) of sub-section 151A of the Act.
4. We accordingly reject the contentions as urged by the revenue that the present case would fall outside the applicability of the said provisions and the faceless scheme.
The copy of the order is attached herewith:
