M/S.Perur Builders Private Limited vs The Income Tax Officer

[Cites 9, Cited by 0] Madras High Court M/S.Perur Builders Private Limited vs The Income Tax Officer on 4 April, 2025 Author: Krishnan Ramasamy Bench: Krishnan Ramasamy WP No. 12160 of 2025 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 04-04-2025 CORAM THE HONOURABLE MR JUSTICE KRISHNAN RAMASAMY WP No. 12160 of 2025 AND WMP NO. 13721 OF 2025 M/s.Perur Builders Private Limited, Rep. by its Authorized Signatory, K.C.Palanisamy, No.78, Cheran Towers, Arts College Road, Coimbatore-641 018 Petitioner Vs 1. The Income Tax Officer Corp Ward 1-Coimbatore, Coimbatore Main Building, 63, Race Course Road, Coimbatore-641 018. 2. The Central Board of Direct Taxes, Department of Reveue, Ministry of Finance, North Block, New Delhi-110 002. 3. The National Faceless Assessment Center, Income Tax Department, https://www.mhc.tn.gov.in/judis ( Uploaded on: 30/04/2025 05:57:00 pm ) WP No. 12160 of 2025 Ministry of Finance, New Delhi-110 002. Respondents PRAYER: Writ Petition filed under Article 226 of the Constitution of India praying for the issuance of a Writ of Certiorari to call for the records in DIN and Notice No ITBA/AST/F/ 148A(SCN)-1/2024-25/ 1074632970(1) dated 18.03.2025 issued under Section 148A(1) of the Income Tax 1961 for PAN AABCP7544E for the Assessment Year 2020-21 on the file of the 1 st Respondent and quash the same. For Petitioner: Mr.N.Ramakrishnan For M/s.Ark Law Associates For Respondent: Dr.B.Ramaswamy, Senior Standing Counsel ORDER This Writ Petition has been filed challenging the notice dated 18.03.2025 issued under Section 148A(1) of the Income Tax 1961 issued by the 1 st Respondent and to quash the same. 2. Today, when this writ petition is taken up for hearing, the learned https://www.mhc.tn.gov.in/judis ( Uploaded on: 30/04/2025 05:57:00 pm ) WP No. 12160 of 2025 counsel appearing for the petitioner would submit that the 1st respondent has no power or authority to issue the notice under Section 148A of the Income Tax Act, 1961 and this Court has already dealt with the similar situation in W.P.Nos.25223 & 25227 of 2024 and dismissed the same on 20.12.2024, granting liberty to the petitioner to file reply to the notice and the same may be followed in this case also. 3. The learned Senior Standing Counsel appearing for the respondents also submitted that this writ petition may also be decided in the light of the aforesaid decision. 4. In the light of the order passed by this Court on 20.12.2024 in W.P.Nos.25223 & 25227 of 2024, this Court pass the following orders: i) As far as the issuance of notice under Section 148 of the IT Act is concerned, only the JAO will have exclusive jurisdiction. ii) As far as the assessment, re-assessment or re-computation in terms of the provisions of Section 147 of the IT Act is concerned, both https://www.mhc.tn.gov.in/judis ( Uploaded on: 30/04/2025 05:57:00 pm ) WP No. 12160 of 2025 the FAO as well as the JAO will have concurrent jurisdiction. iii) The Directorate of Income Tax (Systems) shall have the power to make allotment of cases, through Automated Allocation System to allot cases for issuance of notice under Section 148A/148 in eligible cases based on the risk management strategy in terms of the provisions of the Scheme dated 29.03.2022, to the Jurisdictional Assessing Officer based on the PAN card jurisdiction. iv) The JAO shall issue notice under Section 148 of the IT Act, based on the cases allotted by the Directorate of Income Tax (Systems) in faceless manner, by virtue of signing it digitally without referring their name, to the e-mail id of the registered account of the Assessee through the ITBA Portal. v) In the present writ petition, the case was allotted by the Directorate of Income Tax (Systems) through Automated Allocation System, based on the risk management strategy formulated by the Board as referred to in Section 148 of the IT Act, for issuance of notice to the Jurisdictional Assessing Officer, who had thereafter sent the Section 148 notice to the registered e-mail account of the Assessee from the ITBA Portal, in faceless manner. Thus, the issuance of the https://www.mhc.tn.gov.in/judis ( Uploaded on: 30/04/2025 05:57:00 pm ) WP No. 12160 of 2025 impugned notice was duly in accordance with the Scheme, except the procedural lapse of mentioning the name of the JAO. vi) The said procedural errors will not vitiate the initiation of the proceedings for issuance of notice under Section 148 of the IT Act since such errors are curable in nature. vii) In terms of the provisions of Section 151A of the IT Act, still the JAOs shall have to obtain prior approval from the higher authority for issuance of Section 148 notice under the Scheme in faceless manner. viii) The JAO shall upload in the ITBA Portal, the relevant documents along with the reply received for Section 148 notice from the Assessee. ix) Thereafter, the Directorate of Income Tax (Systems) forward the Section 148 cases to NaFAC to take further action. Immediately thereupon, the NaFAC shall assume the jurisdiction in terms of Section 144B of the IT Act. https://www.mhc.tn.gov.in/judis ( Uploaded on: 30/04/2025 05:57:00 pm ) WP No. 12160 of 2025 x) Once the NaFAC assumed its jurisdiction subsequent to the receipt of the information pertaining to Section 148 cases from the Directorate of Income Tax (Systems), the NaFAC shall issue the notice under Section 143(2) or 142(1) of the IT Act calling for the further information from the Assessee. xi) In terms of Sub-Section (2) of Section 144B of the IT Act, the Board shall have power to specify the territorial area, or persons or class of persons, incomes or class of incomes, or cases or class of cases, in which, the assessment shall be made in faceless manner. xii) The guidelines issued on 24.05.2023, by the Board, is well within the powers available to them, in terms of the provisions of Sub- Section (2) of Section 144B of the IT Act and issuance of such guidelines will not amount of making any modification, granting exemptions or adaptation of the terms and conditions specified in the Schemes dated 28.03.2022 and 29.03.2022. The Board has exercised the power only in terms of the provisions of Section 144B(2) of the IT Act and not in terms of the provisions of Section 151A(2) of the IT Act. The proviso to Sub-Section (2) of Section 151A of the IT Act deals with the aspect that the Central Government shall not issue any direction after 31.03.2022 to make any exemption, modification and https://www.mhc.tn.gov.in/judis ( Uploaded on: 30/04/2025 05:57:00 pm ) WP No. 12160 of 2025 adaptation with regard to the Schemes dated 28.03.2022 and 29.03.2022. In the present case, the guidelines issued in terms of Sub- Section (2) of Section 144B of the IT Act will not amount to the directions issued by the Central Government in terms of Sub-Section (2) of Section 151A of the IT Act. xiii) The power of Central Government to issue any direction in terms of Sub-Section (2) of Section 151A of the IT Act read with its proviso, will be entirely different from the issuance of guidelines, by the Board, with the power available in terms of Sub-Section (2) of Section 144B of the IT Act. xiv) The provisions of Section 144B of the IT Act is both in the nature of substantive as well as procedural. xv) While the FAO performing the duties of faceless assessment in faceless manner, the JAO is also equally performing his duties, in faceless manner, while issuing the notice under Section 148A/148 of the IT Act, as intended in the Scheme. https://www.mhc.tn.gov.in/judis ( Uploaded on: 30/04/2025 05:57:00 pm ) WP No. 12160 of 2025 5. For all these reasons, these writ petitions are liable to be dismissed. Accordingly, this writ petition is dismissed. No costs. Consequently, the connected miscellaneous petitions are also closed. 6. While dismissing this petition, this Court grants liberty to the petitioners to file their reply within a period of 30 days from the date of receipt of copy of this order, in which case, the Authorities are directed to consider the said reply and pass orders after affording an opportunity of personal hearing to the petitioner. 04-04-2025 Index:Yes/No Speaking/Non-speaking order Internet:Yes Neutral Citation:Yes/No arr https://www.mhc.tn.gov.in/judis ( Uploaded on: 30/04/2025 05:57:00 pm ) WP No. 12160 of 2025 To 1 The Income Tax Officer, Corp Ward 1-Coimbatore, Coimbatore Main Building, 63, Race Course Road, Coimbatore-641 018. 2.The Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, North Block, New Delhi-110 002 3.The National Faceless Assessment Center, Income Tax Department, Ministry of Finance, New Delhi-110 002. https://www.mhc.tn.gov.in/judis ( Uploaded on: 30/04/2025 05:57:00 pm ) WP No. 12160 of 2025 KRISHNAN RAMASAMY, J. arr W.P.No.12160 of 2025 28.04.2025 https://www.mhc.tn.gov.in/judis ( Uploaded on: 30/04/2025 05:57:00 pm ) WP No. 12160 of 2025 https://www.mhc.tn.gov.in/judis ( Uploaded on: 30/04/2025 05:57:00 pm ) WP No. 12160 of 2025 04-04-2025 https://www.mhc.tn.gov.in/judis ( Uploaded on: 30/04/2025 05:57:00 pm )