KAMLESH SAROTILAL AGRAWAL vs. THE PRINCIPAL COMMISSIONER INCOME TAX AND ANOTHER

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WP/5404/2024HC BombayHCBM03019220202419 July 2024Author: HON'BLE SHRI JUSTICE RAVINDRA V. GHUGE,HON'BLE SHRI JUSTICE Y. G. KHOBRAGADE3 pages
AI SummaryRemanded

What did the High Court hold?

The High Court held that the issue regarding the validity of a notice not issued by the Faceless Assessing Officer (FAO) under the scheme framed under Section 151A of the Income Tax Act, 1961, is settled by the judgment in Hexaware Technologies Limited (supra). Following this precedent, the Court found that if the notice was not issued by the FAO, it is unsustainable. Consequently, the notice issued under Section 148 of the Income Tax Act, 1961, was quashed and set aside. Any further demand notice or penalty notice issued in furtherance of this unsustainable notice would also not survive and were accordingly set aside. All contentions of both sides, except those covered by the Hexaware Technologies judgment and those available in proceedings initiated by the FAO, were left open.

What were the facts?

The petitioner, Kamlesh Sarotilal Agrawal, filed a Writ Petition before the Bombay High Court at Aurangabad challenging a notice. The primary contention raised was that the impugned notice could not have been issued by the Jurisdictional Assessing Officer (JAO) but should have been issued by the Faceless Assessing Officer (FAO) in terms of Section 151A of the Income Tax Act, 1961. The respondents were the Principal Commissioner Income Tax and another. The High Court heard arguments from both sides. The parties submitted that a judgment dated 03.05.2024, delivered in WP No. 1778/2023 (Hexaware Technologies Limited Vs. the Assistant Commissioner of Income Tax and Others), settled this specific issue.

What were the issues?

1. Whether the notice issued under Section 148 of the Income Tax Act, 1961, is unsustainable for not being issued by the Faceless Assessing Officer (FAO) as contemplated by the scheme framed under Section 151A of the Income Tax Act, 1961? Assessee's contentions: The notice could only have been issued by the FAO under Section 151A of the Income Tax Act, 1961, and not by the Jurisdictional Assessing Officer (JAO). The notice issued by the JAO is therefore unsustainable. Revenue's contentions: Not recorded in the judgment.

Which sections of the Income-tax Act were involved?

Section 151A,Section 148

AI-generated summary — verify with the full judgment below

*1* 972y wp5404o24 IN THE HIGH COURT OF JUDICATURE AT BOMBAY BENCH AT AURANGABAD 972 WRIT PETITION NO. 5404 OF 2024 KAMLESH SAROTILAL AGRAWAL VERSUS THE PRINCIPAL COMMISSIONER INCOME TAX AND ANOTHER ... Shri Raviraj R. Chandak, Advocate for the Petitioner. Mrs.Kalpalata Patil Bharaswadkar, Advocate for Respondent Nos.1 and 2/ Department. ...

CORAM : RAVINDRA V. GHUGE &

Y. G. KHOBRAGADE, JJ. DATE :- 19th July, 2024 Per Court :-

1.

We have heard the learned Advocates for the respective sides. Several issues have been raised in this Petition, inter alia, that the impugned notice could not have been issued by the Jurisdictional Assessing Officer (JAO) and which could have been issued in terms of the provisions of Section 151(A) of the Income Tax Act, 1961 by the Faceless Assessing Officer (FAO).

2.

The learned Advocates for the respective sides 2024:BHC-AUG:15580-DB

*2* 972y wp5404o24 submit that the judgment dated 03.05.2024, delivered at the Principal Seat in WP No.1778/2023 (Hexaware Technologies not in accordance with the scheme framed u/s 151(A) of the Income Tax Act, 1961, the view taken in Hexaware Technologies (supra), would be applicable to this case.

4.

In view of the above and considering the conclusions drawn in Hexaware Technologies (supra), the notice issued u/s 148 would be unsustainable. The same is, therefore, quashed and set aside. If any further demand notice or penalty notice in furtherance thereof, would also not survive and stands set aside.

*3* 972y wp5404o24

5.

With the above directions, this Writ Petition is disposed off. Needless to state, all the contentions of both the sides, save and except, those which are covered by the Hexaware Technologies (supra), and which are available to the parties in a proceeding, which can be initiated by the FAO under the scheme framed u/s 151(A) of the Income Tax Act, are left open. kps (Y. G. KHOBRAGADE, J.) (RAVINDRA V. GHUGE, J.)

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