Section 151A of the Income Tax Act
The decision most relied on for Section 151A is Kunhayammed v. State of Kerala (245 ITR 360), cited in 361 of the 862 judgments on BharatTax that turn on this section.
Leading authorities on Section 151A
An order refusing special leave to appeal to the Supreme Court, whether speaking or non-speaking, does not attract the doctrine of merger, meaning the order under challenge is not substituted.
A notice issued under section 148 of the Income Tax Act is invalid if the Income Tax Department fails to follow the prescribed procedures, including obtaining the necessary approvals under section 151 or adhering to the faceless assessment scheme mandates under section 151A.
The project completion method and the percentage of completion method are both recognized methods for recognizing income from real estate contracts.
The doctrine of merger applies when appellate jurisdiction is invoked, causing the operative part of a lower court's order or decree to merge into the superior court's order, whether it reverses, modifies, or affirms the original decision. The application of this doctrine depends on the nature of the appellate or revisional order, the scope of statutory provisions, and the subject matter challenged.
The faceless assessment scheme under Section 151A applies from the stage of issuing show cause notices under Sections 148 and 148A, and non-compliance with the scheme or related notifications vitiates the subsequent assessment proceedings. Assessment proceedings are considered to commence upon the issuance of such a show cause notice.
A notice under section 148 of the Income-tax Act, 1961, cannot be issued by the Jurisdictional Assessing Officer after the introduction of faceless assessment under Section 151A read with Section 144B. Such a notice is invalid as it defeats the object of faceless assessment and is not in consonance with CBDT notifications.
Section 124(3) of the Income-tax Act, which restricts an assessee from objecting to an Assessing Officer's jurisdiction, applies only to disputes concerning territorial jurisdiction as conferred by Section 120(1) or (2). It does not apply to objections regarding the Assessing Officer's inherent jurisdiction to frame an assessment.
Section 144B of the Income Tax Act does not completely divest the Jurisdictional Assessing Officer (JAO) of their power to assess or reassess, even with the introduction of the Faceless Reassessment Scheme.
Dismissal of a Special Leave Petition (SLP) in limine without detailed reasons does not establish a binding precedent under Article 141 of the Constitution. Such dismissal signifies that the case was not deemed worthy of examination for reasons other than its merits.