Faceless Notice for Income Tax Reassessment u/s.148A: Telangana High Court
The Telangana High Court has underlined that notices issued by the income-tax department to taxpayers for reassessment of returns under Section 148A of the Income Tax Act must now follow a faceless approach.
The court emphasized that the amended provision of the I-T Tax Act, 1961, introduced under the Finance Act, 2021, mandates issuing reassessment notices and subsequent proceedings in a faceless manner.
Referring to the introduction of two schemes by the Central Board of Direct Taxes (CBDT) regarding proceedings under Section 148A, the High Court outlined two essential conditions for the I-T department. Firstly, allocation must be carried out through the automated allocation system, aligning with the risk management strategy defined by the Board under Section 148. Secondly, reassessment must be conducted in a faceless manner to the extent provided.
A division bench led by Justice P. Sam Koshy issued these directions while addressing a set of petitions pertaining to a jurisdictional matter. The petitioners challenged notices and orders issued by the I-T officer of Ward 141 in Hyderabad, which called for reassessment due to escaped assessment and proceeded to make determinations.
The petitioner’s counsel mentioned that the CBDT had issued a notification dated 29.03.2022, under a scheme named the e-assessment of Income Escaping Assessment Scheme 2022, which became effective on the same day.
According to this scheme, assessments, reassessments, or re-computations under Section 147 of the I-T Act and the issuance of notice under Section 148A should be conducted through automated allocation. Moreover, the faceless notices must be issued as outlined in Section 144B.
Case Number: WP25903/2022; Petitioner: Kankanala Ravindra Reddy; Respondent: The Income Tax Officer & Others; Case Filing Date: 16 June 2022; Judgement Date: 14 September 2023
Follow the link to access the related CBDT Notification dated. 29 March 2022 on “e-Assessment of Income Escaping Assessment Scheme, 2022”–https://incometaxindia.gov.in/communications/notification/notification-18-2022.pdf
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