Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2025 Supreme(Online)(Mad) 29605

IN THE HIGH COURT OF JUDICATURE AT MADRAS
C.Saravanan, J
Ontivillu Gopidoss Jothilakshmi – Appellant
Versus
The Income Tax Officer, Non Corporate Ward-2(3), The Chief Commissioner of Income-Tax – Respondent
W.P.(MD) No.13626 of 2024 | W.M.P.(MD) Nos.11999 and 12000 of 2024

Advocates:
For the Appellants/Petitioners: Mr.G.Baskar
For the Respondents: Mr.N.Dilip Kumar Standing Counsel

The jurisdictional Income Tax Officer is authorized to issue notices under Section 148A(d) without prior amendment to the e-Assessment Scheme, and procedural compliance is mandatory for valid assessments.

Headnote:(A) Income Tax Act, 1961 - Sections 148, 148A, 149, 151, and 144B - Writ Petition challenging notice issued under Section 148A(d) for the assessment year 2017-2018 - The petitioner failed to file a Return of Income, leading to notice for escaped assessment of Rs.1,30,36,000/- - The Income Tax Officer complied with procedural requirements under Section 148A, including obtaining prior approval from the Chief Commissioner - The court upheld the validity of the notice and the authority of the jurisdictional officer to issue it. (Paras 1, 2, 4, 78, 85)

(B) Procedural Compliance - The court emphasized the necessity for adherence to the procedural requirements under the Income Tax Act for issuing notices and conducting assessments, particularly in the context of faceless assessments. (Paras 18, 25, 70)

Table of Content
1. petitioner failed to file income return. (Para 1 , 3 , 4)
2. procedural objections to notice issuance. (Para 5 , 6 , 10 , 11 , 12)
3. jurisdictional authority's role in notice issuance. (Para 14 , 15 , 18)
4. faceless assessment procedural changes. (Para 19 , 20 , 21 , 22 , 23)
5. faceless assessment aims to reduce interface. (Para 24 , 25 , 26)
6. legislative changes to assessment procedures. (Para 27 , 28 , 29)
7. faceless assessment confined to specified cases. (Para 30 , 31 , 32)
8. e-assessment scheme amendments. (Para 33 , 34 , 35)
9. central government's scheme for faceless assessment. (Para 40 , 41 , 42)
10. automated allocation for assessment efficiency. (Para 43 , 44 , 45)
11. scope of e-assessment scheme defined. (Para 46 , 47 , 48)
12. limitations on faceless assessment procedures. (Para 49 , 50 , 51)
13. amendments to assessment provisions. (Para 52 , 53 , 54)
14. clarification of assessment provisions. (Para 55 , 56 , 57)
15. continued limitations on notice issuance. (Para 58 , 59 , 60)
16. approval required for notice issuance. (Para 61 , 62 , 63)
17. definition of assessing officer clarified. (Para 64 , 65 , 66)
18. procedure for issuing notice under section 148. (Para 67 , 68 , 69)
19. court's conclusion on jurisdictional validity. (Para 70 , 71 , 72)
20. judicial precedents cited for support. (Para 73 , 74 , 75)
21. notice issuance confirmed within jurisdiction. (Para 76 , 77)
22. assessment within statutory limits. (Para 78 , 79)
23. tax amount determined for assessment. (Para 80 , 81)
24. jurisdictional authority's actions upheld. (Para 82 , 83)
25. writ petition dismissed; no costs. (Para 84 , 85 , 86)

ORDER

The petitioner has challenged the Impugned Order dated 27.03.2024, issued by the 1^st respondent under Section 148A(d) of the Income Tax Act, 1961.

2. By the Impugned Order dated 27.03.2024, the 1^st respondent, who is the jurisdictional Income Tax Officer of the petitioner, has held as under:-

“In view of the above facts, the income chargeable to tax has escaped assessment to the tune of Rs.1,30,36,000/- in terms of section 147 of the Act.

7.All the due procedures laid down u/s 148A of the act have been duly complied with and after having perused the information available on record and the material evidence gathered, I am satisfied that all the conditions mentioned u/s 149(1) are fulfilled and it is a fit case to issue notice u/s 148 of the Income Tax Act, 1961 for the A.Y. 2017-18.

8. This order is issued under the prior approval of the CCIT, Madurai as provided u/s 151(ii) of the Income Tax Act, 1961.”

3. The facts on record indicate that the petitioner appears to have had certain cash transactions and also had effected the sale of immovable property during the Financial Year 2016-2017. The petitioner had however failed to file a Return of Income for the corresponding Assessment Year 2017-2018.

4. In these circumstances, the petitioner was issued with a notice by the 1^st respondent under Section 148A(b) of the Income Tax Act, 1961 on 30.01.2024. The petitioner has replied to the same vide two replies dated 11.03.2024 and 12.03.2024, which were ultimately culminated in the Impugned Order.

5. It is case of the petitioner that the Impugned Order dated 27.03.2024 is contrary to the procedure prescribed under Section 151A of the Income Tax Act, 1961, inasmuch as only the Authority viz., Faceless Assessing Officer is entitled to issue a notice under Section 148A(b) of the .

6. In this connection, a reference was made to the Notification dated 29.03.2022 of the Central Board of Direct Taxes bearing reference Notification No.18/2022/F.No.370142/16/2022-TPL (Part 1).

7. That apart, it is submitted that as per Section 151 of Income Tax Act, 1961, before a notice is issued, sanction has to be obtained.

8. It is submitted that in this case, no sanction has been obtained as no such sanction proceedings were enclosed along with the Impugned Order. However, the Impugned Order merely states that the order has been issued with the p

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2025 Supreme(Online)(Mad) 29605

IN THE HIGH COURT OF JUDICATURE AT MADRASC.Saravanan, JOntivillu Gopidoss Jothilakshmi – AppellantVersusThe Income Tax Officer, Non Corporate Ward-2(3), The Chief Commissioner of Income-Tax – RespondentW.P.(MD) No.13626 of 2024 | W.M.P.(MD) Nos.11999 and 12000 of 2024

The jurisdictional Income Tax Officer is authorized to issue notices under Section 148A(d) without prior amendment to the e-Assessment Scheme, and procedural compliance is mandatory for valid assessments.

IN THE HIGH COURT OF JUDICATURE AT MADRAS
C.Saravanan, J
Ontivillu Gopidoss Jothilakshmi – Appellant
Versus
The Income Tax Officer, Non Corporate Ward-2(3), The Chief Commissioner of Income-Tax – Respondent
W.P.(MD) No.13626 of 2024 | W.M.P.(MD) Nos.11999 and 12000 of 2024