validity of notices u/s 148A

[satyanveshi]

It is observed that public are receiving large number of notices issued u/s 148A of the IT act asking clarifications on various financial transactions entered into by the assessees before the department issuing the reopening notices u/s 148. In this connection, it is observed it is observed that the new section 148A which has come into existence with effect from 01.04.2021 and this section was governed by sec.151A. Further, the new section ie section 151A  is not activated till a notification is issued on 29.03.2022. Since, sec 151A is not activated till 29.03.2022 automatically the new section 148A is also not activated till 151A was activated ie. till 29.03.3022. Since the new section u/s 148A is dormant till 29.03.2022, whether the department can issue notices under a dormant section which was not activated till a notification is issued on 29.03.2022. accordingly, the notices issued u/s 148A before 29.03.3022 are valid in the eyes of law.

secondly, on 29.03.2022, a notification is issued u/s 151A which is enclosed ...




The above notification clearly says the notice u/s 148 should be issued in the faceless manner through automated allocation. But the notices were found to be issued by AOs without being followed the procedure of automated allocation. Under these circumstances whether the said notice issued by normal AOs without following the procedure of automatic allocation and without following faceless procedure are valid in law.

[satyanveshi]

Though I have posted this query nearly one year back, it didnot attract any attention from the stake holders... Recently, I found a decision of Telangana high court decision in the case of kankanala Ravindra reddy on the same... The notices issued by JAOs without following faceless manner are found to be knocked down by the honourable high court... Other than, Telangana high court any high court has given decision on similar lines or different lines...

[satyanveshi]

Though I have posted this query nearly one year back, it didnot attract any attention from the stake holders... Recently, I found a decision of Telangana high court  in the case of kankanala Ravindra reddy on the same issue.. The notices issued by JAOs without following the procedure of faceless manner are found to be knocked down by the honourable high court... Other than, Telangana high court any other high court has given decision on similar lines or different lines...

[Ashish kumar]

Your interpretation is perfect. I fully agree with you

[satyanveshi]

The retrospective amendment made JAO FAO issue of sec 151A and consequential notification  and recent amendment made in sec. 147A was not viewed properly by the stake holders. To start with the newly inserted section is reproduced hereunder..

"147A. Notwithstanding anything contained in any judgement, order
or decree of any court or in section 151A or in any scheme framed
thereunder, for the removal of doubts, it is hereby clarified that the
Assessing Officer for the purposes of sections 148 and 148A shall mean
and shall always be deemed to have meant to be an Assessing Officer other
than the National Faceless Assessment Centre or any assessment unit
referred to in sub-section (3) of section 144B.".

A hormonious reading of 151A and the above mentioned 147A, what we understand is....

Issuance notices u/s 148A and 148 are also in Faceless manner through automated allocation... Of course, for both these sections the officer need not be assessment Unit or NafAc... Ok JAO  ( or any other officer ) also but what about the restriction imposed in sec 151A....faceless manner and automated allocation.... This restriction enacted by sec 151A is nowhere removed by enacting 147A....

Then what newly inserted 147A really communicates... AO (other than NafAc or AU) is empowered to issue these Notices of 148A and 148 in a faceless manner through automated allocation...



Let us all think whether the enactment served the intended purpose or not....