Name of Concerned AO Can’t Be Reflected in Notice Issued u/s 148 in Faceless Manner | HC

Case Details: Ram Narayan Sah vs. The Union Of India - [2024] 163 taxmann.com 478 (Gauhati)

Judiciary and Counsel Details

• Soumitra Saikia, J.
• O.P. Bhati for the Petitioner. 
• DY.S.G.I. for the Respondent.

Facts of the Case

The petitioner filed the instant writ petition against the notice issued by the Assessing Officer (AO) for reopening the assessment under Section 147 of the Income Tax Act. The petitioner contended that the notice was issued with the name of the AO. This was contrary to the provisions of Section 151A and the schemes framed thereunder, whereby the Income Tax Authority was required to undertake these proceedings in a ‘faceless’ manner.

High Court Held

The High Court held that the scheme’s scope under Section 151A is for assessment, re-assessment, and re-computation under Section 158 and issuance of notices under Section 148. The same shall be by a process through automated allocation in accordance with the risk management strategy formulated as referred to under Section 148 for issuance of the notice and in a faceless manner and to the extent provided under Section 144B reference to make the assessment, re-assessment of total income or loss of the assessee.

The statute, in order to obviate prejudice and bias, has resorted to issuing notices through automated allocation via the risk management strategy. The notices are required to be issued in an automated manner without any interface between the department and the assessee. There is no fundamental right or legal right available to an assessee to demand that the notices, though automated digital allocation, should be issued. If the department issues fresh notices, the petitioner shall also be granted liberty to file their appropriate reply under section 148.

Accordingly, the department is required to follow the procedure prescribed for the scheme. Accordingly, the department will withdraw the notices and thereafter issue fresh notices if permissible under the law as per the scheme read in section 151A.

List of Cases Reviewed

• W.P.(C) No. 3535/2021 & C.M. Appl. No. 10693/2021 & Ors (Para 9) followed.