Triveni Buildzone Private Limited V. Union Of India And 3 Others

WTAX/760/2023

AI Insights

The case involves Triveni Buildzone Private Limited challenging a rectification notice issued by the Income Tax Officer under Section 154 of the Income Tax Act. The petitioner argued that the notice was issued without jurisdiction, citing amendments under Section 157A which pertain to faceless assessment proceedings. The petitioner contended that only the National Faceless Assessment Center, which conducted the original assessment, had the authority to issue such notices. The respondent countered that Section 157A is an enabling provision that allows the Central Government to specify the authority for rectification notices, and unless a specific scheme states otherwise, the Income Tax Officer retains jurisdiction. The court, after considering the arguments and the relevant sections of the Income Tax Act, decided not to accept the petitioner's contention due to the absence of a specific scheme under Section 157A that designates a different authority for issuing rectification notices.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 800355 (HC-ALLAHABAD)
• Appeal Type: Others
• Pronouncement Date: 19-07-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: A S G I; GAURAV MAHAJAN; KRISHNA AGARAWAL; KRISHNA JI SHUKLA
• Assessee Lawyers: ABHINAV MEHROTRA; SATYA MEHROTRA
• Keywords: Faceless assessment; Income Tax Officer; Jurisdiction; Mistake apparent from record; Rectification notice
• Section: 154; 116; 157A

Judgement Text

"Neutral Citation No. - 2023:AHC:143271-DB Court No. - 46 Case :- WRIT TAX No. - 760 of 2023 Petitioner :- Triveni Buildzone Private Limited Respondent :- Union Of India And 3 Others Counsel for Petitioner :- Abhinav Mehrotra,Satya Vrata Mehrotra Counsel for Respondent :- A.S.G.I.,Gaurav Mahajan,Krishna Agarawal,Krishna Ji Shukla Hon'ble Ashwani Kumar Mishra,J. Hon'ble Syed Aftab Husain Rizvi,J. This petition is directed against a rectification notice issued under Section 154 of the Income Tax Act, dated 16.05.2023, primarily on the ground that the such notice issued by the Income Tax Officer is without jurisdiction. Learned counsel for the petitioner places reliance upon Section 154 of the Act which contemplates proceedings for rectification. The authority competent to issue notices thereunder is the authority specified under Section 116 of the Act which includes the Income Tax Office. Learned counsel for the petitioner, however, submits that the Income Tax Officer is not the competent authority to issue notices, inasmuch as the Act has been amended so as to include Section 157A which contemplates framing of a scheme by the Central Government for the purposes of rectification of any mistake apparent from record in a case of a faceless assessment proceedings. It is sought to be urged that the Income Tax Officer is not the competent authority under Section 157A for issuing the notice for rectification. He further submits that the authority, who passes the order has to be specified by way of a scheme framed under Section 157A. It is also urged that Section 154 confers jurisdiction only upon the authority, who has passed the order of assessment to initiate rectification proceedings and since the assessment has been made by the National Faceless Assessment Center, therefore, the jurisdiction to issue notice for rectification also lies with the Center only. Sri Krishna Agarawal, appearing for the revenue opposes the argument of petitioner on the ground that Section 157A is an enabling provision which permits the Central Government to make a scheme, by notification in the official gazette, for the purpose of rectification of any mistake apparent from record under Section 154 of the Act. It is stated that unless the petitioner can demonstrate with reference to such scheme framed that the specified authority to issue rectification notice is someone else, the jurisdiction otherwise with the assessment authority would remain. He further submits that Section 154 otherwise specifies the authority for issuing rectification proceedings is the authority under Section 116 which includes the Income Tax Officer. We have heard learned counsel for the parties and have perused the materials on record. It is not in issue that assessment order in this case has been passed by the National Faceless Assessment Center. The notice for rectification has now been issued by the Income Tax Officer, who is the competent authority otherwise for passing the order of assessment. Section 157A refers to rectification where the assessment is done by the National Faceless Assessment Center. Section 157A is relevant for the present purposes and is reproduced hereinafter:- \"157A. (1) The Central Government may make a scheme, by notification in the Official Gazette, for the purposes of rectification of any mistake apparent from record under section 154 or other amendments under section 155 or issue of notice of demand under section 156, or intimation of loss under section 157, so as to impart greater efficiency, transparency and accountability by- (a) eliminating the interface between the income-tax authority and the assessee or any other person to the extent technologically feasible; (b) optimizing utilization of the resources through economies of scale and functional specialization; (c) introducing a team-based rectification of mistakes, amendment of orders, issuance of notice of demand or intimation of loss, with dynamic jurisdiction. (2) The Central Government may, for the purpose of giving effect to the scheme made under sub-section (1), by notification in the Official Gazette, direct that any of the provisions of this Act shall not apply or shall apply with such exceptions, modifications and adaptations as may be specified in the notification: Provided that no direction shall be issued after the 31st day of March, 2022. (3) Every notification issued under sub-section (1) and sub-section (2) shall, as soon as may be after the notification is issued, be laid before each House of Parliament.] \" Section 157A is clearly an enabling provision which permits the Central Government to make a scheme, by notification in the official gazette, for the purposes of rectification of any mistake apparent from record under Section 154 of the Act. However, our attention has not been invited to any specific scheme framed by the Central Government under Section 157A which specifies any other authority as being the competent authority to initiate rectification proceedings. In the absence of any such scheme having been produced before the Court, we are not inclined to accept the petitioner's contention that the jurisdictional authority, i.e. the Income Tax Officer ceases to have jurisdiction to issue the rectification notice. Even otherwise, we are of the view that such issues are open to be raised by the petitioner while submitting reply to the rectification notice and it goes without saying that all such issues raised would be dealt with by the authority concerned at the first instance, without prejudice to any observation made in the present writ petition. It is, therefore, provided that in the event any challenge is laid to the notice for rectification by the petitioner on the ground of jurisdiction, the same shall be dealt with, as per law. Leaving it open for the petitioner to respond to notice and raise available arguments in that regard, this petition is consigned to records. Order Date :- 19.7.2023 RA Digitally signed by :- RAZIQ ALI High Court of Judicature at Allahabad "