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TMI Blog2025 (4) TMI 1569X X X X Extracts X X X X X X X X Extracts X X X X ..... te. (In Civil Writ Jurisdiction Case No. 2821 of 2022) For the Petitioner/s : Mr. Ajay Kumar Rastogi, Sr. Advocate Ms. Smriti Singh, Advocate For the Respondent/s : Mrs. Archana Sinha @ Archana Shahi, Sr. Advocate, Income Tax Mr. Alok Kumar, Advocate. (In Civil Writ Jurisdiction Case No. 2943 of 2022) For the Petitioner/s : Mr. Ajay Kumar Rastogi, Sr. Advocate Ms. Smriti Singh, Advocate. For the Respondent/s : Mrs. Archana Sinha @ Archana Shahi, Sr. Advocate, Income Tax Mr. Alok Kumar, Advocate. (In Civil Writ Jurisdiction Case No. 3512 of 2022) For the Petitioner/s : Mr. Ajay Kumar Rastogi, Sr. Advocate Ms. Smriti Singh, Advocate. For the Respondent/s : Mrs. Archana Sinha @ Archana Shahi, Sr. Advocate, Income Tax Mr. Alok Kumar, Advocate. (In Civil Writ Jurisdiction Case No. 3900 of 2022) For the Petitioner/s : Mr. Ajay Kumar Rastogi, Sr. Advocate Ms. Smriti Singh, Advocate For the Respondent/s : Mrs. Archana Sinha @ Archana Shahi, Sr. Advocate, Income Tax Mr. Alok Kumar, Advocate. (PER: HONOURABLE MR. JUSTICE P. B. BAJANTHRI) Pursuant to earlier orders, Ms. Neha Singh, Deputy Commissioner of Income Tax is present in the Court. 2. In the instant writ petitions, peti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n pursuance of the said Notice by National Faceless Assessment Centre, Delhi ((Respondent No. 3) herein and also referred to as the "NFAC" hereinafter) whereby the petitioner's objection on the issue of assumption of jurisdiction has been rejected by a non-speaking and cryptic order passed only as a formal observance of the procedure laid down by the Hon'ble Supreme Court in the case of GKN Driveshaft (India) vs. ITO and Others reported I (2003) 259 ITR 19. iii) For issuance of an appropriate writ quashing the notice under section 143 (2) dated 23.11.2021 by which the Respondent No. 2 has assumed jurisdiction to assess / reassess the alleged escaped income. iv) For issuance of an appropriate writ quashing the notice under section 142 (1) dated 14.12.2021 by which the Respondent No. 3 has assumed jurisdiction to assess / reassess the alleged escaped income. v) For issuance of any other writ, order or direction which your Lordships may deem fit and proper in the facts and circumstances of the case." In CWJC No. 2943 of 2022 : "i) For issuance of a writ of certiorari or any other appropriate writ quashing the unsigned notice under Section 148 of the Income Tax Act, 1961 ("th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the petitioner in disclosing fully and truly all material facts necessary for assessment and on mere change opinion. ii) For issuance of an appropriate writ quashing the notice under section 142 (1) dated 08.01.2022 by which the National Faceless Assessment Centre, Delhi [(Respondent No. 3) herein and also referred to as " NFAC" hereinafter)] has assumed jurisdiction to assess / reassess the alleged escaped income by requisitioning certain details which were requisitioned in course of original assessment culminated vide order under Section 143 (3) dated 30.07.2016. iii) For issuance of an appropriate writ quashing the notice cum clarification letter dated 25.01.2022 passed by NFAC whereby the petitioner has been required to submit documents as requisitioned vide notice u/s 142 (1). iv) For issuance of any other writ, order or direction which your Lordships may deem fit and proper in the facts and circumstances of the case." In CWJC No. 3900 of 2022 : "i) For issuance of a writ of certiorari or any other appropriate writ quashing the notice under Section 148 of the Income Tax Act, 1961 ("the Act") dated 31.03.2021 (Annexure - 1), for assessment year 2015-16 issued by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s been to record reasons, even in administrative decisions, if such decisions affect anyone prejudicially. (b) A quasi-judicial authority must record reasons in support of its conclusions. (c) Insistence on recording of reasons is meant to serve the wider principle of justice that justice must not only be done it must also appear to be done as well. (d) Recording of reasons also operates as a valid restraint on any possible arbitrary exercise of judicial and quasi-judicial or even administrative power. (e) Reasons reassure that discretion has been exercised by the decision-maker on relevant grounds and by disregarding extraneous considerations. (f) Reasons have virtually become as indispensable a component of a decision-making process as observing principles of natural justice by judicial, quasi-judicial and even by administrative bodies. (g) Reasons facilitate the process of judicial review by superior courts. (h) The ongoing judicial trend in all countries committed to rule of law and constitutional governance is in favour of reasoned decisions based on relevant facts. This is virtually the lifeblood of judicial decision-making justifying the principle that reason i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assistant Commissioner of Income Tax & Another, reported in (2023) 16 SCC 677. 4. List this matter for further hearing on 22.04.2025." 4. It is necessary to reproduce impugned show cause notice (Annexure-1) which reads as under : "GOVERNMENT OF INDIA MINISTRY OF FINANCE INCOME TAX DEPARTMENT OFFICE OF THE ASSISTANT COMMISSIONER OF INCOME TAX DC/AC CIRCLE 4, PATNA To, Kishore Kumar Singh Sandalpur Sandalpur, Biscoman Colony Gulzarbagh 800007, Bihar India PAN: AGPPS2858F AY: 2016-17 Dated : 31/03/2021 DIN & Notice No : ITBA/AST/S/148/2020-21/1032077395(1) Notice Under Section 148 of the Income Tax Act, 1961 Sir/Madam/ M/s, Whereas I have reasons to believe that your Income chargeable to Tax for the Assessment Year 2016-17 has escaped Assessment within the meaning of section 147 of the Income Tax Act, 1961. I, therefore, propose to assess/re-assess the income/loss for the said Assessment Year and I hereby require you to deliver to me within 30 days from the service of this notice, a return in the prescribed form for the said Assessment Year. This notice is being issued after obtaining the necessary satisfaction of the RANGE 4, PATNA. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... present lis is whether official respondent while issuing notice under Section 148 of the Income Tax Act, 1961 require to furnish reasons or not? The learned counsel for the petitioners submitted that reasons are mandatory requirement to meet Article 14 of the Constitution of India otherwise petitioners are not in a position to submit their explanation in effective manner. It is also submitted that respondents while issuing notice under Section 148 are exercising quasi judicial functions, therefore, any quasi judicial action taken by the official respondent, it must be supported by reasons otherwise aggrieved person has no opportunity of submission of effective reply to the notice. 10. Learned counsel for the respondents relied on the cited decisions supra to contend that no reasons are required to be furnished along with the notice under Section 148, the same cannot be appreciated for the reasons that assuming that Section 148 does not prescribe notice must be supported by reasons, it is a quasi judicial function of the authority and it has repercussion insofar as in submitting effective reply or material to the notice issued under Section 148. In other words, reasonable opportuni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave it open to the petitioner to file return of income under protest within one month, without prejudice to the rights and contentions, and ask for the reasons for issue of notice under Section 147 of the Income Tax Act, 1961. The procedure as prescribed in GKN Driveshafts (India) Ltd. vs. CIT, would be followed by the assessing officer. In case of an adverse order, it will be open to the petitioner to challenge the same. 2. All contentions are left open. 3. In view of the aforesaid, the special leave petition is dismissed. Pending application(s), if any, stand disposed of." Reading of the aforementioned decision, it is crystal clear that notice must be supported by reasons. 13. In the case of Union of India and Ors. vs. Rajeev Bansal in Civil Appeal No. 8629 of 2024 (2024 INSC 754) decided on 03.10.2024 in Paragraph Nos. 93 and 102, the Hon'ble Supreme Court held as under : 93. In Union of India v. Ashish Agarwal [(2022) 444 ITR 1 (SC); (2023) 1 SCC 617.], this court was aware of the fact that it could not have used its jurisdiction under article 142 to affect the vested rights of the assessees by deeming section 148 notices under the old regime as section 148 notices unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... recorded against him in the report before the disciplinary authority took its own decision with regard to the guilt or otherwise of the employee by taking into consideration the said report. The Court held that whenever the enquiry officer is other than the disciplinary authority and the report of the enquiry officer holds the employee guilty of all or any of the charges with proposal for any punishment or not, the delinquent employee is entitled to a copy of the report to enable him to make a representation to the disciplinary authority against it and the non-furnishing of the report amounts to a violation of the rules of natural justice. However, after taking this view, the Court directed that the law laid down there shall have prospective application and the punishment which is already imposed shall not be open to challenge on that ground. Unfortunately, the Court by mistake allowed all the appeals which were before it and thus set aside the disciplinary action in every case, by failing to notice that the actions in those cases were prior to the said decision. This anomaly was noticed at a later stage but before the final order could be reviewed and rectified, the present refer ..... X X X X Extracts X X X X X X X X Extracts X X X X
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