ITO Vs Lubna Shah (Karnataka High Court)
Karnataka HC Remands JAO Reassessment Cases in View of Supreme Court’s Section 147A Ruling; Assessees Permitted to Challenge Retrospective Amendment
The Karnataka High Court set aside the Single Judge’s order quashing reassessment notices issued by the Jurisdictional Assessing Officer (JAO) and remanded the matter for fresh consideration in light of the Supreme Court’s subsequent decision concerning the newly inserted Section 147A of the Income-tax Act. The Court noted that the Supreme Court had observed that Parliament, by inserting Section 147A with retrospective effect from 1 April 2021, intended to clarify that, for the purposes of Sections 148 and 148A, the expression “Assessing Officer” refers to an officer other than the National Faceless Assessment Centre (NFAC) or its assessment units. Since the Single Judge’s decision had proceeded on the basis that the JAO lacked jurisdiction to initiate reassessment proceedings, the very foundation of that judgment stood affected by the retrospective amendment.
Following the Supreme Court’s directions, the High Court refrained from examining the merits of the reassessment notices and restored the writ petition to the Single Judge. It granted the assessee liberty to challenge the constitutional validity, scope and retrospective operation of Section 147A, as well as any connected or consequential provisions, while preserving all other contentions of both parties. The Court also directed the Revenue to file additional pleadings within the time prescribed by the Supreme Court and clarified that the interim stay of reassessment proceedings granted by the Supreme Court would continue to operate until the writ petition is decided.
FULL TEXT OF THE JUDGMENT/ORDER OF KARNATAKA HIGH COURT
The above writ appeal is filed questioning the learned Single Judge’s order dated 24.09.2025 in W.P.No.19345/2024, where under the writ petition is allowed, quashing the notices dated 30.03.2024 and 16.04.2024.
