ACIT Vs Pankajbhai Jaysukhlal Shah (Supreme Court of India)
The Supreme Court, in ACIT v. Pankajbhai Jaysukhlal Shah, condoned the delay and dismissed the Revenue’s Special Leave Petition against the Gujarat High Court’s decision quashing reassessment proceedings initiated under Section 148 of the Income-tax Act, 1961. However, the Supreme Court expressly left the question of law open. Its brief order did not provide independent reasoning on the jurisdictional issue or affirm the High Court’s legal interpretation as a binding declaration of law.
The underlying dispute concerned Assessment Year 2011–12. The assessee challenged a reassessment notice dated 29 March 2018 issued under Section 148 by the Income Tax Officer, Ward 2(2), Jamnagar, although the reasons for reopening had been recorded by the Deputy Commissioner of Income Tax, Circle 2, Jamnagar. The Revenue argued that the discrepancy arose because the assessee’s PAN could not be migrated to the jurisdictional officer before the limitation deadline. It maintained that this was a procedural defect curable under Section 292B and that the assessee had already participated in reassessment proceedings.
The Gujarat High Court held that the officer recording reasons under Section 148(2) and the officer issuing notice under Section 148(1) must be the same jurisdictional Assessing Officer. Relying on Hynoup Food & Oil Industries Ltd. v. ACIT, 307 ITR 115 (Gujarat), the High Court concluded that issuance of a jurisdictional notice by an officer lacking authority was an inherent defect that Section 292B could not cure. Consequently, it quashed the notice dated 29 March 2018 and all consequential proceedings, including the assessment order dated 28 December 2018. The Supreme Court’s subsequent dismissal of the SLP left that relief undisturbed in the particular case, while keeping the legal question open.
Read HC Judgment in this case:- Pankajbhai Jaysukhlal Shah C/o. Meena Agency Ltd. Vs ACIT (Gujarat High Court); Special Civil Application No. 230 of 2019; 09/04/2019
FULL TEXT OF THE SUPREME COURT JUDGMENT/ORDER
Delay condoned.
The special leave petition is dismissed. However, the question of law is left open.
Pending application stands disposed of.
