Muyeen Pasha Vs ITO (Karnataka High Court)
Karnataka HC Strikes Down Reassessment for Exceeding Jurisdiction under 151A; Leaves Door Open for Revival if SC Favors Revenue
Karnataka High Court set aside reassessment proceedings initiated for AY 2016-17 on the ground that the show-cause notices were issued beyond the scope of Section 151A .
The Petitioner challenged a series of proceedings — including the order u/s 148A(d) dated 14.03.2023, notice u/s 148, assessment order u/s 147 r/w 144 & 144B, corresponding computation & demand notices, & multiple penalty notices u/s 271(1)(b), 271(1)(c), & 271F, all pertaining to AY 2016-17.
It was contended that the initiation of proceedings was without proper jurisdictional approval & outside the parameters prescribed u/s 151A, which governs the allocation of powers & approvals in faceless assessment cases.
The Court observed that the grounds raised were identical to those already adjudicated in W.P.No.28182/2024 & connected matters, decided on 28.08.2025, where similar reassessment proceedings had been quashed for being initiated without jurisdiction.
Following the same reasoning, the Court quashed the impugned notices & all consequential proceedings, holding that the Assessing Officer had acted outside the permissible limits of Section 151A. However, it granted liberty to the Revenue to revive the proceedings if the Supreme Court, in the pending matter, eventually rules in favour of the Department.
