Shyam Sundar Saw Vs Union of India (Jharkhand High Court)
The Jharkhand High Court considered a petition challenging proceedings initiated under Sections 148 and 148A of the Income Tax Act, including the show-cause notice dated 24 March 2025, order dated 24 June 2025, and notice dated 24 June 2025. The petitioner contended that, after the introduction of the e-Assessment Faceless Scheme under Section 151A through notification dated 29 March 2022, such proceedings conducted otherwise were without jurisdiction. The petition had remained pending because certain High Courts had accepted similar contentions and the issue was pending before the Supreme Court.
During pendency of the matter, Clause 9 of the Finance Act, 2026 inserted Section 147A into the Income Tax Act with retrospective effect from 1 April 2021. Section 147A clarified that, notwithstanding any judgment, order, decree, Section 151A, or any scheme framed thereunder, the “Assessing Officer” for purposes of Sections 148 and 148A would mean an Assessing Officer other than the National Faceless Assessment Centre or any assessment unit referred to in Section 144B(3).
The High Court held that, because of the retrospective insertion of Section 147A, the challenge to the reassessment proceedings and notices on the ground of lack of jurisdiction would no longer survive. Accordingly, the Court disposed of the petition without interfering with the impugned notices and proceedings. However, liberty was granted to the petitioner to raise all permissible objections during reassessment proceedings and also to challenge any adverse reassessment order or the validity and retrospectivity of Section 147A in accordance with law. The interim order, if any, was vacated and no costs were awarded.
