Karnataka HC Remands Reassessment Case as SC Directed Fresh Review After Section 147A Amendment

DCIT Vs Motorola Mobility India Pvt. Ltd. (Karnataka High Court)

The Karnataka High Court considered a writ appeal filed by the Revenue against an order of a Single Judge dated 05.12.2025, which had allowed the assessee’s writ petition challenging notices issued under Sections 148/148A of the Income Tax Act, 1961 and/or the reassessment order passed under Section 147 of the Act. The appeal formed part of a batch of writ appeals involving similar issues.

During the hearing, both parties brought to the Court’s notice the judgment of the Supreme Court in Civil Appeal No. 4716/2026 dated 10.04.2026. The Supreme Court had considered the insertion of Section 147A into the Income Tax Act through Act No. 4 of 2026, which retrospectively clarified, with effect from 01.04.2021, that for the purposes of Sections 148 and 148A, the term “Assessing Officer” means an officer other than the National Faceless Assessment Centre (NFAC) or any assessment unit referred to in Section 144B(3). The Supreme Court recorded rival submissions regarding the retrospective amendment, including the Revenue’s contention that the amendment was clarificatory and the assessees’ contention that it imposed retrospective consequences. However, the Supreme Court refrained from expressing any opinion on the merits, validity, scope, effect, retrospectivity, or applicability of the amended provisions.