ITO Vs Muyeen Pasha (Karnataka High Court)
Karnataka HC Follows Supreme Court: Reassessment Challenge Remanded After Retrospective Insertion of Section 147A
The Karnataka High Court allowed the Revenue’s writ appeal and set aside the Single Judge’s order quashing the reassessment notice, holding that the matter required fresh consideration in light of the Supreme Court’s subsequent ruling on the retrospective insertion of Section 147A into the Income-tax Act. The Court noted that the Supreme Court had observed that Parliament had retrospectively clarified, with effect from 1 April 2021, 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 had quashed the notice on the ground that the Jurisdictional Assessing Officer (JAO) lacked authority to initiate reassessment proceedings, the basis of that decision stood altered by the legislative amendment.
Following the Supreme Court’s directions, the High Court refrained from examining the merits of the reassessment proceedings and remitted the matter to the Single Judge. It granted liberty to the assessee to amend the writ petition and challenge the constitutional validity, retrospectivity, scope and applicability of Section 147A, while leaving all other legal and factual contentions open. The Revenue was also permitted to file additional affidavits and written submissions. The Court further directed that the interim protection against reassessment proceedings, as granted by the Supreme Court, would continue to operate and requested the Single Judge to decide the matter within the timeline indicated by the Apex Court.
FULL TEXT OF THE JUDGMENT/ORDER OF KARNATAKA HIGH COURT
The above writ appeal is filed questioning the learned Single Judge’s order dated 08.09.2025 in W.P.No.15780/2024, whereunder the writ petition is allowed, quashing the notice dated 14.03.2023.
