The Section 147A Dispute: Two High Courts Strike It Down, Supreme Court Grants Stay
Income tax cases reopened for reassessment after 1 April 2021 now face a major legal question over Section 147A . Two High Courts have declared it unconstitutional, and the Supreme Court will have the final word. How the dispute began A new reassessment regime (Section 148A) began on 1 April 2021. On 29 March 2022, the e-Assessment of Income Escaping Assessment Scheme, 2022 was notified under Section 151A, under which notices were to be issued in a faceless manner. However, all notices under Sections 148A and 148 were issued by Jurisdictional Assessing Officers (JAOs). Several High Courts quashed these notices, while some upheld them. What Section 147A says Section 147A was inserted by the Finance Act, 2026 (Act No. 4 of 2026) with effect from 1 April 2021. It says that, notwithstanding any judgment, order or decree of any court, or anything in Section 151A or a scheme under it, the Assessing Officer for Sections 148 and 148A means, and shall always be deemed to have meant, an off...