Please find our Newsflash on the recent ruling of the Hon’ble Punjab & Haryana High Court in Jyoti Sareen v. Union of India, concerning the ongoing controversy over the jurisdiction of the Jurisdictional Assessing Officer (JAO) and Faceless Assessing Officer (FAO) in the issuance of notices u/s 148 for reassessment proceedings.
The key highlights of the ruling are as follows:
• The High Court struck down Section 147A as unconstitutional, observing that the retrospective amendment did not address the basis of the earlier judicial decisions on the JAO-FAO issue. A validating law must remove the defect / basis of the earlier judgment, not merely declare that a court decision will not apply.
• The Court held that notices under Section 148 are required to be issued through randomised automated allocation and in a faceless manner, in accordance with Section 151A read with the scheme dated 29 March 2022.
• Accordingly, the reassessment notices u/s 148 issued by the jurisdictional AOs were set aside, as they were not issued through the prescribed randomised allocation and faceless mechanism.
• The Court also rejected the Revenue’s contention regarding concurrent jurisdiction of the jurisdictional and faceless AOs, holding that the mechanism prescribed under Section 151A and the scheme framed thereunder is required to be followed.
The ruling is an important development for taxpayers facing reassessment proceedings, particularly where notices under Section 148 have been issued by jurisdictional AOs. However, the JAO - FAO controversy continues to evolve, with the issue presently under consideration before other High Courts as well.
We hope you find the same useful.
Click here to download-RSM India Newsflash - Punjab & Haryana HC strikes down retrospective Section 147A
