Meta help–regarding Section 147A and 148A

Income Tax Leave a comment

Got it — you’re just studying this for the new Act, no notice involved. Here’s a clean study-note version of Section 147A inserted by Finance Act 2026:

Section 147A – “Assessing Officer for sections 148 and 148A”

1. Background / Why it came

  • Finance Act 2021 changed reassessment: Added Section 148A for pre-notice enquiry. After 148 notice, case moves to NaFAC for faceless assessment u/s 144B.
  • Litigation started: Who can issue 148/148A notice? JAO or NaFAC?
    • Bombay HC – Hexaware: Only NaFAC has jurisdiction after faceless scheme. JAO notice = invalid.
    • Other HCs – T.K.S. Builders, Telangana: JAO can issue 148/148A. Faceless starts only after notice.
  • Matter pending before Supreme Court. Govt inserted 147A to end uncertainty.

2. Amendment details

  • Inserted by: Finance Act 2026
  • Effective from: 01.04.2021, retrospectively
  • Non-obstante clause: Overrides any court ruling, Section 151A, or Notification No. 18/2022 dated 29.03.2022

3. Bare text gist

For sections 148 and 148A, “Assessing Officer” means an AO other than NaFAC or assessment units u/s 144B(3). This shall always be deemed to have been the case.

4. Effect of 147A
Before 147A After 147A
HCs split: some said only NaFAC can issue 148/148A Only JAO can issue 148/148A notices
JAO notices challenged as “without jurisdiction” JAO notices validated retrospectively from 01.04.2021
Notices by NaFAC/AU considered valid by some HCs Notices by NaFAC/AU now invalid for 148/148A purposes
5. Linked amendments

  1. Income Tax Act, 2025: Section 279(3) inserted for sections 280/281 – same exclusion of NaFAC/AU.
  2. Section 151A: Faceless scheme power remains, but 147A overrides it for 148/148A jurisdiction.

6. Govt’s rationale – Explanatory Memorandum
Scheme of Act separates “pre-assessment enquiry” vs “assessment”. 148A/148 = enquiry stage, to be done by JAO only. Faceless u/s 144B applies post-notice for actual assessment. 147A clarifies this intent.

7. Study points / Issues still open

  1. Retrospectivity: Can Parliament validate past actions via “clarification”? Likely new writs.
  2. Other grounds unaffected: 147A only fixes “who issues notice”. Limitation u/s 149, sanction u/s 151, and 148A procedure still fully challengeable.
  3. CBDT direction: Dept asked to seek adjournments in pending appeals on this issue till law settles.

Want me to map this into a timeline chart or compare old vs new reassessment flow for your notes?

Leave a Reply