सुप्रीम कोर्ट ने आयकर धारा 147A को रद्द करने वाले पं.हं. हाई कोर्ट फैसले पर लगाया ठहराव

SC stays P&H High Court ruling striking down Section 147A of Income Tax Act

The Supreme Court said assessment proceedings covered by the dispute will not proceed until final disposal of the Centre's plea, with the matter listed for hearing on December 3, 2026

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The Supreme Court on Friday stayed a recent Punjab and Haryana High Court judgment that had declared Section 147A of the Income Tax Act unconstitutional, LiveLaw reported.

A Bench comprising Justices Alok Aradhe and K Vinod Chandran passed the order while hearing a special leave petition (SLP) filed by the Union government challenging the High Court ruling. The stay will remain in force until the Supreme Court finally decides the matter.

The court directed that the assessment proceedings in question should not proceed further during this period. It also scheduled the matter for final hearing on December 3, 2026.

The order stated: “The impugned judgment and order passed by the High Court shall remain stayed on the condition that the assessment proceedings shall not proceed further till the final disposal of the main matter.”

The case was listed for urgent hearing after Additional Solicitor General N Venkataraman mentioned it before the Chief Justice of India two days ago.

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Dispute over faceless assessment

The case arises from a dispute over the powers of the jurisdictional Assessing Officer (JAO) under the faceless assessment regime.

The issue was whether a JAO could independently issue reassessment notices under Section 148 and pass orders under Section 148A of the Income Tax Act, or whether such actions had to be undertaken through the prescribed faceless assessment mechanism involving the National Faceless Assessment Centre (NFAC).

Several High Courts, including the Punjab and Haryana High Court, had held that reassessment proceedings initiated by JAOs without following the faceless procedure were invalid. However, courts in some other jurisdictions took a different view.

Parliament introduced Section 147A retrospectively from April 1, 2021. The provision sought to clarify that references to an “Assessing Officer” in Sections 148 and 148A would mean an Assessing Officer other than the NFAC.

The amendment effectively sought to establish that jurisdictional officers could undertake reassessment proceedings despite the faceless assessment framework.

Why P&H High Court struck down provision

The Punjab and Haryana High Court had held that Parliament could not retrospectively alter the legal position in a manner that effectively nullified findings already reached by constitutional courts.

The High Court had reasoned that the amendment did not merely change the law prospectively but sought to validate, with retrospective effect, reassessment proceedings that had been found legally defective because they were initiated outside the prescribed faceless mechanism.

The High Court consequently held Section 147A unconstitutional.

The Union government challenged that ruling before the Supreme Court, leading to Friday’s interim stay.

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First Published: Sep 18 2026 | 1:44 PM IST

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