सुप्रीम कोर्ट ने धारा 147A को हटाने वाले पीएचए हाईकोर्ट के फैसले को स्थगित किया

The Supreme Court on September 18 stayed the Punjab and Haryana High Court judgment declaring Section 147A of the Income Tax Act unconstitutional, while directing that the related assessment proceedings should not proceed until the Centre’s challenge is finally decided.

A bench comprising Justice Alok Aradhe and Justice K. Vinod Chandran ordered that the High Court judgment would remain stayed and listed the matter for final hearing on December 3, 2026.

The Centre had approached the Supreme Court challenging the High Court’s September 10 judgment, which struck down Section 147A in a batch of nearly 700 petitions.

The matter was urgently mentioned before Chief Justice of India Surya Kant on September 16 by Additional Solicitor General N. Venkataraman, following which it was listed for hearing on September 18.

Section 147A was inserted retrospectively with effect from April 1, 2021, to clarify the meaning of “Assessing Officer” under Sections 148 and 148A of the Income Tax Act. The amendment effectively provided that reassessment proceedings could be undertaken by an Assessing Officer other than the National Faceless Assessment Centre.

The provision emerged against the backdrop of litigation over the powers of Jurisdictional Assessing Officers (JAOs) under the faceless assessment regime. Several High Courts had held that reassessment proceedings initiated by JAOs, without following the prescribed faceless procedure, were invalid, while other High Courts took a different view.

The Punjab and Haryana High Court subsequently held that Parliament could not retrospectively validate a legal position that had already been found contrary to law by constitutional courts without removing the underlying defect.

The High Court also held that Section 147A sought to circumvent judicial findings and declared the provision unconstitutional. It consequently set aside reassessment notices issued by JAOs in the cases before it.

The Supreme Court’s stay means that the High Court’s judgment will remain in abeyance pending the outcome of the Centre’s challenge. The apex court will examine the validity and effect of Section 147A at the final hearing in December.

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