The validity of reassessment notices issued by jurisdictional assessing officers (JAOs), rather than through the faceless scheme, is now before the Supreme Court. On 18 September 2026, a Bench of Justice J.B. Pardiwala and Justice K. Vinod Chandran stayed the Punjab and Haryana High Court’s 10 September 2026 ruling in Jyoti Sareen v. Union of India, which had declared Section 147A of the Income-tax Act, 1961 unconstitutional. On 12 October 2026, the Andhra Pradesh High Court reached the same conclusion in Bala Sreenivas Rao Somisetty v. ITO.
What was decided
Section 147A was inserted by the Finance Act, 2026 with retrospective effect from 1 April 2021. It provides that, for Sections 148 and 148A, the “Assessing Officer” is an officer other than the National Faceless Assessment Centre or an assessment unit, notwithstanding any judgment, Section 151A or the scheme framed under it. Earlier, on 10 April 2026, the Supreme Court in ITO v. Tej Partap Singh had remitted the JAO-versus-faceless dispute to the High Courts without deciding the validity of the new provision.
The Punjab and Haryana High Court held that Parliament had not amended Section 151A or the faceless scheme notified on 29 March 2022, so the defect identified in earlier rulings was not cured, and quashed the Section 148 notices before it. The Andhra Pradesh High Court adopted similar reasoning and also noted that the 1961 Act stood repealed when the Income-tax Act, 2025 came into force on 1 April 2026. The Supreme Court’s stay, in Union of India v. Bharat Industrial Enterprises Pvt. Ltd., is conditional: assessment and reassessment proceedings are not to proceed further until final disposal. The appeal is listed for final hearing on 3 December 2026.
Why it matters
A large number of reassessment notices for past years were issued by JAOs. Taxpayers in that position face an unusual phase: the notice is neither quashed nor freely enforceable, and the outcome will turn on the Supreme Court’s final view. The Andhra Pradesh ruling is a separate judgment, and its practical reach depends on further appeals.
For taxpayers in Uttar Pradesh and Delhi NCR, the Allahabad and Delhi High Courts will be guided by whatever the Supreme Court finally decides, so procedural objections should be preserved now rather than raised later.
Practical points
- Check whether your Section 148A or 148 notice was issued by a JAO or through the faceless unit, and keep the DIN and email trail.
- If a writ is pending, consider whether the challenge to Section 147A has been pleaded, since the April 2026 remand allowed amendment of petitions.
- Continue to file replies on merits within time; a jurisdictional objection does not replace a substantive response.
- Track the 3 December 2026 hearing, as the result may affect pending reassessments across the country.
Sources: LiveLaw Biz, 18 Sep 2026; Free Press Journal, 13 Oct 2026; KPMG Tax Flash, 30 Apr 2026.
For a confidential discussion on reassessment notices and faceless assessment, see Income-tax Search & Seizure Lawyer.
General legal information only; not legal advice or solicitation.
