Stories
P&H High Court Strikes Down Section 147A, Quashes JAO Notices
- •The Punjab & Haryana High Court struck down Section 147A of the Income Tax Act, 1961, which retrospectively favored Jurisdictional Assessing Officers (JAO) in reassessment proceedings over faceless assessment officers (FAO).
- •This ruling means reassessment notices can only be issued by the FAO, supporting digital intervention over JAO discretion.
- •The ITAT Mumbai Bench ruled that LLPs requiring audits under the LLP Act are entitled to the extended income tax return due date, even without a separate Section 44AB tax audit.
- •The Tribunal stated that the special law for LLPs overrules the general income tax law regarding return deadlines, preventing injustice to LLPs.
- •GSTAT remanded a refund case, emphasizing the necessity of a "speaking order" from the First Appellate Authority (FAA) to detail legal and factual reasoning for decisions, even when favoring taxpayers.
Key Questions Answered
The Punjab & Haryana High Court struck down Section 147A of the Income Tax Act, 1961, which had retrospectively favored the role of the Jurisdictional Assessing Officer in reassessment proceedings. Consequently, the court quashed notices issued by the JAO, ruling that reassessment notices can only be issued by the faceless assessment officer.
The Mumbai Bench of the Income Tax Appellate Tribunal ruled that an LLP whose accounts are audited under the LLP Act is entitled to the extended income tax return due date. Since the LLP Act is a special legislation, its extended deadline overrules the general provisions and deadlines prescribed by income tax law.
The GSTAT remanded the matter because the First Appellate Authority failed to issue a speaking order, meaning it did not document the specific legal or factual reasoning behind allowing the taxpayer's relief or reducing the tax demand. A speaking order is mandatory when rights are affected and when a verdict is appealable.
