Retrospective section 147A clarifies reassessment jurisdiction, leading to remand for fresh merits adjudication after hearing both sides.

Retrospective insertion of section 147A, clarifying the meaning of "Assessing Officer" for sections 148 and 148A, affected an order that had annulled reassessment only on the ground that the section 148 notice lacked jurisdiction. Because the first appellate authority had not examined the merits of the addition, the Tribunal found it appropriate to set aside that order and remit the matter to the CIT(A) for fresh adjudication after hearing both sides and, if necessary, compliance with rule 46A. The jurisdictional annulment was therefore not sustained as a final determination, and the substantive issues remained open.

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Issues: Whether, in view of the retrospective insertion of section 147A of the Income-tax Act, 1961, the order annulling the reassessment on the ground that notice under section 148 was without jurisdiction should be set aside and the matter remanded for fresh adjudication on merits.

Analysis: The Tribunal noted that section 147A had been inserted with retrospective effect from 01.04.2021 and clarifies the meaning of "Assessing Officer" for the purposes of sections 148 and 148A. The order under appeal had allowed the assessee's appeal only on the jurisdictional issue and had not examined the merits of the addition. In that situation, and in the interest of justice, the Tribunal found it appropriate to restore the matter to the CIT(A) for a fresh decision after granting opportunity of hearing to both sides and, if required, compliance with rule 46A of the Income-tax Rules, 1962.

Conclusion: The jurisdiction-based annulment was not sustained as a final determination, and the matter was remanded to the CIT(A) for reconsideration on merits.

Final Conclusion: The appeal was disposed of by setting aside the first appellate order and restoring the matter for fresh adjudication, with the Revenue obtaining a partial procedural success and the substantive issues remaining open.

Ratio Decidendi: Where a jurisdictional annulment rests only on the legal validity of notice and the governing law is retrospectively amended, the appellate order may be set aside and the matter remanded for decision on merits after hearing the parties.

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