Faceless reassessment notices and JAO competence: Supreme Court remits matters after retrospective tax amendments.

Reassessment notices issued under the faceless reassessment framework were challenged on the ground that the Jurisdictional Assessing Officer lacked competence, and several High Courts had quashed them. During the appeals, Parliament introduced clarificatory amendments with retrospective effect, altering the statutory basis of the dispute. In view of that intervening change, the Supreme Court set aside the impugned judgments on a limited ground and remitted the matters to the respective High Courts for fresh consideration, permitting the assessees to amend their writ petitions to challenge the new provision and the Revenue to file additional submissions.

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Issues: Whether the impugned High Court judgments quashing reassessment notices for want of JAO competence were liable to be set aside and the matters remitted for fresh consideration in light of the subsequent amendments.

Analysis: The batch arose from reassessment proceedings under the Income-tax Act, 1961, where several High Courts had invalidated notices issued under the faceless reassessment framework on the ground that the Jurisdictional Assessing Officer lacked competence. During the pendency of the appeals, Parliament introduced clarificatory amendments with retrospective effect. In view of the altered statutory foundation and the scope of challenge to the amending provisions, the Court declined to decide the merits of the competing submissions at that stage and considered it appropriate to relegate the assessees to the jurisdictional High Courts. The assessees were permitted to amend their writ petitions to challenge the new provision, and the Revenue was permitted to file additional submissions before the High Courts.

Conclusion: The impugned judgments were set aside on the limited ground of the intervening amendments, and the matters were remitted to the respective High Courts for fresh consideration.

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