Bombay HC Revives Appeal against Income Tax Reassessment Post-SC Remand in Section 151A Cases [Read Order]
The Court directed the Commissioner (Appeals) to adjudicate the matter freshly, providing the assessee is given a fair opportunity to be heard
![Bombay HC Revives Appeal against Income Tax Reassessment Post-SC Remand in Section 151A Cases [Read Order]](https://images.taxscan.in/h-upload/2026/06/17/2140613-bombay-hc-income-tax-reassessment-post-sc-remand-section-151a-taxscan.webp "Bombay HC Revives Appeal against Income Tax Reassessment Post-SC Remand in Section 151A Cases [Read Order]")
The Bombay High Court has directed the revival of an appeal filed by a against an income tax reassessment order after the Supreme Court remanded a batch of cases involving the Section 151A of the Income Tax Act, 1961. Justice B.P. Colabawalla and Justice Firdosh P. Pooniwalla also protected the assessee from coercive recovery action during the pendency of the...
The Bombay High Court has directed the revival of an appeal filed by a against an income tax reassessment order after the Supreme Court remanded a batch of cases involving the Section 151A of the Income Tax Act, 1961.
Justice B.P. Colabawalla and Justice Firdosh P. Pooniwalla also protected the assessee from coercive recovery action during the pendency of the appellate proceedings.
Deepbharti Welfare Society, assessee filed a writ petition challenging a Section 148 reassessment notice and a subsequent order for AY 2015-16. The trust argued the jurisdictional Assessing Officer lacked authority, asserting the notice should have been issued through the Faceless Assessment mechanism under Section 151A.
Previously, on August 26, 2024, the Bombay High Court had quashed the reassessment notice and consequential proceedings. The Court relied on its Hexaware Technologies Ltd. ruling, which mandated compliance with Section 151A.
The Income Tax Department appealed the High Court's decision before the Supreme Court. On April 10, 2026, the Supreme Court remitted this and similar cases back to the High Courts for fresh consideration following the Finance Act, 2026's retrospective amendment, without ruling on the merits.
During the fresh hearing, counsel for the petitioner, Adv. Sham V. Walve pointed out that parallel appellate proceedings challenging the reassessment order were already pending before the Commissioner of Income Tax (Appeals).
However, after the High Court had quashed the reassessment notice in August 2024, the Commissioner (Appeals) treated the appeal as defunct and refrained from adjudicating the remaining grounds, while observing that the appeal could be revived if the Department ultimately succeeded on the Section 151A issue.
The petitioner further submitted that the Department’s subsequent appeal before the Income Tax Appellate Tribunal against the Commissioner (Appeals)’ order had also become infructuous because the reassessment order itself had already been quashed by the High Court.
Thus, the trust requested revival of its pending appeal before the Commissioner (Appeals), with liberty to raise all legal and factual challenges to the reassessment proceedings, including the issue of limitation for issuance of notice under Section 148.
The Division Bench ordered Revenue authorities to immediately revive the appeal pending at the NFAC. Additionally, the Court directed the Commissioner (Appeals) to adjudicate the matter freshly, providing the assessee is given a fair opportunity to be heard.
The bench permitted the trust to raise additional legal and factual grounds, including limitation issues for AY 2015-16. The Court stayed the March 22, 2023 reassessment order pending the appeal as an interim protection.
While disposing of the writ petition without ruling on the merits, the High Court directed the Commissioner (Appeals) to pass a reasoned order within three months, leaving all questions open for the appellate authority.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
