Authority: Supreme Court of India

Order Date: 18-09-2026

Case Overview

  • Petition for Special Leave to Appeal (C) No.33196/2026 filed by Union of India & Ors. against Bharat Industrial Enterprises Pvt Ltd.
  • The appeal arises from the impugned final judgment and order dated 10-09-2026 in CWP No.11303/2026 passed by the High Court of Punjab & Haryana at Chandigarh.
  • IA No.283537/2026 seeks exemption from filing a copy/certificate of the impugned judgment.
  • Coram: Hon'ble Mr. Justice J.B. Pardiwala and Hon'ble Mr. Justice K. Vinod Chandran.
  • Counsel for Petitioners: Mr. N. Venkataraman (ASG), Mr. Sudarshan Lamba (AOR), Mr. V.C. Bharathi, Adv. Bhuvan Kapoor, Adv. Harsh Nithin Gokhle.
  • No counsel listed for Respondent.
  • The High Court had declared Section 147A of the Income Tax Act, 1961, unconstitutional.
  • The Supreme Court identified three substantive questions regarding the applicability of faceless assessing officer provisions under Sections 148, 148A, and the validity of Section 147A as a validation enactment.

Order Details

1. The Court heard Mr. N. Venkataraman, the learned ASG appearing for the petitioner.

2. It noted that the High Court declared Section 147A of the Income Tax Act, 1961, unconstitutional.

3. The Court framed three questions for consideration:

  • Whether the High Court erred in holding that notices under Sections 148 and 148A must be issued only by the Faceless Assessing Officer, given that Section 144B (the sole repository of the Faceless Regime) makes no reference to these sections and the scheme dated 29.03.2022 under Section 151A limits faceless application.
  • Whether the High Court erred in holding that notices under Sections 148 and 148A must be issued only by the Faceless Assessing Officer, overlooking the absence of any Notification under Section 120 empowering the Faceless Assessing Officer for such functions.
  • Whether the High Court erred in holding that Section 147A does not qualify as a Validation Enactment, ignoring that Section 147A operates notwithstanding any judgment, Section 151A, and the Scheme dated 29.03.2022, and prescribes the Assessing Officer for Sections 148 and 148A, which is not the Faceless Assessing Officer.

4. Leave to appeal was granted.

5. The impugned judgment and order of the High Court are stayed from operation on the condition that assessment and reassessment proceedings shall not proceed further until the final disposal of the main matter.

6. The appeal is to be notified for final hearing on 03.12.2026.

Final Outcome

  • The Supreme Court granted special leave to appeal, stayed the High Court’s declaration of unconstitutionality of Section 147A, and prohibited any further assessment or reassessment proceedings pending the final hearing scheduled for 3 December 2026.

Topics: Taxation, Judicial Review, Income Tax Act