JAO-FAO reassessment controversy remitted to High Courts in light of retrospective section 147A – interim stay on proceedings – Supreme Court

In brief

The Supreme Court has issued a common order¹, disposing a large batch of civil appeals (popularly referred to as the JAO–FAO batch) arising from reassessment proceedings under sections 147–151 of the Income-tax Act, 1961 (the Act). The impugned High Court decisions had set aside orders passed under section 148A(d) of the Act and consequential notices issued under section 148 of the Act on the ground that they were issued by Jurisdictional Assessing Officer(s) (JAO), rather than through the prescribed faceless mechanism or competent Faceless Assessment Officer(s) (FAO), while certain other High Courts had upheld the authority of the JAOs. The Supreme Court has remitted the matters to the respective High Courts for fresh adjudication in light of the retrospective insertion of section 147A by the Finance Act, 2026 (FA 2026).