AO Can’t Review Order Passed Under Section 148A(d) | HC

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Section 148A(d) Reassessment

Case Details: Baba Global Ltd. vs. Assistant Commissioner of Income-tax - [2025] 176 taxmann.com 466 (Delhi)

Judiciary and Counsel Details

  • Vibhu Bakhru & Tejas Karia, JJ.
  • Ved Jain, Nischay Kantoor & Ms Soniya Dodeja, Advs. for the Petitioner.
  • Shlok Chandra, Ms Nancy Jain & Ms Madhavi Shukla, Advs. for the Respondent.

Facts of the Case

The petitioner filed its return of income for the relevant assessment year. Subsequently, the Assessing Officer (AO) issued a notice under Section 148A(b) to the petitioner calling upon it to show cause why a notice under Section 148 should not be issued. The assessee responded to the notice by furnishing the requisite information and reasons.

The AO, after considering the response, issued an order under Section 148A(d) dropping the proceedings. However, the AO, at the instance of the ‘specified authority,’ reviewed the said order and issued another order under Section 148A(b) holding that it was a fit case for the issuance of notice under Section 148.

The matter reached the Delhi High Court.

High Court Held

The Delhi High Court held that Section 148A(d) mandated that the AO decides whether or not it is a fit case to issue a notice under Section 148 by passing an order with the prior approval of the specified authority. The AO is a deciding authority.

In the present case, the AO had initially decided that it was not a fit case for issuance of a notice under Section 148 but subsequently revised the decision, apparently based on approval from the specified authority. The subsequent order issued by the AO was contrary to the first order. It was a case of reviewing the order, not a clerical or typographical error. Thus, the AO has no power to review an order under Section 148A(d).

List of Cases Reviewed

List of Cases Referred to

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied