Delhi HC upheld Concurrent Jurisdiction of JAO/FAO for issuing notice under section 148

The Delhi High Court held that the impugned notices issued under Section 148 by the Jurisdictional Assessing Officer (JAO) are not void ab initio, reiterating its consistent view in TKS Builders (P.) Ltd. that both JAO and FAO possess concurrent jurisdiction to initiate reassessment proceedings under the Act. The Court rejected the petitioners’ reliance on judgments asserting exclusive FAO jurisdiction, noting that the dismissal of SLPs in limine-including those in Prakash Pandurang Patil and Deepanjan Roy-does not constitute any declaration of law or a binding precedent, in line with principles laid down in Kunhayammed, Fuljit Kaur, and Khoday Distilleries. It observed that neither Section 151A nor the “E-Assessment of Income Escaping Assessment Scheme, 2022” divests the JAO of authority within Delhi, as the statutory scheme has already been interpreted by this Court. The Court also clarified that no stay has been granted by the Supreme Court on the operation of TKS Builders, and interim stays in individual matters do not dilute the binding effect of the earlier judgment. Accordingly, finding no merit in the petitions, the Court dismissed them along with pending applications.

The copy of the order is as under:

1763972871848