Assessment Procedure Us 147

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An assessee received a notice under Section 148A(1) regarding the source of FD investments. Despite providing a reply and documents showing renewals, the AO passed an order under Section 148A(3) stating no reply was filed and issued a notice under Section 148. The assessee argues the 148A(3) order is invalid, citing a Bombay High Court ruling that such orders are invalid if a reply was indeed filed. The question is whether the AO is obligated to follow the Bombay High Court's precedent.

Krishna

Krishna (Querist)

22 December 2025 Assessee had received a notice us 148A(1), to explain the source of investment in FDs. We had replied to that notice before due date , it's not a new deposits deposits but a renewal of old deposits. Also relevant documents were enclosed to that notice. There after AO passed an order us 148A(3) , that no replied filed till date to notice us 148A(1) & issued a notice us 148. Now we filed a return us 148 & in assessment proceedings we also argued that order us 148A(3) is invalid. Also I had a jurisdictional high court that is Bombay High court writ petition order where it clearly says that such orders us 148A(3) is invalid. Now in my case it's obligatory for AO has to follow Bombay High court order or not ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

22 December 2025 Since your case falls under the jurisdiction of the Bombay High Court, its ruling is a binding precedent for your AO.
You have already argued the invalidity of the Section 148A(d) order during the assessment proceedings.
Given that the AO passed the order without considering your reply, the subsequent notice under Section 148 and the entire reassessment proceeding can be challenged as invalid.
You have the right to file a writ petition with the appropriate High Court to challenge the legality and validity of the notice and order, even during or after the assessment proceedings

Krishna

Krishna (Querist)

22 December 2025 ok sir. thank you very much

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

22 December 2025 You are welcome.

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