Notice U/s.148- got setaside based on the jurisdictional error

This query is : Resolved

T.N.Reddy

T.N.Reddy

(Querist)
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27 September 2025 Dear Sir, for the A.Y. 2015-2016 and 2016-2017, the above subject notices were got setside based on the jurisdictional error. However, subsequenlty, Penalty orders are also uploaded in the portal. Do we have to do anything regarding such penalty orders, or automatically becomes in valid.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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27 September 2025 When assessment or reassessment proceedings are quashed or set aside owing to lack of jurisdiction, any consequential proceedings arising from those, including penalty orders, are also typically rendered void and without legal standing. Courts have held that when the notice and the assessment are quashed because the officer lacked jurisdiction, all proceedings arising from that action—including penalty—are ab initio illegal.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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27 September 2025 It is advisable to file a representation or appeal before the relevant Income Tax authority or Tribunal stating that since the principal order was set aside for lack of jurisdiction, consequential penalty orders must also be cancelled.

If penalty orders are still reflected on the portal, an application for rectification, or an appeal (as appropriate), should be filed to avoid any future complications, including demand notices or recovery proceedings.

Courts have specifically quashed both the initial notice and all consequential orders, but you must ensure the digital record is updated by following up with the assessing officer or relevant appellate forum.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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27 September 2025 Good luck..

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