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

This query is : Resolved

Quick Summary

If a notice under Section 148 of the Income Tax Act is set aside due to a jurisdictional error, any subsequent penalty orders stemming from it are typically considered void. However, to ensure these are officially cancelled and removed from the system, it's advisable to file a representation or appeal with the relevant tax authorities. This proactive step will help avoid future complications, such as demand notices or recovery proceedings, and ensure the digital record accurately reflects the cancellation.

T.N.Reddy

T.N.Reddy (Querist)
Follow

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)
Follow

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)
Follow

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)
Follow

27 September 2025 Good luck..

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now