Authority: High Court of Punjab and Haryana at Chandigarh

Order Date: 13 September 2024

Case Overview

  • Petitioners: M/s Baba Naga Rice and General Mills Naga filed a writ petition (CWP‑20229‑2024 (O&M)) against the Union of India and other respondents.
  • Respondents: Union of India, Revenue Department and other unnamed parties.
  • Coram: Hon'ble Mr. Justice Sanjeev Prakash Sharma and Hon'ble Mr. Justice Sanjay Vashisht.
  • Advocate for petitioner: Mr. Sandeep Goyal; Sr. Standing Counsel for respondents/Revenue: Mrs. Urvashi Dhugga.
  • The application for pre‑ponement of the main case was allowed, and the main case was taken up on the same day (13‑09‑2024).
  • The Court referred to earlier judgments: No.21509 of 2023 (Jasjit Singh vs Union of India) decided on 29‑07‑2024 and No.15745 of 2024 (Jatinder Singh Bhangu vs Union of India) decided on 19‑07‑2024, emphasizing that circulars or instructions cannot override statutory provisions of the Income Tax Act, 1961.
  • The Court held that provisions of Sections 119, 120 and 144B of the Income Tax Act, 1961 cannot be used to usurp legal provisions, as such actions cause hardship to assessees and create confusion.
  • Notices issued by the Assessing Officer under Section 148 of the Act without proper jurisdiction were found contrary to the Act. Specifically, notices dated 28‑02‑2023, 16‑03‑2023, 20‑03‑2024 and 30‑03‑2023, together with the order dated 30‑03‑2023, were set aside for want of jurisdiction.
  • The notice dated 17‑03‑2023 was also quashed and set aside.
  • The Court reiterated that the Revenue Department must follow the procedure laid down under the Act, 1961.

Final Outcome

  • All writ petitions filed by the petitioner were allowed.
  • The observations and orders passed in the earlier cases apply mutatis mutandis to the present case.
  • All pending applications in the matter stand disposed of accordingly.
  • The Court’s order establishes that revenue circulars and notices that attempt to override statutory provisions of the Income Tax Act are invalid, providing relief to the assessees involved.

Topics: Tax Law, Judicial Relief