Authority: High Court of Punjab and Haryana at Chandigarh

Order Date: 18 October 2024

Case Overview

  • Petitioners: BANSAL RICE & GENERAL MILLS, Arrai Pura Road, Gharaunda, District Karnal.
  • Respondents: National Faceless Assessment Centre, Delhi through Additional/Joint/Deputy/Assistant Commissioner of Income Tax, Income Tax Officer, Delhi and others (Income Tax Department).
  • The petition challenged notices issued under Section 148 of the Income Tax Act, 1961 and subsequent proceedings that did not follow faceless assessment under Section 144B.
  • The Court referred to earlier judgments: No.21509 of 2023 (Jasjit Singh vs Union of India) decided 29 July 2024, and the coordinate bench judgment (Jatinder Singh Bhangu vs Union of India) decided 19 July 2024, which held that circulars or instructions cannot override statutory provisions.
  • The Court reiterated that statutory provisions with financial implications must be strictly followed; circulars may only supplement, not supplant, the law.
  • The Court exercised powers under Sections 119 and 120 of the Income Tax Act, 1961 and Sections 144B(7) & (8) to assess jurisdiction.

Final Outcome

  • Notices issued by the Jurisdictional Assessing Officer under Section 148 dated 28‑02‑2023, 16‑03‑2023, 20‑03‑2024, 30‑03‑2023 and the order dated 30‑03‑2023 are set aside for lack of jurisdiction.
  • Notice dated 31‑08‑2024 is also set aside.
  • All writ petitions are allowed; the interim order previously passed stands merged with this order.
  • All pending applications in the matter are disposed of.
  • The respondents may proceed in accordance with the provisions of the Income Tax Act, 1961 if advised.

Topics: Taxation, Judicial Review, Faceless Assessment