Authority: High Court of Punjab and Haryana at Chandigarh
Order Date: 18‑December‑2024
Case Overview
- Parties: petitioner Cyberhub Developers LLP (LLP) vs. Assistant Commissioner of Income Tax & others (respondents).
- Nature of Proceeding: Writ petition challenging the validity of several Income Tax notices and subsequent proceedings issued under the Income Tax Act, 1961.
- Background References: The Court noted earlier judgments – India and others v. Union of India (CWP No.15745 of 2024, decided 19‑July‑2024) and Jasjit Singh v. Union of India (CWP No.21509 of 2023, decided 29‑July‑2024) – which held that circulars or instructions cannot override statutory provisions.
- Legal Provisions Cited: Sections 119, 120, 144B(7 & 8) of the Income Tax Act, 1961 (pertaining to powers of the Board and faceless assessment) and Section 148 (jurisdictional assessing officer’s notice).
- Court’s Reasoning: The Court affirmed that legislative enactments with financial implications must be strictly followed; circulars may only supplement, not supplant, statutes. Notices issued without adhering to the faceless assessment procedure under Section 144B are ultra vires and therefore void.
Final Outcome
- The Court allows the writ petition.
- Notices dated 28‑Feb‑2023, 16‑Mar‑2023, 20‑Mar‑2024, 30‑Mar‑2023 and the order dated 30‑Mar‑2023 are set aside for want of jurisdiction.
- The notice issued by the Jurisdictional Assessing Officer on 31‑Aug‑2024 under Section 148 is also set aside.
- All pending applications in the matter are disposed of.
- The revenue department is at liberty to follow the procedure laid down in the Act and may proceed accordingly if advised.
Topics: Tax Law, Judicial Review