Authority: High Court of Punjab and Haryana at Chandigarh
Order Date: 16 October 2024
Case Overview
- Parties: Petitioner Faridabad Forgings Private Ltd versus Respondents Income Tax Officer and others.
- Counsel: Advocate Nikhil Goyal and Ms. Dewangana Chhillar appeared for the petitioner; respondents were represented by the Revenue.
- Issue: Validity of notices and orders issued under Sections 148, 148A of the Income Tax Act, 1961, alleged to have been issued without the faceless assessment mandated by Section 144B, thereby lacking jurisdiction.
- The Court observed that the matter had already been conclusively examined in CWP No.21509 of 2023 (Jasjit Singh vs. Union of India) and CWP No.15745 of 2024 (Jatinder Singh Bhangu vs. Union of India), holding that circulars or instructions cannot override statutory provisions and that notices issued without faceless assessment are ultra vires.
- Accordingly, the Court set aside the following:
- Notices dated 28‑02‑2023, 16‑03‑2023, 20‑03‑2024, 30‑03‑2023 and the order dated 30‑03‑2023 issued under Section 148.
- Notices under Section 148A(b) dated 11‑03‑2024 and 30‑03‑2024.
- Order under Section 148A(d) dated 16‑04‑2024 and notice dated 16‑04‑2024 issued by the Jurisdictional Assessing Officer under Section 148.
Final Outcome
- All writ petitions are allowed.
- The aforementioned notices and orders are set aside for want of jurisdiction.
- All pending applications in the matter stand disposed.
- The interim order previously passed merges with the present order.
- The Revenue may proceed only in accordance with the procedures laid down under the Income Tax Act, 1961.
Topics: Tax Assessment, Judicial Precedent, Income Tax Law