Authority: High Court of Punjab and Haryana at Chandigarh
Order Date: 13 November 2024
Case Overview
- Petitioners: M/s GDPA Fastners; Respondents: Assistant Commissioner of Income Tax, Jalandhar (Revenue).
- Writ petition CWP‑30611‑2024 filed seeking quashing of notice issued u/s 148 of the Income Tax Act, 1961 dated 31‑Mar‑2024 and related proceedings.
- Counsel: Mr. S.K. Mukhi (petitioner), Sr. Standing Counsel Mr. Ranvijay Singh (respondent).
- The Court noted that the issues had been previously decided in CWP‑21509‑2023 (Jasjit Singh vs Union of India, decided 29‑Jul‑2024) and CWP‑15745‑2024 (Jatinder Singh Bhangu vs Union of India, decided 19‑Jul‑2024).
- Those precedents held that circulars or instructions cannot override statutory provisions and that notices under Section 148 must be followed by faceless assessment under Section 144B(7&8).
Observations & Reasoning
- The Court affirmed that statutory provisions of the Income Tax Act, 1961 (including Sections 119, 120 and 144B) are mandatory and cannot be usurped by revenue authorities.
- Notices issued by the Jurisdictional Assessing Officer u/s 148 dated 28‑Feb‑2023, 16‑Mar‑2023, 20‑Mar‑2024, 30‑Mar‑2023 and the order dated 30‑Mar‑2023 were found to be without jurisdiction as they were not preceded by faceless assessment.
- Accordingly, those notices and the order are set aside.
Final Outcome
- The writ petition is allowed.
- Notice dated 31‑Mar‑2024 u/s 148 and the consequential proceedings are set aside.
- All pending applications in the matter are disposed of.
- The Revenue Department may proceed only through the procedure laid down in the Income Tax Act, 1961, if advised.
- The interim order previously passed merges with this final order.
Topics: Taxation, Judicial Review