Authority: High Court of Punjab and Haryana at Chandigarh

Order Date: 10 September 2024

Case Overview

  • Petition filed by Hero Cycles Limited (petitioner) against Principal Commissioner of Income Tax, Ludhiana and other Income Tax officials (respondents).
  • Respondents had issued a final assessment order dated 22 Mar 2024 and earlier notices dated 28 Feb 2023, 16 Mar 2023, 20 Mar 2024, and 30 Mar 2023 under Section 148 of the Income Tax Act, 1961, and proceeded with faceless assessment under Section 144B.
  • The Court noted an interim order dated 25 Apr 2023 restraining the respondents from passing the final order.
  • The judgment relied on earlier coordinate‑bench decisions in Jasjit Singh vs Union of India (29 Jul 2024) and Jatinder Singh Bhangu vs Union of India (19 Jul 2024), which held that circulars or instructions cannot override statutory provisions.

Final Outcome

  • All writ petitions were allowed.
  • Notices dated 28 Feb 2023, 16 Mar 2023, 20 Mar 2024, 30 Mar 2023 and the final order dated 22 Mar 2024 are set aside for lack of jurisdiction.
  • The interim order of 25 Apr 2023 remains operative.
  • Respondents must follow the procedure laid down in the Income Tax Act, 1961; a notice is issued to the assessing officer to explain his conduct, but no contempt proceedings under Section 12 of the Contempt of Courts Act, 1971 will be initiated.

Topics: Tax Litigation, Income Tax Assessment