Authority: Punjab and Haryana High Court, Chandigarh

Order Date: 03‑09‑2024

Case Overview

  • Parties: Hero Cycles Ltd. (Petitioner) vs. Chief Commissioner of Income Tax, Amritsar and other respondents.
  • Nature of Proceeding: Writ petition challenging income‑tax notices and assessment orders issued by revenue authorities.
  • Legal References: The Court relied on earlier judgments (CWP No.15745 of 2024 and CWP No.21509 of 2023) and invoked Sections 119, 120, 144B(7 & 8), 148, and 148A(d) of the Income Tax Act, 1961.
  • Key Reasoning: The Court held that circulars or instructions issued by the Board cannot override statutory provisions; they may only supplement the law for implementation. Notices issued without adhering to the faceless assessment procedure under Section 144B were deemed ultra vires.
  • Specific Notices Set Aside:
  • Notice dated 28‑Feb‑2023
  • Notice dated 16‑Mar‑2023
  • Notice dated 20‑Mar‑2024
  • Notice dated 30‑Mar‑2023
  • Assessment order dated 30‑Mar‑2023
  • Jurisdictional Assessing Officer notice under Section 148A(d) dated 28‑Aug‑2024 and all consequential proceedings.
  • Procedural Outcome: All pending applications in the matter were disposed of; the interim order previously passed merged with the present order.

Final Outcome

  • The Court allowed the writ petition, setting aside all the aforementioned notices and orders for lack of jurisdiction.
  • The revenue department may pursue assessment only by following the procedure prescribed under the Income Tax Act, 1961.
  • All writ petitions were allowed; the interim order stands merged with this judgment.

Topics: Tax Law, Judicial Relief