Authority: High Court of Punjab and Haryana at Chandigarh

Order Date: 22 October 2024

Case Overview

  • Petitioner: Hero Cycles Ltd
  • Respondents: Chief Commissioner of Income Tax, Commissioner Tax, Amritsar and others
  • Case Numbers: CM-16205-CWP-2024, CM-16206-CWP-2024, and CWP-8405-2024 (O&M)
  • Coram: Hon'ble Mr. Justice Sanjeev Prakash Sharma and Hon'ble Mr. Justice Sanjay Vashisht
  • Counsel: For petitioner – Mr. Alok Mittal; for respondent No.1 – Ms. Urvashi Dhugga; for respondents No.2 & 3 – Mr. Ranvijay Singh
  • Background: The petitioner sought pre‑ponement of the main case and disposal of writ petition CWP No.15745 of 2024, invoking earlier judgments in Jatinder Singh Bhangu vs. Union of India (dated 19‑07‑2024) and Jasjit Singh vs. Union of India (No.21509 of 2023). The Court examined the legality of income‑tax circulars and instructions issued under the Income Tax Act, 1961.
  • Legal Provisions Discussed: Sections 119, 120, 144B(7 & 8), and 148 of the Income Tax Act, 1961. The Court emphasized that circulars must supplement statutory provisions and cannot override them.
  • Prior Orders/Nodices Set Aside: Notices dated 28‑02‑2023, 16‑03‑2023, 20‑03‑2024, and 30‑03‑2023, along with an order dated 30‑03‑2023, were set aside for lack of jurisdiction.

Final Outcome

  • All writ petitions, including the petitioner’s applications (CM‑16205‑CWP‑2024 & CM‑16206‑CWP‑2024), are allowed.
  • The interim order previously passed is merged with the present order.
  • The revenue department is directed to follow the procedure laid down under the Income Tax Act, 1961, specifically the provisions of Section 148, and to proceed accordingly.
  • All pending applications are disposed of.

Topics: Tax Assessment, Income Tax Law