Authority: Punjab and Haryana High Court, Chandigarh

Order Date: 06 November 2024

Case Overview

  • Petitioner: Knox Agencies (CWP‑30024‑2024)
  • Respondents: Union of India and others (Revenue Department)
  • Bench: Hon'ble Mr. Justice Sanjeev Prakash Sharma and Hon'ble Mr. Justice Sanjay Vashisht
  • Counsel: Mr. Anurag Sharma (advocate for petitioner); Mr. Ranvijay Singh, Sr. Standing Counsel (for respondents – revenue)
  • Nature of Proceeding: Writ petition challenging income‑tax notices and orders issued under the Income Tax Act, 1961.
  • Background: The petitioners argued that the notices issued by the Jurisdictional Assessing Officer (JAO) under Section 148 and Section 148A(d) of the Act were issued without complying with the faceless assessment procedure mandated by Section 144B of the Act. The Court noted that the issue had already been examined in two earlier judgments:
  • CWP No.21509 of 2023 (Jasjit Singh vs. Union of India) decided on 29‑07‑2024, and
  • CWP No.15745 of 2024 (Jatinder Singh Bhangu vs. Union of India) decided on 19‑07‑2024.
  • Legal Provisions Cited: Sections 119, 120, 144B(7 & 8) of the Income Tax Act, 1961; Sections 148 and 148A(d) of the Act.
  • Key Observations:
  • Circulars or instructions issued by the Board cannot override statutory provisions or render them otiose.
  • Legislative enactments with financial implications must be followed strictly and mandatorily.
  • Authorities cannot usurp legal provisions to cause hardship to assessees; such actions create confusion.
  • Instructions and circulars may only supplement statutory provisions for implementation.

Final Outcome

  • The Court held that the notices dated 28‑02‑2023, 16‑03‑2023, 20‑03‑2024, and 30‑03‑2023, together with the order dated 30‑03‑2023, issued by the JAO under Section 148 are set aside for want of jurisdiction because they were issued without the faceless assessment mandated by Section 144B.
  • The order issued by the Jurisdictional Assessing Officer under Section 148A(d) dated 21‑02‑2024, and the notice issued under Section 148 dated 21‑02‑2024, along with all consequential proceedings, are also set aside.
  • All writ petitions are allowed. The interim order previously passed merges with the present order.
  • The revenue department is at liberty to follow the procedure laid down under the Act and may re‑initiate proceedings in compliance with the statutory provisions.
  • All pending applications in the matter are disposed of accordingly.

Topics: Taxation, Judicial Review