Authority: High Court of Punjab and Haryana at Chandigarh

Order Date: 16 September 2024

Case Overview

  • Petitioners: Tirlok Singh Sohi Sohi (individual)
  • Respondents: Union of India and others, represented by the Income Tax Department
  • The matter was heard by a bench comprising Justice Sanjeev Prakash Sharma and Justice Sanjay Vashisht. Senior Standing Counsel Yogesh Putney appeared for the respondents; Advocate Jatinder Kumar Kamboj represented the petitioner.
  • The Court referred to earlier judgments: Jasjit Singh vs. Union of India (CWP No.21509 of 2023, decided 29 July 2024) and Jatinder Singh Bhangu vs. Union of India (decided 19 July 2024). Both earlier decisions emphasized that statutory provisions cannot be overridden by circulars or instructions of the Board.
  • The central issue was whether notices issued by the Assessing Officer under Section 148 of the Income Tax Act, 1961, and subsequent proceedings initiated without conducting the faceless assessment mandated by Section 144B (7 & 8) were valid.

Observations & Reasoning

  • The Court held that circulars or instructions may only supplement statutory provisions; they cannot usurp or render statutory provisions otiose.
  • Notices dated 28‑02‑2023, 16‑03‑2023, 20‑03‑2024, and 30‑03‑2023, along with the order dated 30‑03‑2023, were issued without the faceless assessment required under Section 144B. Consequently, these notices and the consequent proceedings were beyond the jurisdiction of the Assessing Officer.
  • The Court found no justification to distinguish this case from the earlier rulings; the same legal principle applies.

Final Outcome

  • All writ petitions filed by the petitioner are allowed.
  • Notices issued under Section 148 and the related proceedings dated 28‑02‑2023, 16‑03‑2023, 20‑03‑2024, and 30‑03‑2023 are set aside for want of jurisdiction.
  • The respondents (Income Tax Department) may proceed in accordance with the provisions of the Income Tax Act, 1961, if they choose to do so.
  • The interim order previously passed merges with this present order.
  • All pending applications in the matter are disposed of accordingly.

Topics: Income Tax, Judicial Review