Authority: High Court of Punjab and Haryana at Chandigarh

Order Date: 24 September 2024

Case Overview

  • Petitioner: Hisar Spinning Mills Ltd.
  • Respondents: Union of India and others (revenue authorities).
  • Nature of proceeding: Writ petition challenging notices and orders issued by revenue authorities under the Income Tax Act, 1961.
  • Key background: The petition relied on earlier judgments of this Court in (i) Jasjit Singh vs. Union of India (CWP No.21509 of 2023, decided 29 July 2024) and (ii) Jatinder Singh Bhangu vs. Union of India (CWP No.15745 of 2024, decided 19 July 2024). Those precedents held that circulars or instructions cannot override statutory provisions and that faceless assessment under Section 144B of the Act is mandatory.
  • Specific allegations: The revenue department issued notices and orders without adhering to the faceless assessment procedure, thereby exceeding jurisdiction under Sections 119, 120, 144B(7&8) and Section 148/148A of the Income Tax Act.

Court Findings & Reasoning

  • The Court affirmed the view expressed in the Coordinate Bench judgments that statutory provisions must be strictly followed and that any circular or instruction that attempts to render them otiose is invalid.
  • Notices issued by the Jurisdictional Assessing Officer (JAO) under Section 148 of the Act and the subsequent proceedings, which did not incorporate faceless assessment, were found to be contrary to the Act.
  • Consequently, the following notices and orders were declared void for want of jurisdiction:
  • Notice dated 28‑02‑2023
  • Notice dated 16‑03‑2023
  • Notice dated 20‑03‑2024
  • Notice dated 30‑03‑2023
  • Order dated 30‑03‑2023
  • Additionally, the Court set aside:
  • Notice issued u/s 148A(b) dated 22‑03‑2024
  • Order issued u/s 148A(d) dated 31‑03‑2024
  • Notice issued u/s 148 dated 31‑03‑2024
  • All pending applications related to these notices were disposed of.
  • The interim order previously passed by the Court stands merged with the present order.

Final Outcome

  • The writ petition is allowed in its entirety.
  • All the aforementioned notices and orders are set aside for lack of jurisdiction.
  • The revenue department may proceed only in accordance with the procedures laid down under the Income Tax Act, 1961, including faceless assessment where applicable.
  • All pending applications are dismissed.

Topics: Tax Assessment, Judicial Review