Authority: High Court of Punjab and Haryana at Chandigarh

Order Date: 19 September 2024

Case Overview

  • Petitioners: S.S. Services Providers through its partner Sh. Sherry Singla (referred to as “Petitioner(s)”).
  • Respondents: Deputy Commissioner of Income Tax, Circle, Patiala, Punjab and others, including the Commissioner of Tax (referred to as “Respondent(s)”).
  • Counsel: For petitioners, Mr. B.M. Monga and Mr. Rohit Kaura, Advocates; for respondents, Mr. Amanpreet (A.P.) Singh, Senior Standing Counsel, Income Tax Department.
  • The matter was heard by Hon’ble Mr. Justice Sanjeev Prakash Sharma and Hon’ble Mr. Justice Sanjay Vashisht.
  • The Court referred to earlier judgments: Jasjit Singh vs. Union of India (dated 29‑07‑2024), Jatinder Singh Bhangu vs. Union of India and others (dated 19‑07‑2024), and CWP vs. India and others (CWP No.15745 of 2024, dated 19‑07‑2024).
  • The Court reiterated that circulars or instructions issued by the Board cannot override statutory provisions; they must merely supplement the law.
  • Relevant statutory provisions cited: Sections 119 and 120 of the Income Tax Act, 1961; Section 144B(7 & 8) of the Act; and Section 148 of the Act.
  • The Court emphasized that notices issued under Section 148 must be followed by a faceless assessment as mandated by Section 144B.

Findings & Reasoning

  • Notices dated 28‑02‑2023, 16‑03‑2023, 20‑03‑2024 and 30‑03‑2023, together with the order dated 30‑03‑2023, were issued without conducting the faceless assessment required under Section 144B.
  • Such notices were therefore beyond the jurisdiction of the Assessing Officer and were set aside.
  • The Court found no justification to distinguish this case from the earlier coordinate‑bench rulings; the same legal principles apply.
  • The respondents were directed to follow the procedure laid down under the Act if they wish to proceed further.

Final Outcome

  • All writ petitions filed by the petitioner are allowed.
  • The interim order previously passed by the Court stands merged with this final order.
  • Notices issued by the Jurisdictional Assessing Officer under Section 148 and the consequent proceedings are set aside for want of jurisdiction.
  • All pending applications in the writ petition are disposed of accordingly.

Topics: Tax Law, Judicial Review, Income Tax Assessment