K.S. Overseas Tax Notices Set Aside

Authority: High Court of Punjab and Haryana at Chandigarh

Order Date: 16 December 2024

Petitioner: K.S. Overseas Private Limited
Respondents: Union of India and others (Revenue Department)
The petition challenged a series of Income Tax notices and orders issued under Sections 148, 148A(b), 148A(d) and Section 144B of the Income Tax Act, 1961.
The Court observed that the matters had already been exhaustively examined in earlier judgments: CWP No.21509 of 2023 (Jasjit Singh vs Union of India, decided 29 July 2024) and CWP No.15745 of 2024 (Jatinder Singh Bhangu vs Union of India, decided 19 July 2024).
Those precedents held that circulars or instructions cannot override statutory provisions and that notices issued without the faceless assessment mandated by Section 144B are ultra vires.
The Court reiterated that legislative enactments with financial implications must be followed strictly; circulars may only supplement, not supplant, statutory law.

All writ petitions filed by K.S. Overseas Private Limited are allowed.
Notices dated 28‑02‑2023, 16‑03‑2023, 20‑03‑2024, and 30‑03‑2023, and the order dated 30‑03‑2023 issued under Section 148 of the Act are set aside for lack of jurisdiction.
Notices dated 31‑03‑2023 and 17‑04‑2023 issued under Section 148A(b), the order dated 25‑04‑2023 under Section 148A(d), and the notice dated 25‑04‑2023 under Section 148 are also set aside.
All pending applications in the matter are disposed of accordingly.
The Revenue Department is at liberty to pursue the correct procedure laid down under the Act, if so advised.
The interim order previously passed merges with this final order.

Topics: Tax Law, Judicial Review