Authority: High Court of Punjab and Haryana at Chandigarh

Order Date: 05 September 2024

Case Overview

  • Petitioner: Kailash Chander HUF; Respondents: Union of India and others, including the Income Tax Department.
  • The petition challenged notices issued by the Jurisdictional Assessing Officer (JAO) under Section 148 and Section 148A(d) of the Income Tax Act, 1961, dated 29 January 2024.
  • The Court noted that the substantive issue had already been decided in Jasjit Singh vs. Union of India (CWP No.21509 of 2023, decided 29 July 2024) and Jatinder Singh Bhangu vs. Union of India (CWP No.15745 of 2024, decided 19 July 2024), which held that circulars cannot override statutory provisions and that notices issued without faceless assessment under Section 144B are ultra vires.
  • The Court reiterated that instructions and circulars may only supplement, not supplant, statutory provisions, and that notices issued without complying with the faceless assessment procedure are contrary to the Act.

Final Outcome

  • The writ petition is allowed; the notice dated 29 January 2024 issued under Section 148 and Section 148A(d) is set aside for lack of jurisdiction.
  • All pending applications in the matter are disposed of.
  • The interim order previously passed merges with the present order.

Topics: Tax Assessment, Judicial Decision