Authority: High Court of Punjab & Haryana at Chandigarh

Order Date: 20 May 2025

Case Overview

  • Parties: Petitioner – M/s Karnal Motors Private Limited; Respondents – National Faceless Assessment Centre, Delhi & others.
  • Nature of Proceeding: Writ petition challenging the validity of notices and subsequent proceedings issued by the Jurisdictional Assessing Officer (JAO) under the Income Tax Act, 1961.
  • Key Dates & Notices: Notice dated 29.03.2024 (Annexure P‑8) issued under Section 148 of the Income Tax Act, 1961; earlier notices dated 28.02.2023, 16.03.2023, 20.03.2024, 30.03.2023 and an order dated 30.03.2023 were also referenced.
  • Legal Background: The Court observed that the issues had been conclusively decided in:
  • Jasjit Singh vs Union of India (CWP No.21509 of 2023) decided 29 July 2024.
  • Jatinder Singh Bhangu vs Union of India (CWP No.15745 of 2024) decided 19 July 2024.
  • Principles Reaffirmed:
  • Circulars or instructions issued by the Board cannot override statutory provisions; they must merely supplement the law for implementation.
  • Notices issued by a JAO under Section 148 without conducting the faceless assessment mandated by Section 144B(7 & 8) are ultra vires and lack jurisdiction.
  • Legislative enactments with financial implications must be strictly followed.

Observations & Reasoning

  • The Court held that the notices dated 28.02.2023, 16.03.2023, 20.03.2024, 30.03.2023 and the order dated 30.03.2023 were set aside for want of jurisdiction because they were issued without the faceless assessment process.
  • The notice dated 29.03.2024 (Annexure P‑8) issued by the JAO under Section 148 was likewise set aside.
  • The revenue department retains the liberty to follow the procedure prescribed under the Income Tax Act, 1961, and may re‑issue notices in compliance with the faceless assessment provisions.

Final Outcome

  • All writ petitions filed by Karnal Motors Private Limited were allowed.
  • The interim order previously passed by the Court stands merged with this final order.
  • The revenue authority may proceed with assessment actions only after adhering to the statutory faceless assessment mechanism.

Topics: Taxation, Judicial Review, Income Tax Assessment