Authority: High Court of Punjab and Haryana at Chandigarh
Order Date: 17 December 2024
Case Overview
- Petitioner: KBB NUTS PRIVATE LIMITED; Respondents: ACIT/DCIT, Central Circle and another (Revenue).
- The petition challenged multiple notices issued under Section 148 of the Income Tax Act, 1961 and subsequent proceedings that were not conducted through the faceless assessment mechanism prescribed under Section 144B of the Act.
- The Court observed that the issue had already been exhaustively examined in 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 faceless assessment are ultra vires.
- Accordingly, notices dated 28‑02‑2023, 16‑03‑2023, 20‑03‑2024, 30‑03‑2023 and the order dated 30‑03‑2023 were declared void for want of jurisdiction. The notice dated 13‑03‑2024 issued by the Jurisdictional Assessing Officer under Section 148 was also set aside.
Final Outcome
- The writ petition is allowed in the terms specified; all the aforementioned notices and the related proceedings are set aside for lack of jurisdiction.
- All pending applications in the matter stand disposed of.
- The Revenue Department may proceed with assessment only in accordance with the procedures laid down under the Income Tax Act, 1961.
Topics: Tax Litigation, Income Tax Assessment