Authority: Punjab and Haryana High Court, Chandigarh

Order Date: 12 May 2025

Case Overview

  • Parties: Petitioner – M/s Krishna Washed Stone Crusher; Respondents – Assistant Commissioner of Income Central Circle‑2, Chandigarh and other Income Tax officials.
  • Nature of Proceeding: Petition challenging an Income Tax notice issued under the Income Tax Act, 1961, alleging that the notice was improperly issued by the Assessing Officer despite the faceless assessment notification dated 29 March 2022.
  • Key Dates: Petition filed on 8 March 2025 (Annexure P‑148); impugned notice dated 8 March 2025 (Annexure P‑1).
  • Legal Grounds: The petitioner contended that the notice violated procedural requirements of the faceless assessment system and cited two recent judgments of this Court – Jatinder Singh Bhangu (CWP‑15745‑2024, decided 19 July 2024) and Jasjit Singh (CWP‑21509‑2023, decided 29 July 2024) – as authority to set aside the notice.
  • Counsel: For the petitioner – Mr. Deepak Gupta and Mr. Kartik Bansal (Advocates). For the Income Tax Department – Mr. Yogesh Putney (Senior Standing Counsel) and Mr. Vaibhav Gupta (Standing Counsel).

Court Reasoning

  • The bench, comprising Hon’ble Mr. Justice Deepak Sibal and Hon’ble Ms. Justice Lapita Banerji, examined the cited precedents which held that notices issued contrary to the faceless assessment framework are liable to be quashed.
  • Applying the principles from Jatinder Singh Bhangu and Jasjit Singh, the Court found that the Assessing Officer had no jurisdiction to issue the notice in the manner alleged.
  • Consequently, the impugned notice dated 08.03.2025 was declared void and the proceedings against the petitioner were terminated.

Final Outcome

  • The petition is allowed.
  • The notice dated 08.03.2025 issued by the Assessing Officer is quashed.
  • No further action shall be taken against M/s Krishna Washed Stone Crusher in respect of the said notice.

Topics: Tax Litigation, Income Tax Assessment