Authority: High Court of Punjab and Haryana at Chandigarh
Order Date: 24 September 2024
Case Overview
- Petitioner: M3M India Private Limited
- Respondents: Deputy Commissioner of Income Tax and others (revenue department)
- Case Number: CWP-24687-2024
- Bench: Hon'ble Mr. Justice Sanjeev Prakash Sharma and Hon'ble Mr. Justice Sanjay Vashisht
- Counsel: Mr. Nikhil Goyal (advocate for petitioner); Ms. Urvashi Dhugga, Sr. Standing Counsel (for respondents)
- Background: The petitioner challenged several income‑tax notices and orders issued by the assessing officer, alleging procedural irregularities and violation of statutory provisions governing faceless assessment.
- Precedent Cited: The Court relied on two earlier judgments – Jasjit Singh vs. Union of India (CWP No.21509 of 2023, decided 29‑07‑2024) and Jatinder Singh Bhangu vs. Union of India (CWP No.15745 of 2024, decided 19‑07‑2024) – which held that circulars or instructions cannot override statutory provisions and that notices issued without faceless assessment under Section 144B are ultra vires.
- Statutory Provisions Discussed: Sections 119, 120 of the Income‑Tax Act, 1961; Section 144B(7 & 8); Section 148 and Section 148A(b) & (d).
Final Outcome
- The Court set aside the following notices and orders for lack of jurisdiction and non‑compliance with the faceless assessment requirement:
- Notices dated 28‑02‑2023, 16‑03‑2023, 20‑03‑2024, 30‑03‑2023 issued under Section 148.
- Order dated 30‑03‑2023 issued under Section 148.
- Notice dated 17‑08‑2024 issued under Section 148A(b).
- Order dated 31‑08‑2024 issued under Section 148A(d).
- Notice dated 31‑08‑2024 issued under Section 148.
- All pending applications in the matter are disposed of.
- The interim order previously passed by the Court stands merged with this final order.
- The revenue department is at liberty to re‑initiate assessment strictly following the procedures laid down in the Income‑Tax Act, including the faceless assessment mechanism.
Topics: Income Tax Assessment, Legal Precedent