Authority: High Court of Punjab and Haryana at Chandigarh

Order Date: 23 September 2024

Case Overview

  • Petitioners: Sushil Kumar Bansal (represented by Mr. Puneet Kansal and Ms. Monika Kansal).
  • Respondents: Union of India and other revenue authorities (represented by Ms. Urvashi Dhugga, Sr. Standing Counsel).
  • Bench: Hon'ble Mr. Justice Sanjeev Prakash Sharma and Hon'ble Mr. Justice Sanjay Vashisht.
  • The petition challenges several tax notices and orders issued by revenue authorities under the Income Tax Act, 1961.
  • The Court notes that the issues were previously examined in CWP No.21509 of 2023 (Jasjit Singh vs. Union of India, decided 29‑07‑2024) and CWP No.15745 of 2024 (Jatinder Singh Bhangu vs. Union of India, decided 19‑07‑2024).
  • Those precedents held that circulars or instructions cannot override statutory provisions and must only supplement them.
  • The Court emphasized that Sections 119, 120 of the Act and Sections 144B(7 & 8) restrict authorities from usurping legal provisions, and that faceless assessment under Section 144B is mandatory.

Findings & Reasoning

  • Notices issued by the Jurisdictional Assessing Officer (JAO) under Section 148 of the Act, without conducting faceless assessment as envisaged under Section 144B, are contrary to the Act.
  • Specific notices dated 28‑02‑2023, 16‑03‑2023, 20‑03‑2024, and 30‑03‑2023, together with the order dated 30‑03‑2023, were found to be issued without jurisdiction.
  • The notice issued by the JAO dated 27‑03‑2024 was similarly ultra vires.
  • The Court held that the revenue authorities remain free to follow the procedure laid down in the Act, but must do so within the statutory framework.

Final Outcome

  • All writ petitions filed by the petitioner are allowed.
  • Notices dated 28‑02‑2023, 16‑03‑2023, 20‑03‑2024, 30‑03‑2023 and the order of 30‑03‑2023 are set aside for want of jurisdiction.
  • The notice dated 27‑03‑2024 issued by the Jurisdictional Assessing Officer under Section 148 is also set aside.
  • All pending applications in these matters are disposed of.
  • The interim order previously passed merges with this final order.

Topics: Tax Assessment, Judicial Review