Authority: High Court of Punjab and Haryana at Chandigarh

Order Date: 24 September 2024

Case Overview

  • Petitioner: Rajnish Industries Pvt. Ltd.
  • Respondents: Union of India and others (Revenue Department).
  • Case Number: CWP-24650-2024.
  • Bench: Hon'ble Mr. Justice Sanjeev Prakash Sharma and Hon'ble Mr. Justice Sanjay Vashisht.
  • Counsel for Petitioner: Mr. Rakesh Bhatia and Mr. Manpreet S. Kanda.
  • Standing Counsel for Respondents: Mr. Ranvijay Singh.
  • Nature of Proceeding: Writ petition challenging tax assessment notices issued under the Income Tax Act, 1961.
  • Legal Background: The Court noted that the issues had been previously examined in:
  • CWP No.21509 of 2023 (Jasjit Singh vs. Union of India), decided 29 July 2024.
  • CWP No.15745 of 2024 (Jatinder Singh Bhangu vs. Union of India), decided 19 July 2024.
  • Key Judicial Observations:
  • Circulars or instructions issued by the Board cannot override statutory provisions; they must only supplement the Act for implementation.
  • Sections 119, 120, and 144B(7 & 8) of the Income Tax Act, 1961, limit the authority of revenue officials from usurping legal provisions.
  • Notices issued by the Jurisdictional Assessing Officer (JAO) under Section 148, and subsequent proceedings without faceless assessment under Section 144B, were contrary to the Act.

Findings & Orders

1. Notices dated 28.02.2023, 16.03.2023, 20.03.2024, and 30.03.2023, together with the order dated 30.03.2023, are set aside for want of jurisdiction.

2. Notice issued by the JAO under Section 148 dated 28.08.2024 and order passed under Section 148A(d) dated 28.08.2024, along with consequential proceedings, are set aside.

3. All pending applications in the matter are disposed of accordingly.

4. The interim order previously passed by the Court stands merged with the present order.

5. The revenue department is at liberty to follow the procedure laid down under the Income Tax Act, 1961, if it so advises.

Final Outcome

  • The writ petition is allowed in its entirety; all challenged tax notices and related orders are annulled, and the matter is closed pending any fresh, law‑compliant assessment by the revenue.

Topics: Tax Assessment, Income Tax Act, Judicial Review