Authority: High Court of Punjab and Haryana at Chandigarh
Order Date: 19 October 2024
Case Overview
- Parties: Rana Informatics Private Ltd (Petitioner) vs. Union of India and others (Respondents).
- Nature of Proceeding: Writ petition challenging the validity of Income Tax notices issued under Section 148 of the Income Tax Act, 1961 and the procedural compliance of assessments under Section 144B.
- Background: The petitioner contended that several circulars and instructions issued by the Board of Revenue (Bo) attempted to override statutory provisions of the Income Tax Act, rendering them otiose. The Court referenced earlier decisions: Jasjit Singh vs. Union of India (dated 29 July 2024, No.21509 of 2023) and Jatinder Singh Bhangu vs. Union of India (dated 19 July 2024, No.15745 of 2024), wherein the Coordinate Bench held that such circulars cannot supersede statutory law.
- Legal Provisions Discussed: Sections 11, 144B(7 & 8), and 148 of the Income Tax Act, 1961. The Court emphasized that statutory enactments with financial implications must be followed strictly and that circulars may only supplement, not replace, statutory provisions.
- Observations: The Court found that notices dated 28‑02‑2023, 16‑03‑2023, 20‑03‑2023, and 30‑03‑2023, along with the order dated 30‑03‑2023, were issued without proper jurisdiction as they bypassed the faceless assessment mechanism mandated under Section 144B. Similarly, a notice dated 31‑03‑2024 was also set aside.
Final Outcome
- All writ petitions filed by Rana Informatics Private Ltd are allowed.
- Notices issued under Section 148 of the Income Tax Act, 1961 by the Jurisdictional Assessing Officer, and the consequential proceedings, are set aside for want of jurisdiction.
- The interim order previously passed by the Court is merged with the present order.
- All pending applications related to the matter are disposed of.
Topics: Tax Litigation, Income Tax Act Interpretation, Judicial Review of Revenue Circulars