Authority: High Court of Punjab and Haryana at Chandigarh

Order Date: 17 September 2024

Case Overview

  • Petitioners: Three S Infrastructure Pvt Ltd filed writ petitions against the Union of India and others (Income Tax Department).
  • The petitions challenged notices issued under Section 148 of the Income Tax Act, 1961 dated 28‑Feb‑2023, 16‑Mar‑2023, 20‑Mar‑2024 and 30‑Mar‑2023, and an order dated 30‑Mar‑2023, alleging lack of jurisdiction because faceless assessment under Section 144B was not conducted.
  • The Court relied on earlier judgments in Jasjit Singh vs. Union of India (29 July 2024) and Jatinder Singh Bhangu vs. Union of India (19 July 2024), which held that circulars or instructions cannot override statutory provisions of the Income Tax Act (including Sections 119, 120, 144B, 148).
  • The Court emphasized that statutory provisions having financial implications must be followed strictly and that circulars may only supplement, not usurp, the law.

Final Outcome

  • All the writ petitions filed by Three S Infrastructure were allowed.
  • Notices dated 28‑Feb‑2023, 16‑Mar‑2023, 20‑Mar‑2024 and 30‑Mar‑2023, together with the order dated 30‑Mar‑2023, were set aside for want of jurisdiction.
  • The respondents (Revenue) may proceed only in accordance with the procedures laid down under the Act, if advised.
  • All pending applications in the matter were disposed of, and the interim order previously passed stands merged with the present order.

Topics: Tax Law, Judicial Decision