Authority: High Court of Punjab and Haryana at Chandigarh

Order Date: 16 October 2024

Case Overview

  • Parties: Petitioner – Unique Creations; Respondents – Income Tax Officer and another (revenue side).
  • Nature of Proceeding: Writ petition challenging the validity of several Income Tax notices issued under Section 148 of the Income Tax Act, 1961, and the conduct of proceedings without the faceless assessment mandated by Section 144B.
  • Background: The petitioner argued that the notices and subsequent proceedings were issued in contravention of statutory provisions. The Court noted that the issue had already been examined in two earlier judgments – Jasjit Singh vs. Union of India (CWP No.21509 of 2023, decided 29 July 2024) and Jatinder Singh Bhangu vs. Union of India (CWP No.15745 of 2024, decided 19 July 2024).
  • Key Observations:
  • Circulars or instructions issued by the Board cannot override statutory provisions; they may only supplement implementation.
  • Notices issued by the Jurisdictional Assessing Officer (JAO) under Section 148 and proceedings initiated without faceless assessment under Section 144B are contrary to the Act.
  • The Court reiterated the view of the Coordinate Bench that such actions cause hardship to assessees and create confusion.
  • Specific Notices Set Aside:
  • Notice dated 28‑02‑2023
  • Notice dated 16‑03‑2023
  • Notice dated 20‑03‑2024
  • Notice dated 30‑03‑2023
  • Order dated 30‑03‑2023
  • Notice dated 28‑08‑2024 issued by the Jurisdictional Assessing Officer under Section 148.
  • Procedural Direction: The revenue department may pursue assessment strictly in accordance with the provisions of the Income Tax Act, 1961, if it so advises.

Final Outcome

  • All writ petitions filed by Unique Creations are allowed.
  • The interim order previously passed merges with the present order.
  • All the aforementioned notices and the order dated 30‑03‑2023 are set aside for want of jurisdiction.
  • All pending applications in the matter are disposed of.
  • The revenue department retains the liberty to follow the statutory procedure for assessment.

Topics: Taxation, Judicial Review