Authority: High Court of Punjab and Haryana at Chandigarh
Order Date: 24 October 2024
Case Overview
- Parties: Vardhman Creations Private Limited (petitioner) vs Income Tax Officer and another (respondents).
- Judges: Hon’ble Mr. Justice Sanjeev Prakash Sharma and Hon’ble Mr. Justice Sanjay Vashisht.
- Counsel: Petitioner's advocates Mr. Divya Arora and Mr. Amit Kaushik; Respondents' Sr. Standing Counsel Ms. Gauri Neo Rampal.
- The petition challenged notices issued under Section 148 of the Income Tax Act, 1961 dated 28‑Feb‑2023, 16‑Mar‑2023, 20‑Mar‑2024, 30‑Mar‑2023 and an order dated 30‑Mar‑2023, as well as a notice dated 31‑Aug‑2024, alleging lack of jurisdiction because the assessments were not conducted facelessly under Section 144B.
- The Court relied on earlier judgments: CWP No.21509 of 2023 (Jasjit Singh vs Union of India, decided 29‑Jul‑2024) and CWP No.15745 of 2024 (Jatinder Singh Bhangu vs Union of India, decided 19‑Jul‑2024), which held that circulars cannot override statutory provisions and that notices issued without faceless assessment are ultra vires.
- The Court reiterated that powers under Sections 119, 120 of the Act 1961 and Section 144B(7 & 8) cannot be used to bypass statutory requirements.
Final Outcome
- All the notices dated 28‑Feb‑2023, 16‑Mar‑2023, 20‑Mar‑2024, 30‑Mar‑2023, the order dated 30‑Mar‑2023, and the notice dated 31‑Aug‑2024 are set aside for want of jurisdiction.
- The writ petition is allowed; the interim order previously passed merges with this final order.
- The revenue department may re‑issue notices in accordance with the procedures prescribed under the Income Tax Act, including faceless assessment under Section 144B.
- All pending applications in the matter are disposed of.
Topics: Tax Law, Judicial Decision