In a recent case, the Punjab And Haryana High Court has held that absence of faceless assessment envisaged under section 144B of Income Tax Act, 961 invalidates Show Cause Notice ( SCN ).
Vipin Kumar Gupta, the petitioner filed the petition. Both the counsel are ad idem that the issue involved in the present petition stands finally examined and concluded by the Court titled as Jasjit Singh vs. Union of India and others, and by the Coordinate Bench in Jatinder Singh Bhangu vs. Union of India and others, decided on 19.07.2024.
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The Court in Jasjit Singh (supra) held as under “16. We are in agreement with the view taken by the Coordinate Bench and hold that such circular or instructions by the Board could not have been issued to override statutory provisions or to make them otiose or obsolete. Legislative enactments having financial implications are required to be followed strictly and mandatorily. By exercising the powers contained in Sections 119 and 120 of the Act, 1961 as well as Section 144B (7 & 8), the authorities cannot be allowed to usurp the legal provisions to their own satisfaction and convenience causing hardship to the assessees. It also leaves confusion in the minds of the taxpayers. In the opinion of this Court, instructions and circulars can be issued only for the purpose of supplementing the statutory provisions and for their implementation.”
While allowing the Writ Petition, the division bench of Justice Sanjeev Prakash Sharma and Justice Sanjay Vashisth set aside the notice dated 15.03.2024 issued by the Jurisdictional Assessing Officer under Section 148 of the Income Tax Act, 1961 and all consequential proceedings. Mr. Varun Issar, Senior Standing Counsel, accepts notice on behalf of the respondents/Income Tax Department.
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