Punjab & Haryana HC sets aside S.148 Notice for Non-Compliance with Faceless Assessment Process [Read Order]
Finding that the JAO had failed to follow the prescribed legal procedures, the Court quashed the notice dated 27.03.2024 and all related proceedings
Punjab-Haryana HC – Notice – Non-Compliance – Faceless Assessment Process – taxscan
Punjab-Haryana HC – Notice – Non-Compliance – Faceless Assessment Process – taxscan
In the recent ruling, the High Court of Punjab and Haryana set aside a notice issued under Section 148 of the Income Tax Act, 1961, for non-compliance with the mandatory faceless assessment process under Section 144B of the Act.
Mohan Jit Singh,petitioner-assessee,filed a writ petition challenging the notice issued under Section 148 of the Act, by the Jurisdictional Assessing Officer ( JAO ), along with the consequential proceedings.
Both counsels for the assessee and the revenue agreed that the issue had already been conclusively examined by the Court in two prior cases: Jasjit Singh vs. Union of India (CWP No. 21509 of 2023) and Jatinder Singh Bhangu vs. Union of India ( CWP No. 15745 of 2024 ).
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In the Jasjit Singh case, the Court held that circulars or instructions issued by the Board could not override statutory provisions, particularly those with financial implications. The Court emphasized that such instructions were intended only to supplement statutory provisions and assist in their implementation, not to render them obsolete.
The Court further clarified that the JAO could not initiate proceedings under Section 148 without adhering to the faceless assessment process outlined in Section 144B of the Income Tax Act.
Relying on these earlier decisions, the Court found that the notice issued by the JAO on 27.03.2024 under Section 148, along with the subsequent proceedings, did not comply with the statutory requirements. As a result, the notice and the related proceedings were set aside for failing to follow the prescribed legal procedure.
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The division bench of Sanjeev Prakash Sharma ( Judge ) and Sanjay Vashisth ( Judge ) allowed the writ petition, set aside the notice and proceedings, and applied the principles from the previous judgments mutatis mutandis to the present case.
All pending applications were disposed of in line with the Court's final order. This ruling reinforced the need for strict compliance with statutory procedures in tax matters, particularly in actions taken by the JAO.
To Read the full text of the Order CLICK HERE
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