Amarjit Kaur Vs Union of India And Others (Punjab and Haryana High Court)
In Amarjit Kaur Vs Union of India and Others, the Punjab and Haryana High Court addressed the legality of circulars issued by the Income Tax Department that contradicted statutory provisions of the Income Tax Act. The court referenced its previous rulings in related cases, notably Jasjit Singh vs. Union of India and Jatinder Singh Bhangu vs. Union of India, which established that the Income Tax Department’s circulars and instructions cannot override the statutory framework established by legislative enactments. The court emphasized that such circulars should only serve to supplement and facilitate the implementation of existing laws, not to undermine or nullify them.
The court found that notices issued under Section 148 of the Income Tax Act were issued without adhering to the faceless assessment procedures mandated by Section 144B of the Act. Consequently, the notices and subsequent proceedings were deemed lacking in jurisdiction and were set aside. The ruling reinforces the principle that the authorities must act within the confines of the law and cannot unilaterally alter statutory requirements, which could lead to confusion and hardship for taxpayers. The High Court allowed the writ petition, thereby nullifying the disputed notices and affirming the necessity for compliance with statutory provisions in all tax-related processes.
