Bhartiya Cottex Vs Union of India (Punjab and Haryana High Court)
In the case of Bhartiya Cottex Vs Union of India, the Punjab and Haryana High Court addressed the legality of notices issued under Section 148 of the Income Tax Act, 1961, without conducting the mandated faceless assessment under Section 144B. The court found the notices and subsequent proceedings initiated by the Jurisdictional Assessing Officer to be without jurisdiction because they were issued without conducting the required faceless assessment under Section 144B of the Income Tax Act, 1961. The court referenced earlier rulings in Jasjit Singh vs. Union of India and Jatinder Singh Bhangu vs. Union of India, which clarified that the authorities could not override statutory provisions with circulars or internal instructions. These earlier judgments established that legislative enactments with financial implications must be followed strictly, and the failure to conduct the faceless assessment violated the mandated procedure outlined in the Act. Consequently, the notices were deemed invalid, as they did not adhere to the legal requirements necessary for jurisdictional legitimacy. As a result, the notices dated 28.02.2023, 16.03.2023, 20.03.2024, and 31.08.2024 were annulled. The court allowed the writ petition and dismissed all pending applications, reinforcing the requirement for the authorities to follow established legal procedures in their assessments.
