Fastway Citizen Cable Network Pvt. Ltd. Vs DCIT (Punjab and Haryana High Court)
In the case of Fastway Citizen Cable Network Pvt. Ltd. Vs DCIT, the Punjab and Haryana High Court addressed the legality of tax notices issued under Section 148 of the Income Tax Act, 1961, and the subsequent proceedings. The matter involved notices issued by the Jurisdictional Assessing Officer (JAO) on 30.03.2023, which were challenged in the court. The court found that the notices and the related proceedings were contrary to the statutory provisions, particularly Section 144B of the Act, which mandates faceless assessments. This case had a strong link with two earlier decisions, Jasjit Singh Vs Union of India and Jatinder Singh Bhangu Vs Union of India, both of which had concluded that such circulars and instructions cannot override statutory provisions or make them redundant. The High Court held that while instructions and circulars can aid in the implementation of statutory provisions, they cannot contradict or supersede them, particularly when they affect taxpayers’ rights.
The court emphasized that notices issued without following the faceless assessment procedure under Section 144B of the Act, as prescribed in the Income Tax Act, were invalid. As a result, the court set aside the notices dated 28.02.2023, 16.03.2023, 20.03.2024, and 30.03.2023, along with the order dated 30.03.2023. This decision affirmed the earlier rulings, ensuring that tax authorities follow the proper legal process while issuing notices. The court allowed the writ petition, ruling that all proceedings initiated under the disputed notices lacked jurisdiction. In conclusion, the court disposed of all pending applications and reaffirmed that the notices and proceedings under Section 148 were without merit due to the failure to follow mandatory statutory requirements.
