Shikhar Gadh Vs ITO (Punjab and Haryana High Court)
In the case of Shikhar Gadh vs Income Tax Officer (Punjab and Haryana High Court), the court addressed a writ petition challenging the validity of a notice issued under Section 148 of the Income Tax Act, 1961. The court referenced its prior rulings in Jasjit Singh vs Union of India and Jatinder Singh Bhangu vs Union of India, which emphasized that statutory provisions with financial implications must be strictly adhered to. It was held that instructions or circulars issued by the tax authorities cannot override legislative enactments. Specifically, the court reiterated that assessments under Section 148 must comply with the faceless assessment procedure mandated by Section 144B of the Act. Non-compliance with these statutory provisions renders such notices and subsequent proceedings invalid. Consequently, the court set aside the notice dated August 30, 2024, issued by the Jurisdictional Assessing Officer (JAO), along with all related proceedings, for lack of jurisdiction. However, the court clarified that the revenue authorities retain the liberty to proceed afresh by following the prescribed procedures under the Act. All pending applications associated with the case were disposed of in light of this ruling. This judgment reinforces the necessity for tax authorities to adhere strictly to statutory requirements and procedures in issuing notices and conducting assessments.
