Sai Vinayakka Education Society Through Ashwani Sood Vs ACIT (Punjab and Haryana High Court)
In the case of Sai Vinayakka Education Society Through Ashwani Sood Vs ACIT, the Punjab and Haryana High Court addressed the validity of notices issued under Section 148 of the Income Tax Act. The court highlighted that the Income Tax Department failed to conduct faceless assessments as mandated by Section 144B of the Act before issuing such notices. This decision aligns with prior judgments in similar cases, notably Jasjit Singh vs. Union of India and Jatinder Singh Bhangu vs. Union of India, where it was established that circulars and instructions from the Board should not override statutory provisions or create confusion among taxpayers. The court emphasized the necessity of adhering to the legal framework in tax assessments and stated that the authorities could not modify legal provisions for their convenience.
As a result of this ruling, the court set aside the notices issued by the Jurisdictional Assessing Officer on March 16, 2024, along with all related proceedings for lack of jurisdiction. The judgment reiterates the importance of following established procedures within the Income Tax Act and provides the Income Tax Department the opportunity to proceed appropriately under the law if they choose to do so. This ruling underscores the judiciary’s role in ensuring that administrative actions comply with statutory requirements, thus protecting taxpayer rights against arbitrary decisions.
