2024 (10) TMI 1280 - HC - Income Tax

Validity of Faceless assessment of income escaping assessment - Challenge to notice u/s 148 as non-compliance with Section 151A - notices issued by JAO instead of FAO - HELD THAT - As decided in Jasjit Singh Vs. Union of India and Others 2024 (8) TMI 228 - PUNJAB AND HARYANA HIGH COURT notice u/s 148 after introduction of Finance Act 2021 cannot be issued by Jurisdictional Assessing Officer. The object of introduction of faceless assessment would be defeated if show cause notice u/s 148 is issued by Jurisdictional AO. Decided in favour of assessee.

Summary

The Punjab and Haryana High Court, with Hon'ble Mr. Justice Sanjeev Prakash Sharma and Hon'ble Mr. Justice Sanjay Vashisth, allowed a writ petition, setting aside a notice and orders due to lack of jurisdiction. The court held that circulars cannot override statutory provisions and must only supplement them. The respondents are advised to follow the proper procedure under the Income Tax Act, 1961.