Punjab & Haryana HC sets aside S.148 Notice for Non-Compliance with Faceless Assessment Process

The Punjab & Haryana High Court quashed a Section 148 notice under the Income Tax Act for failing to comply with faceless assessment protocols. The court held that procedural safeguards are integral to ensure fairness and transparency in taxation processes. The petitioner argued that the reassessment notice violated norms under the faceless assessment scheme, which mandates electronic issuance and response to notices. The court emphasized that adherence to statutory procedures is essential to uphold taxpayers' rights and prevent arbitrary actions. Consequently, the notice was set aside, and the case was deemed invalid. Legal experts view this decision as reinforcing procedural adherence within the Income Tax framework. It also highlights the judiciary’s role in safeguarding taxpayer interests against administrative lapses, setting a precedent for similar cases.