Faceless reassessment procedure cannot be bypassed by circulars; notice and consequential proceedings were held without jurisdiction.

Administrative circulars cannot override mandatory statutory procedure under the Income-tax Act, 1961. The High Court reiterated that the powers under Sections 119, 120 and 144B cannot be used to bypass the faceless assessment framework, and that reassessment action initiated through a Section 148 notice without following the prescribed faceless procedure is without jurisdiction. On that basis, the impugned notice and consequential proceedings were invalid and were quashed, with liberty reserved to proceed in accordance with the statutory procedure.

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Issues: Whether the notice issued by the jurisdictional Assessing Officer and the subsequent proceedings were valid in law without conducting the faceless assessment contemplated under the Income-tax Act, 1961.

Analysis: The Court followed the earlier view that circulars or instructions cannot override statutory provisions or render them otiose. It held that the powers under Sections 119, 120 and 144B of the Income-tax Act, 1961 cannot be used to bypass the mandatory statutory procedure. Notices issued under Section 148 and proceedings initiated without conducting the faceless assessment under Section 144B were found to be contrary to the Act and without jurisdiction.

Conclusion: The impugned notice and consequential proceedings were invalid and liable to be set aside.

Final Conclusion: The writ petition succeeded, and the challenged notice and orders were quashed, with liberty reserved to proceed in accordance with the statutory procedure under the Income-tax Act, 1961.

Ratio Decidendi: Administrative circulars cannot override mandatory statutory provisions, and reassessment action taken in breach of the prescribed faceless procedure is without jurisdiction.

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