AMIT YADAV V. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 1(1) GURUGRAM

CWP/16813/2023

AI Insights

The case involves Amit Yadav, the petitioner, against the Assistant Commissioner of Income Tax, Circle 1(1) Gurugram, the respondent. The core issue revolved around the legality of notices issued under Section 148 of the Income Tax Act, 1961, which were challenged for not adhering to the statutory provisions required for conducting faceless assessments as mandated under Section 144B. The court referenced previous judgments, particularly the Coordinate Bench's decisions in Jasjit Singh vs. Union of India and Jatinder Singh Bhangu vs. Union of India, which had set precedents on the matter. The court found that the procedures followed in issuing the notices and conducting assessments were contrary to the statutory provisions, leading to confusion and potential hardship for the assessees.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 675361 (HC-MISC)
• Appeal Type: Others
• Pronouncement Date: 06-11-2024
• Assessment Year: misc
• Other Referred Cases: Jasjit Singh vs. Union of India, Jatinder Singh Bhangu vs. Union of India
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: SALIL KAPOOR; VARUN ISSAR
• Assessee Lawyers: GOVIND RANA; VARUN ISSAR
• Keywords: Circulars; Faceless assessment; Income Tax; Instructions; Statutory provisions
• Section: 148; 119; 144B; 120

Judgement Text

"CWP-16813-2023 103+249 IN THE HIGH COURT OF PUNJAB AND HARYANA AT AMIT YADAV ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 1(1) GURUGRAM CORAM: HON’BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON’BLE MR. JUSTICE Present: Mr Mr. Govind Rana, Advocate Mr. Varun Issar, for the SANJEEV PRAKASH SHARMA, J.(Oral) CM-18056-CWP Application for placing on record reply on b is allowed. Registry to place the same at Main case 1. Both the counsel are petition stands finally No.21509 of 2023 titled as Jasjit Singh vs. Union of India and others decided on 29.07.2024, No.15745 of 2024 titled as Jatinder Singh Bhangu vs. Union of India 2023 (O&M) Page 1 of 3 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH AMIT YADAV Vs. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 1(1) GURUGRAM **** HON’BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON’BLE MR. JUSTICE SANJAY VASHISTH **** Mr. Salil Kapoor, Advocate for Mr. Govind Rana, Advocate for the Mr. Varun Issar, Sr. Standing Counsel for the respondent/Revenue. **** SANJEEV PRAKASH SHARMA, J.(Oral) CWP-2024 Application for placing on record reply on b Registry to place the same at appropriate place. Both the counsel are ad idem that the issue involved in the present petition stands finally examined and concluded by this Court in No.21509 of 2023 titled as Jasjit Singh vs. Union of India and others decided on 29.07.2024, and by the Coordinate Bench in No.15745 of 2024 titled as Jatinder Singh Bhangu vs. Union of India IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CM-18056-CWP-2024 in/and CWP-16813-2023 (O&M) Date of Decision: 06.11.2024 . . . . Petitioner ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 1(1) . . . . Respondent HON’BLE MR. JUSTICE SANJEEV PRAKASH SHARMA SANJAY VASHISTH for the petitioner. Sr. Standing Counsel SANJEEV PRAKASH SHARMA, J.(Oral) Application for placing on record reply on behalf of respondents appropriate place. that the issue involved in the present examined and concluded by this Court in CWP No.21509 of 2023 titled as Jasjit Singh vs. Union of India and others, and by the Coordinate Bench in CWP No.15745 of 2024 titled as Jatinder Singh Bhangu vs. Union of India in/and (O&M) .2024 Petitioner . . . . Respondent ehalf of respondents that the issue involved in the present CWP , CWP No.15745 of 2024 titled as Jatinder Singh Bhangu vs. Union of India MOHIT GOYAL 2024.11.08 13:23 I attest to the accuracy and integrity of this document CWP-16813-2023 and others held as under: by the Coordinate Bench and hold that such circular or instructions by the Board could not have been issued to override statutory provisions or to make them otiose or obsolete. Legislative enactments having financial implications are required to be foll mandatorily. By exercising the powers contained in Sections 119 and 120 of the Act, 1961 as well as Section 144B (7 & 8), the authorities cannot be allowed to usurp the legal provisions to their own satisfaction and convenience causing ha assessees. It also leaves confusion in the minds of the taxpayers. In the opinion of this Court, instructions and circulars can be issued only for the purpose of supplementing the statutory provisions and for their implementation. no occasion to distinguish or take a different view as suggested by the learned counsel for the revenue from what has already been held by the Coordinate Bench. Coordinate under Section 148 of the Act, 1961 and the proceedings initiated thereafter without conducting the faceless assessment as envisaged under Section 144B of the Act, 1961, have been found to be contrary to the provisio dated 28.02.2023, 16.03.2023, 20.03.2024 and 2023 (O&M) Page 2 of 3 and others, decided on 19.07.2024. This Court in held as under: “16. We are in agreement with the view tak by the Coordinate Bench and hold that such circular or instructions by the Board could not have been issued to override statutory provisions or to make them otiose or obsolete. Legislative enactments having financial implications are required to be foll mandatorily. By exercising the powers contained in Sections 119 and 120 of the Act, 1961 as well as Section 144B (7 & 8), the authorities cannot be allowed to usurp the legal provisions to their own satisfaction and convenience causing ha assessees. It also leaves confusion in the minds of the taxpayers. In the opinion of this Court, instructions and circulars can be issued only for the purpose of supplementing the statutory provisions and for their implementation. 17. In view of the aforesaid discussion, there is no occasion to distinguish or take a different view as suggested by the learned counsel for the revenue from what has already been held by the Coordinate Bench. 18. Keeping in view the law laid down by the Coordinate Bench (supra), notices issued by the JAO under Section 148 of the Act, 1961 and the proceedings initiated thereafter without conducting the faceless assessment as envisaged under Section 144B of the Act, 1961, have been found to be contrary to the provisions of the Act, 1961 and accordingly notices dated 28.02.2023, 16.03.2023, 20.03.2024 and , decided on 19.07.2024. This Court in Jasjit Singh (supra) We are in agreement with the view taken by the Coordinate Bench and hold that such circular or instructions by the Board could not have been issued to override statutory provisions or to make them otiose or obsolete. Legislative enactments having financial implications are required to be followed strictly and mandatorily. By exercising the powers contained in Sections 119 and 120 of the Act, 1961 as well as Section 144B (7 & 8), the authorities cannot be allowed to usurp the legal provisions to their own satisfaction and convenience causing hardship to the assessees. It also leaves confusion in the minds of the taxpayers. In the opinion of this Court, instructions and circulars can be issued only for the purpose of supplementing the statutory provisions and for their of the aforesaid discussion, there is no occasion to distinguish or take a different view as suggested by the learned counsel for the revenue from what has already been held by the Coordinate Bench. 18. Keeping in view the law laid down by the Bench (supra), notices issued by the JAO under Section 148 of the Act, 1961 and the proceedings initiated thereafter without conducting the faceless assessment as envisaged under Section 144B of the Act, 1961, have been found to be contrary to the ns of the Act, 1961 and accordingly notices dated 28.02.2023, 16.03.2023, 20.03.2024 and (supra) MOHIT GOYAL 2024.11.08 13:23 I attest to the accuracy and integrity of this document CWP-16813-2023 30.03.2023 and order dated 30.03.2023, are set aside for want of jurisdiction. at liberty to follow the procedure as la the Act, 1961 and proceed accordingly, if so advised. interim order passed by the Court shall stand merged with the present order.” 2. Keeping in view above, terms. The observations and order passed above shall apply mutandis issued under Section 148 of the Income Tax Act, 1961 by Jurisdictional Assessing Offi proceedings are set aside. 3. All pending applications also stand disposed of accordingly. November 06, 2024 Mohit goyal 1. Whether speaking/reasoned? 2. Whether reportable? 2023 (O&M) Page 3 of 3 30.03.2023 and order dated 30.03.2023, are set aside for want of jurisdiction. 19. The respondents-revenue would be, however, at liberty to follow the procedure as la the Act, 1961 and proceed accordingly, if so advised. 20. All the writ petitions are allowed. The interim order passed by the Court shall stand merged with the present order.” Keeping in view above, we allow this Writ Petition in the aforesaid terms. The observations and order passed above shall apply mutandis to the present case. Accordingly, issued under Section 148 of the Income Tax Act, 1961 by Jurisdictional Assessing Officer as well as the consequential proceedings are set aside. All pending applications also stand disposed of accordingly. (SANJEEV PRAKASH SHARMA , 2024 1. Whether speaking/reasoned? Yes/No 2. Whether reportable? Yes/No 30.03.2023 and order dated 30.03.2023, are set aside revenue would be, however, at liberty to follow the procedure as laid down under the Act, 1961 and proceed accordingly, if so advised. 20. All the writ petitions are allowed. The interim order passed by the Court shall stand merged this Writ Petition in the aforesaid terms. The observations and order passed above shall apply mutatis Accordingly, notice dated 28.04.2023 issued under Section 148 of the Income Tax Act, 1961 by cer as well as the consequential All pending applications also stand disposed of accordingly. SANJEEV PRAKASH SHARMA) JUDGE (SANJAY VASHISTH) JUDGE Yes/No Yes/No this Writ Petition in the aforesaid mutatis 28.04.2023 issued under Section 148 of the Income Tax Act, 1961 by cer as well as the consequential MOHIT GOYAL 2024.11.08 13:23 I attest to the accuracy and integrity of this document "