Anju Chadha V. Income Tax Officer, Ward 3(1), Gurgaon

CWP/34807/2024

AI Insights

The case involves a challenge to the notices and orders issued by the Income Tax Department under Section 148 of the Income Tax Act, 1961, which were found to be contrary to the provisions of the Act. The petitioners argued that the circulars and instructions issued by the Board were being used to override statutory provisions, causing confusion and hardship to the assessees. The court referenced previous decisions in similar cases, particularly Jasjit Singh vs. Union of India and Jatinder Singh Bhangu vs. Union of India, which held that such circulars cannot make statutory provisions obsolete. The court concluded that instructions and circulars can only supplement statutory provisions and should not be used to usurp them.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 797327 (HC-MISC)
• Appeal Type: Others
• Pronouncement Date: 20-12-2024
• Assessment Year: misc
• Other Referred Cases: Jasjit Singh vs. Union of India and others, Jatinder Singh Bhangu vs. Union of India and others
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: VARUN ISSAR
• Assessee Lawyers: VAIBHAV KULKARNI
• Keywords: Circulars; Faceless assessment; Financial Implications; Income Tax; Jurisdiction; Statutory provisions
• Section: 148; 119; 144B; 120

Judgement Text

" 112 IN THE HIGH COURT OF PUNJAB AND HARYANA AT ANJU CHADHA INCOME TAX OFFICER, WARD 3(1), CORAM: HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON'BLE MR. JUSTICE Present: Mr. Mr. Varun Issar, Senior Standing Counsel, for the respondent **** SANJEEV PRAKASH SHARMA, J. 1. Notice of motion. 2. Mr. Varun Issar behalf of the respondents/Income Tax Department. 3. Both the counsel are 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 2024 titled as Jatinder Singh Bhangu vs. Union of India and others decided on 19.07.2024. This Court in “ 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 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CWP-34807 Date of Decision: ANJU CHADHA V/s. INCOME TAX OFFICER, WARD 3(1), GURGAON AND ANOTHER HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON'BLE MR. JUSTICE SANJAY VASHISTH Mr. Vaibhav Kulkarni, Advocate Mr. Varun Issar, Senior Standing Counsel, for the respondent-Income Tax Department ***** SANJEEV PRAKASH SHARMA, J. (Oral) Notice of motion. Mr. Varun Issar, Senior Standing Counsel, behalf of the respondents/Income Tax Department. Both the counsel are ad idem 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 2024 titled as Jatinder Singh Bhangu vs. Union of India and others decided on 19.07.2024. This Court in Jasjit Singh “16. We are in agreement with the view tak 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 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 34807-2024 (O&M) Date of Decision:20.12.2024 ..…...Petitioner(s) V/s. GURGAON AND ANOTHER …......Respondent(s) HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA SANJAY VASHISTH , Advocate for the petitioner. Mr. Varun Issar, Senior Standing Counsel, Income Tax Department , Senior Standing Counsel, accepts notice on behalf of the respondents/Income Tax Department. ad idem that the issue involved in the present petition stands finally examined and concluded by this Court in CWP 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 CWP No.15745 of 2024 titled as Jatinder Singh Bhangu vs. Union of India and others, Jasjit Singh (supra) held as under: 16. 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 (s) ) notice on that the issue involved in the CWP , CWP No.15745 of , Suresh Kumar 2025.01.08 13:15 I attest to the accuracy and integrity of this document CWP-34807-2024 (O&M) 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 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 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 30.03.2023 and order dated 30.03.2023, are set aside for want of jurisdiction. 19. The respondents liberty to follow the procedure as la 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.” 4. Keeping in view above, we aforesaid terms. The observations and order passed above shall apply mutandis to the present case. Accordingly, notice 2024 (O&M) Page 2 of 3 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 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 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 aforesaid terms. The observations and order passed above shall apply to the present case. Accordingly, notice 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 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 with the allow this Writ Petition in the aforesaid terms. The observations and order passed above shall apply mutatis to the present case. Accordingly, notice dated 25.04.2024 this Writ Petition in the mutatis .2024 Suresh Kumar 2025.01.08 13:15 I attest to the accuracy and integrity of this document CWP-34807-2024 (O&M) (Annexure P- Income Tax Act, 1961 aside. 5. All pending applications also stand disposed of accordingly. December 20 Ess Kay Whether speaking / reasoned Whether Reportable 2024 (O&M) Page 3 of 3 -4) issued by the Jurisdictional Assessing Officer u/s 148 ax Act, 1961 and all consequential proceedings All pending applications also stand disposed of accordingly. [SANJEEV PRAKASH SHARMA December 20, 2024 [SANJAY VASHISTH Whether speaking / reasoned : Yes Whether Reportable : Yes issued by the Jurisdictional Assessing Officer u/s 148 of the consequential proceedings thereof are set All pending applications also stand disposed of accordingly. SANJEEV PRAKASH SHARMA] JUDGE SANJAY VASHISTH] JUDGE Yes / No Yes / No of the are set Suresh Kumar 2025.01.08 13:15 I attest to the accuracy and integrity of this document "