ANUJ BANSAL V. INCOME TAX OFFICER

CWP/18529/2024

AI Insights

The case involves a series of writ petitions challenging notices issued by the Income Tax Officer under Section 148 of the Income Tax Act, 1961. The petitioners argued that the notices were unjustified and not in accordance with the statutory provisions, particularly highlighting the lack of faceless assessment as mandated by Section 144B. The court referenced a previous decision in a bunch of writ petitions, including the lead case of Jasjit Singh vs. Union of India, which had set a precedent that such notices and proceedings without faceless assessment are invalid. The court's decision reinforced the principle that administrative instructions cannot override statutory law, especially in matters with financial implications.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 680206 (HC-MISC)
• Appeal Type: Others
• Pronouncement Date: 05-08-2024
• Assessment Year: misc
• Other Referred Cases: Jasjit Singh vs. Union of India
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: GAURI NEO RAMPAL
• Assessee Lawyers: ROHIT KAURA; RAJIV SHARMA
• Keywords: Circulars and Instructions; Faceless assessment; Jurisdiction; Statutory provisions; Unjustified notice
• Section: 148; 119; 144B; 120

Judgement Text

" 124 IN THE HIGH COURT OF PUNJAB AND HARYANA AT ANUJ BANSAL INCOME TAX OFFICER, WARD CORAM: HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON'BLE MR. JUSTICE Present: Mr. Mr. Rohit Kaura, Advocate and Mr. Rajiv Sharma, Advocate for the petitioner. Ms. Gauri Neo Rampal, Senior Standing Counsel, for the respondents. **** SANJEEV PRAKASH SHARMA, J. 1. Notice of motion. 2. Ms. Gauri Neo Rampal, Senior Standing Counsel, on behalf of the respondents. 3. Learned counsel for both the sides are raised in these connected Writ Petitions stands finally adjudicated by this Court vide order dated 29.07.2024 in a bunch of Writ Petitions in which the lead case is CWP Others, whereby this Court has held the notice issued by the jurisdictional Assessing Officer as unjustified. 4. The Court has passed the following order: “14 15 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CWP-18 Date of Decision: ANUJ BANSAL V/s. INCOME TAX OFFICER, WARD-1, KAITHAL HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON'BLE MR. JUSTICE SANJAY VASHISTH Mr. B.M. Monga, Advocate, with Mr. Rohit Kaura, Advocate and Mr. Rajiv Sharma, Advocate for the petitioner. Ms. Gauri Neo Rampal, Senior Standing Counsel, for the respondents. ***** SANJEEV PRAKASH SHARMA, J. (Oral) Notice of motion. Ms. Gauri Neo Rampal, Senior Standing Counsel, the respondents. Learned counsel for both the sides are raised in these connected Writ Petitions stands finally adjudicated by this Court vide order dated 29.07.2024 in a bunch of Writ Petitions in which the CWP-21509-2023 titled as Jasjit Singh whereby this Court has held the notice issued by the jurisdictional Assessing Officer as unjustified. The Court has passed the following order: 14 xxx xxx xxx xxx 15 xxx xxx xxx xxxx IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 18529-2024 (O&M) Date of Decision:05.08.2024 ..…...Petitioners (s) V/s. KAITHAL AND OTHERS …......Respondent(s) HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA SANJAY VASHISTH with Mr. Rajiv Sharma, Advocate for the petitioner. Ms. Gauri Neo Rampal, Senior Standing Counsel, Ms. Gauri Neo Rampal, Senior Standing Counsel, accepts notice Learned counsel for both the sides are ad idem that the issue raised in these connected Writ Petitions stands finally adjudicated by this Court vide order dated 29.07.2024 in a bunch of Writ Petitions in which the Jasjit Singh Vs. Union of India and whereby this Court has held the notice issued by the jurisdictional The Court has passed the following order:- ) accepts notice that the issue raised in these connected Writ Petitions stands finally adjudicated by this Court vide order dated 29.07.2024 in a bunch of Writ Petitions in which the Union of India and whereby this Court has held the notice issued by the jurisdictional Suresh Kumar 2024.08.09 14:50 I attest to the accuracy and integrity of this document CWP-18529-2024 (O&M) 16 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 req 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 conven 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 implementat 17. 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. 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 contra 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. 2024 (O&M) Page 2 of 3 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 req 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 conven 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 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 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 contra 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. ith 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 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 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. Suresh Kumar 2024.08.09 14:50 I attest to the accuracy and integrity of this document CWP-18529-2024 (O&M) 19. follow th proceed accordingly, if so advised. 20. passed by the Court shall stand merged with the present order. 21. 22. 5. In view of the above, we allow terms. The observations and order passed above to the present case. Section 148 of the Income Tax Act, is set 6. Pending applications, if any, shall stand disposed of accordingly. August 5, 2024 Ess Kay Whether speaking / reasoned Whether Reportable 2024 (O&M) Page 3 of 3 19. The respondents-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 present order. 21. xxx xxx xxxx 22. xxx xxx xxxx” In view of the above, we allow this The observations and order passed above to the present case. Accordingly, notice dated 26.03.2024, issued under Section 148 of the Income Tax Act, is set aside. Pending applications, if any, shall stand disposed of accordingly. [SANJEEV PRAKASH SHARMA 2024 [SANJAY VASHISTH Whether speaking / reasoned : Yes Whether Reportable : Yes revenue would be, however, at liberty to e procedure as laid down under the Act, 1961 and All the writ petitions are allowed. The interim order passed by the Court shall stand merged with the present order. this Writ Petition in the aforesaid The observations and order passed above shall apply mutatis mutandis Accordingly, notice dated 26.03.2024, issued under aside. Pending applications, if any, shall stand disposed of accordingly. SANJEEV PRAKASH SHARMA] JUDGE SANJAY VASHISTH] JUDGE Yes / No Yes / No Writ Petition in the aforesaid mutatis mutandis Accordingly, notice dated 26.03.2024, issued under Pending applications, if any, shall stand disposed of accordingly. Suresh Kumar 2024.08.09 14:50 I attest to the accuracy and integrity of this document "