ASHOK KUMAR HUF V. PR COMMISSIONER OF INCOME TAX PATIALA AND ANOTHER

CWP/25976/2024

AI Insights

The case involves a dispute between Ashok Kumar HUF and the Principal Commissioner of Income Tax, Patiala, concerning the legality of notices and orders issued under Section 148 of the Income Tax Act, 1961. The petitioner challenged the jurisdiction of the assessing officer in issuing these notices without conducting a faceless assessment as required under Section 144B. The court referenced decisions from similar cases, particularly Jasjit Singh vs. Union of India and Jatinder Singh Bhangu vs. Union of India, where it was held that circulars and instructions cannot override statutory provisions. The court concluded that the procedural requirements under the Act must be strictly followed, and any deviation causing hardship to assessees is not permissible.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 748777 (HC-CHANDIGARH)
• Appeal Type: Others
• Pronouncement Date: 04-10-2024
• 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: PRIDHI SANDHU
• Assessee Lawyers: RISHABH KAPOOR
• Keywords: Circulars; Faceless assessment; Income Tax; Jurisdiction; Statutory provisions
• Section: 148; 119; 144B; 120

Judgement Text

"123 IN THE HIGH COURT OF PUNJAB AND HARYANA AT Ashok Kumar HUF Pr. Commissioner of Income Tax, Patiala CORAM: HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON'BLE MR. JUSTICE Present: Mr. Rishabh Kapoor Ms. for the **** SANJEEV PRAKASH SHARMA, J. 1. Notice of motion. 2. Ms. behalf of the respondent 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 Benc 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 circu instructions by the Board could not have been issued to override statutory provisions or to make them otiose or obsolete. Legislative enactments having financial IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CWP-25976 Date of Decision: Ashok Kumar HUF V/s Pr. Commissioner of Income Tax, Patiala and HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON'BLE MR. JUSTICE ALOK JAIN Mr. Rishabh Kapoor, Advocate for the petitioner Ms. Pridhi Sandhu, Junior Standing Counsel for the respondent-Income Tax Department ***** SANJEEV PRAKASH SHARMA, J. (Oral) Notice of motion. Ms. Pridhi Sandhu, Junior Standing Counsel, behalf of the respondent-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 Benc 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 taken by the Coordinate Bench and hold that such circu instructions by the Board could not have been issued to override statutory provisions or to make them otiose or obsolete. Legislative enactments having financial IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 25976-2024 (O&M) Date of Decision:04.10.2024 ..…...Petitioner and another …......Respondents HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA ALOK JAIN for the petitioner. Standing Counsel Income Tax Department. Standing Counsel, accepts notice on 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 Petitioner ....Respondents notice on that the issue involved in the CWP , CWP No.15745 of , PARUL 2024.10.14 10:37 I attest to the accuracy and authenticity of this document CWP-25976-2024 implications are required to be followed strictly and mandatorily. By exercising the po 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 i 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 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 Sect 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 2 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 laid down under the Act, 1961 and proceed accordingly 20. All the writ petitions are allowed. The interim order passed by the Court shall stand merged with the present order.” 2024 (O&M) Page 2 of 3 implications are required to be followed strictly and mandatorily. By exercising the po 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 i 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 laid down under the Act, 1961 and proceed accordingly 20. All the writ petitions are allowed. The interim order passed by the Court shall stand merged with the present order.” 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 17. In view of the aforesaid discussion, there is no 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 ion 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 8.02.2023, 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 PARUL 2024.10.14 10:37 I attest to the accuracy and authenticity of this document CWP-25976-2024 4. Keeping in view above, we aforesaid terms. The observations and order passed a mutandis to the present case. Accordingly, notice issued by the Jurisdictional Assessing Officer u/s 148 dated consequential proceedings are set aside. 5. All pending applications also stand October 04, 2024 Parul Whether speaking / reasoned Whether Reportable 2024 (O&M) Page 3 of 3 Keeping in view above, we allow aforesaid terms. The observations and order passed a to the present case. Accordingly, notice issued by the Jurisdictional Assessing Officer u/s 148 dated 27.03.2024 consequential proceedings are set aside. All pending applications also stand [SANJEEV PRAKASH SHARMA 2024 Whether speaking / reasoned : Yes Whether Reportable : Yes allow this Writ Petition in the aforesaid terms. The observations and order passed above shall apply mutatis to the present case. Accordingly, notice issued by the Jurisdictional .2024 (Annexure P-2) and all All pending applications also stand disposed of accordingly. SANJEEV PRAKASH SHARMA] JUDGE [ALOK JAIN] JUDGE Yes / No Yes / No this Writ Petition in the mutatis to the present case. Accordingly, notice issued by the Jurisdictional all PARUL 2024.10.14 10:37 I attest to the accuracy and authenticity of this document "