Brahm Roop Singh V. Union of India and Others

CWP/30737/2024

AI Insights

The case involves Brahm Roop Singh as the petitioner against the Union of India and others as respondents, concerning the legality of notices issued under Section 148 of the Income Tax Act, 1961. The petitioner challenged the notices and subsequent proceedings, arguing that they were not conducted in accordance with the statutory provisions, particularly the faceless assessment requirements under Section 144B. The court referenced two previous decisions, Jasjit Singh vs. Union of India and Jatinder Singh Bhangu vs. Union of India, which had similar issues and concluded that such notices and proceedings were contrary to the provisions of the Act. The court's decision reinforced the principle that administrative instructions cannot override statutory laws, especially those with financial implications.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 698041 (HC-MISC)
• Appeal Type: Others
• Pronouncement Date: 14-11-2024
• 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: RANVIJAYSINGH; URVASHI DHUGGA
• Assessee Lawyers: ANURAG SHARMA
• Keywords: Circulars; Faceless assessment; Financial Implications; Jurisdiction; Statutory provisions
• Section: 148; 119; 144B; 120

Judgement Text

"CWP-30737-2024 121 IN THE HIGH COURT OF PUNJAB AND HARYANA AT BRAHM ROOP SINGH UNION OF INDIA AND OTHERS CORAM: HON’BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON’BLE MR. JUSTICE Present: Mr. Mr. Ranvijay Singh, Sr. Standing Counsel Ms. Urvashi Dhugga, for the SANJEEV PRAKASH SHARMA, J.(Oral) 1. Notice of motion. 2. Mr. Ranvijay Singh Sr. Standing Counsel 3. All the 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 and others held as under: 2024 (O&M) Page 1 of 3 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH BRAHM ROOP SINGH Vs. UNION OF INDIA AND OTHERS **** HON’BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON’BLE MR. JUSTICE SANJAY VASHISTH **** Mr. Anurag Sharma, Advocate for the petitioner. Mr. Ranvijay Singh, Sr. Standing Counsel Ms. Urvashi Dhugga, Sr. Standing Counsel for the respondents/Revenue. **** SANJEEV PRAKASH SHARMA, J.(Oral) Notice of motion. Mr. Ranvijay Singh, Sr. Standing Counsel Sr. Standing Counsel accept notice on behalf of 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 and others, decided on 19.07.2024. This Court in held as under: IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CWP-30737-2024 (O&M) Date of Decision: 14.11.2024 . . . . Petitioner . . . . Respondents HON’BLE MR. JUSTICE SANJEEV PRAKASH SHARMA SANJAY VASHISTH , Advocate for the petitioner. Mr. Ranvijay Singh, Sr. Standing Counsel and Standing Counsel SANJEEV PRAKASH SHARMA, J.(Oral) Sr. Standing Counsel, and Ms. Urvashi Dhugga, notice on behalf of respondent/Revenue. 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 , decided on 19.07.2024. This Court in Jasjit Singh (supra) (O&M) .2024 Petitioner s and Ms. Urvashi Dhugga, that the issue involved in the present CWP , CWP No.15745 of 2024 titled as Jatinder Singh Bhangu vs. Union of India (supra) MOHIT GOYAL 2024.11.18 14:50 I attest to the accuracy and integrity of this document CWP-30737-2024 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 co 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 m 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 dist suggested by the learned counsel for the revenue from what has already been held by the Coordinate Bench. Coordinate Bench (supra), notices issued by the JAO under Section 148 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 28.02.20 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 required to be followed strictly and mandatorily. By exercising the powers co 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 m 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. 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 17. In view of the aforesaid discussion, there is inguish 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 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 23, 16.03.2023, 20.03.2024 and 30.03.2023 and order dated 30.03.2023, are set aside MOHIT GOYAL 2024.11.18 14:50 I attest to the accuracy and integrity of this document CWP-30737-2024 at liberty to follow the procedure as laid down under the Act, 1961 and proceed accordingly, if so interim order passed by the Court shall stand merged with the present order.” 4. 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. 5. All pending applications also stand disposed of accordingly. November 14, 2024 Mohit goyal 1. Whether speaking/reasoned? 2. 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 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 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 30.08.2024 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 .2024 issued under Section 148 of the Income Tax Act, 1961 by cer as well as the consequential MOHIT GOYAL 2024.11.18 14:50 I attest to the accuracy and integrity of this document "