DAVINDER KAUR V. UNION OF INDIA AND OTHERS

CWP/33553/2024

AI Insights

The case involves a writ petition filed by Davinder Kaur against the Union of India and others, concerning the legality of notices issued under Section 148 of the Income Tax Act, 1961. The petitioner challenged the notices and the subsequent proceedings, arguing that they were not conducted in accordance with the statutory provisions, particularly the faceless assessment process under Section 144B. The court referenced two previous judgments, Jasjit Singh vs. Union of India and Jatinder Singh Bhangu vs. Union of India, which had addressed similar issues. The court found that the notices and proceedings in question were contrary to the provisions of the Act and thus set them aside, allowing the writ petition.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 741258 (HC-MISC)
• Appeal Type: Others
• Pronouncement Date: 12-12-2024
• Assessment Year: misc
• Other Referred Cases: Jasjit Singh vs. Union of India and others, Jatinder Singh Bhangu vs. Union of India
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: SAURABH KAPOOR; PRIDHI SANDHU; MUSKAAN GUPTA
• Assessee Lawyers: RISHAB SINGLA; AAKRITI
• Keywords: Circulars and Instructions; Faceless assessment; Financial Implications; Jurisdiction; Statutory provisions
• Section: 148; 119; 144B; 120

Judgement Text

"CWP-33553-2024 127 IN THE HIGH COURT OF PUNJAB AND HARYANA AT DAVINDER KAUR UNION OF INDIA AND OTHERS CORAM: HON’BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON’BLE MR. JUSTICE Present: Mr Ms. Aakriti, Advocate for the petitioner. M Ms. Pridhi Ms. Muskaan Gupta, Advocate for the SANJEEV PRAKASH SHARMA, J.(Oral) 1. Notice of motion. 2. Mr. Saurabh Kapoor, respondents/Revenue 3. Both 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 2024 (O&M) Page 1 of 3 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH DAVINDER KAUR Vs. UNION OF INDIA AND OTHERS **** HON’BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON’BLE MR. JUSTICE SANJAY VASHISTH **** Mr. Rishab Singla, Advocate with Ms. Aakriti, Advocate for the petitioner. Mr. Saurabh Kapoor, Sr. Standing Counsel Ms. Pridhi Sandhu, Jr. Standing Counsel Ms. Muskaan Gupta, Advocate for the respondents/Revenue. **** SANJEEV PRAKASH SHARMA, J.(Oral) Notice of motion. r. Saurabh Kapoor, Sr. Standing Counsel respondents/Revenue. 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 CWP-33553-2024 (O&M) Date of Decision: 12.12.2024 . . . . Petitioner . . . . Respondents HON’BLE MR. JUSTICE SANJEEV PRAKASH SHARMA SANJAY VASHISTH with Sr. Standing Counsel with r. Standing Counsel SANJEEV PRAKASH SHARMA, J.(Oral) Sr. Standing Counsel accepts notice on behalf of 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 (O&M) .2024 Petitioner . . . Respondents notice on behalf of that the issue involved in the present CWP , CWP No.15745 of 2024 titled as Jatinder Singh Bhangu vs. Union of India MOHIT GOYAL 2024.12.12 17:27 I attest to the accuracy and integrity of this document CWP-33553-2024 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 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 2024 (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 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 , 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 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 (supra) MOHIT GOYAL 2024.12.12 17:27 I attest to the accuracy and integrity of this document CWP-33553-2024 30.03.2023 and order dated 30.03.2023, are set aside for want of jurisdiction. 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. December 12, 2024 Mohit goyal 1. Whether speaking/reasoned? 2. Whether reportable? 2024 (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 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 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 27.03.2024 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 27.03.2024 issued under Section 148 of the Income Tax Act, 1961 by cer as well as the consequential MOHIT GOYAL 2024.12.12 17:27 I attest to the accuracy and integrity of this document "