Gurpreet Singh Gogia V. Union of India

CWP/23554/2024

AI Insights

The case involves multiple writ petitions challenging the notices and orders issued by the Income Tax Department under Sections 148 and 144B of the Income Tax Act, 1961. The petitioners argued that the circulars and instructions issued by the Department were in conflict with the statutory provisions, leading to confusion and hardship for the assessees. The court referenced previous decisions in similar cases, particularly the Jasjit Singh and Jatinder Singh Bhangu cases, which held that such circulars cannot override statutory provisions. The court's decision reinforced the principle that legislative enactments, especially those with financial implications, must be adhered to strictly.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 700013 (HC-CHANDIGARH)
• Appeal Type: Others
• Pronouncement Date: 16-09-2024
• 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
• Assessee Lawyers: ANURAG SHARMA; KAPISH CHAWLA
• Keywords: Circular instructions; Faceless assessment; Financial Implications; Jurisdiction; Statutory provisions
• Section: 148; 119; 144B; 120

Judgement Text

" 118 IN THE HIGH COURT OF PUNJAB AND HARYANA AT GURPREET SINGH GOGIA UNION OF INDIA CORAM: HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON'BLE MR. JUSTICE Present: Mr. Mr. Mr. Ranvijay Singh, Senior Standing Counsel, for **** SANJEEV PRAKASH SHARMA, J. 1. Notice of motion. 2. M behalf of the respondent 3. Both the counsel are 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 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 finan 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 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CWP-2355 Date of Decision: GURPREET SINGH GOGIA V/s. UNION OF INDIA AND OTHERS HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON'BLE MR. JUSTICE SANJAY VASHISTH Mr. Anurag Sharma, Advocate and Mr. Kapish Chawla, Advocate for the petitioner. Mr. Ranvijay Singh, Senior Standing Counsel, for the respondents/Income Tax Department. ***** SANJEEV PRAKASH SHARMA, J. (Oral) Notice of motion. Mr. Ranvijay Singh, Senior Standing Counsel, the respondent-Income Tax Department Both the counsel are ad idem 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 tled 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 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 finan 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 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 23554-2024 (O&M) Date of Decision:16.09.2024 ..…...Petitioners (s) V/s. ......Respondent(s) HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA SANJAY VASHISTH , Advocate and , Advocate for the petitioner. Mr. Ranvijay Singh, Senior Standing Counsel, the respondents/Income Tax Department. , Senior 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 tled 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 Sections 119 and 120 of the Act, 1961 as well as accepts notice on that the issue involved in the present petition stands finally examined and concluded by this Court in , CWP No.15745 of , Suresh Kumar 2024.09.17 09:22 I attest to the accuracy and integrity of this document CWP-23554-2024 (O&M) Section 144B (7 & 8), the authorities cannot be allowed to usurp the legal provisions to their ow 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 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 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 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 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.” 4. Keeping in view above, w aforesaid terms. The observations and order passed above shall apply mutandis to the present case. Accordingly, notice issued by the Jurisdictional 2024 (O&M) Page 2 of 3 Section 144B (7 & 8), the authorities cannot be allowed to usurp the legal provisions to their ow 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 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, 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.” Keeping in view above, we allow aforesaid terms. The observations and order passed above shall apply to the present case. Accordingly, notice issued by the Jurisdictional 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 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. 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 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 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 issued by the Jurisdictional this Writ Petition in the mutatis to the present case. Accordingly, notice issued by the Jurisdictional Suresh Kumar 2024.09.17 09:22 I attest to the accuracy and integrity of this document CWP-23554-2024 (O&M) Assessing Officer u/s 148 dated consequential proceedings are set aside. 5. All pending applications also stand disposed of accordingly. September 16 Ess Kay Whether speaking / reasoned Whether Reportable 2024 (O&M) Page 3 of 3 Assessing Officer u/s 148 dated 22.03.2024 consequential proceedings are set aside. All pending applications also stand disposed of accordingly. [SANJEEV PRAKASH SHARMA 6, 2024 [SANJAY VASHISTH Whether speaking / reasoned : Yes Reportable : Yes 22.03.2024 (Annexure P-2), and All pending applications also stand disposed of accordingly. SANJEEV PRAKASH SHARMA] JUDGE SANJAY VASHISTH] JUDGE Yes / No Yes / No , and Suresh Kumar 2024.09.17 09:22 I attest to the accuracy and integrity of this document "