INDER KUMAR V. INCOME TAX OFFICER AND OTHERS

CWP/17694/2024

AI Insights

The case involves a series of writ petitions challenging the notices and orders issued by the Jurisdictional Assessing Officer under Section 148 of the Income Tax Act, 1961. The petitioners argued that these actions were unjustified and not in accordance with the statutory provisions, particularly highlighting the lack of adherence to the faceless assessment procedure mandated under Section 144B of the Act. The High Court of Punjab and Haryana, after reviewing the precedents and statutory provisions, agreed with the petitioners and set aside the notices and orders, emphasizing that circulars and instructions cannot override statutory provisions and must be used only for supplementing and implementing them.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 680173 (HC-CHANDIGARH)
• Appeal Type: Others
• Pronouncement Date: 29-07-2024
• 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: B M MONGA; ROHIT KAURA; RAJIV SHARMA
• Keywords: Circulars; Faceless assessment; Instructions; Jurisdiction; Statutory provisions
• Section: 148; 119; 144B; 120

Judgement Text

" 121 IN THE HIGH COURT OF PUNJAB AND HARYANA AT INDER KUMAR INCOME TAX OFFICER, WARD CORAM: HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON'BLE MR. JUSTICE Present: Mr. B.M. Monga, Advocate, Mr. Rohit Kaura, Advocate and Mr. Rajiv Sharma, Advocate for the petitioner(s). Ms. Gauri Neo Rampal, Senior Standing Counsel, for the **** SANJEEV PRAKASH SHARMA, J. 1. Notice of motion. 2. Ms. Gauri Neo Rampal, Senior Standing on behalf of the respondents. 3. Learned counsel for both the sides are raised in these connected Court vide order which the lead case is India and Other jurisdictional Assessing Officer 4. The Court has passed the following order “14 15 16 Coordinate Bench and hold that such circular or instructions by IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CWP-176 Date of Decision: INDER KUMAR V/s. INCOME TAX OFFICER, WARD-1, SIRSA AND OTHERS HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON'BLE MR. JUSTICE SANJAY VASHISTH Mr. B.M. Monga, Advocate, Mr. Rohit Kaura, Advocate and Mr. Rajiv Sharma, Advocate for the petitioner(s). Ms. Gauri Neo Rampal, Senior Standing Counsel, for the respondents. ***** SANJEEV PRAKASH SHARMA, J. (Oral) Notice of motion. Ms. Gauri Neo Rampal, Senior Standing on behalf of the respondents. Learned counsel for both the sides are these connected Writ Petitions stands f vide order dated 29.07.2024 passed in a bunch of Writ Peti which the lead case is CWP-21509-2023 titled as and Others, 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 16. We are in agreement with the view taken by the Coordinate Bench and hold that such circular or instructions by IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 17694-2024 (O&M) Date of Decision:29.07.2024 ..…...Petitioners (s) V/s. AND OTHERS …......Respondent(s) HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA SANJAY VASHISTH Mr. Rohit Kaura, Advocate and Mr. Rajiv Sharma, Advocate 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 Writ Petitions stands finally adjudicated by this in a bunch of Writ Petitions in titled as Jasjit Singh Vs. Union of this Court has held the notice issued by the unjustified. The Court has passed the following order:- We are in agreement with the view taken by the Coordinate Bench and hold that such circular or instructions by ) Counsel, accepts notice that the issue adjudicated by this in nion of this Court has held the notice issued by the Suresh Kumar 2024.08.03 10:37 I attest to the accuracy and integrity of this document CWP-17694-2024 (O&M) the Board could not have been issued to override statutory provisions or to make them otiose or obsolete. Leg 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 supplem implementation. 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 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 Se 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. follow the procedure as laid down under the Act, 1961 and proceed accordingly, if so advised. 2024 (O&M) Page 2 of 3 the Board could not have been issued to override statutory provisions or to make them otiose or obsolete. Leg 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 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 Se 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, if so advised. 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 enting 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. revenue would be, however, at liberty to follow the procedure as laid down under the Act, 1961 and Suresh Kumar 2024.08.03 10:37 I attest to the accuracy and integrity of this document CWP-17694-2024 (O&M) 20. passed by the Court shall stand merged with the present 21. 22. 5. In view of the above, we allow terms. Accordingly, 6. Pending applications, if any, shall stand disposed of accordingly. July 29, 2024 Ess Kay Whether speaking / reasoned Whether Reportable 2024 (O&M) Page 3 of 3 20. All the writ petitions are allowed. The interim order passed by the Court shall stand merged with the present 21. xxx xxx xxxx 22. xxx xxx xxxx” In view of the above, we allow this Accordingly, order/notice dated 15.04.2024 ar Pending applications, if any, shall stand disposed of accordingly. [SANJEEV 2024 [SANJAY VASHISTH Whether speaking / reasoned : Yes Whether Reportable : Yes 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 order/notice dated 15.04.2024 are set 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 Pending applications, if any, shall stand disposed of accordingly. Suresh Kumar 2024.08.03 10:37 I attest to the accuracy and integrity of this document "