JAGJIT SINGH V. INCOME TAX OFFICER AND OTHERS

CWP/26061/2024

AI Insights

The case involves multiple writ petitions challenging the notices and orders issued by the Income Tax Department under Section 148 of the Income Tax Act, 1961. The petitioners argued that these actions were taken without following the proper procedures as mandated under Section 144B, which pertains to faceless assessments. The court referenced previous decisions in similar cases, particularly the Coordinate Bench's decisions in Jasjit Singh vs. Union of India and Jatinder Singh Bhangu vs. Union of India, which held that such departmental circulars cannot override statutory provisions. The court's decision reinforced the principle that legislative enactments must be followed strictly and cannot be made obsolete by administrative instructions.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 748746 (HC-CHANDIGARH)
• Appeal Type: Others
• Pronouncement Date: 04-10-2024
• Assessment Year: misc
• Other Referred Cases: Jasjit Singh vs. Union of India, 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
• Assessee Lawyers: NIKHIL GOYAL; DEWANGANA CHHILLAR
• Keywords: Circulars; Faceless assessment; Income Tax; Jurisdiction; Statutory provisions
• Section: 148; 119; 144B; 120

Judgement Text

" 163 IN THE HIGH COURT OF PUNJAB AND HARYANA AT JAGJIT SINGH INCOME TAX OFFICER WARD CORAM: HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON'BLE MR. JUSTICE Present: Mr. Ms. Dewangana Chhillar Mr. Ms. Pridhi Sandhu, Jr. Standing Counsel, for the respondent **** SANJEEV PRAKASH SHARMA, J. 1. Notice of motion. 2. Mr. on behalf of the respondent 3. Learned counsel for all the parties involved in the present petition stands finally examined and concluded by this Court in India and others CWP No.15745 of 2024 titled as Jatinder Singh Bhangu vs. Union of India and others, decided on 19.07.2024. This Court in under: “ 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 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CWP-2 Date of Decision: JAGJIT SINGH V/s. INCOME TAX OFFICER WARD-3, PATIALA, AND OTHERS HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON'BLE MR. JUSTICE ALOK JAIN Mr. Nikhil Goyal, Advocate and Ms. Dewangana Chhillar, Advocate Mr. Saurabh Kapoor, Senior Standing Counsel, Ms. Pridhi Sandhu, Jr. Standing Counsel, for the respondent-Income Tax Department ***** SANJEEV PRAKASH SHARMA, J. (Oral) Notice of motion. Mr. Saurabh Kapoor, Senior Standing Counsel, accepts on behalf of the respondent-Income Tax Department. Learned counsel for all the parties involved in the present petition stands finally examined and concluded by CWP No.21509 of 2023 titled as Jasjit Singh vs. U 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 , decided on 19.07.2024. This Court in “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 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 26061-2024 (O&M) Date of Decision:04.10.2024 ..…...Petitioners (s) V/s. PATIALA, AND OTHERS …......Respondent(s) HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA ALOK JAIN and , Advocate for the petitioner. , Senior Standing Counsel, and Ms. Pridhi Sandhu, Jr. Standing Counsel, Income Tax Department , Senior Standing Counsel, accepts notice Income Tax Department. Learned counsel for all the parties are ad idem that the issue involved in the present petition stands finally examined and concluded by CWP No.21509 of 2023 titled as Jasjit Singh vs. Union of , 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 , decided on 19.07.2024. This Court in Jasjit Singh (supra) held as 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 ) ice that the issue involved in the present petition stands finally examined and concluded by nion of , 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 (supra) held as Suresh Kumar 2024.10.14 10:46 I attest to the accuracy and integrity of this document CWP-26061-2024 (O&M) 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 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, aforesaid terms. The observations and order passed above shall apply 2024 (O&M) Page 2 of 3 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 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 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 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 this Writ Petition in the mutatis Suresh Kumar 2024.10.14 10:46 I attest to the accuracy and integrity of this document CWP-26061-2024 (O&M) 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 disposed of accordingly. October 4, 2024 Ess Kay Whether speaking / reasoned Whether Reportable 2024 (O&M) Page 3 of 3 to the present case. Accordingly, notice issued by the Jurisdictional Assessing Officer u/s 148 dated 28.03.2024 consequential proceedings are set aside. All pending applications also stand disposed of accordingly. [SANJEEV PRAKASH SHARMA 2024 Whether speaking / reasoned : Yes Reportable : Yes to the present case. Accordingly, notice issued by the Jurisdictional .2024 (Annexure P-1) and all All pending applications also stand disposed of accordingly. SANJEEV PRAKASH SHARMA] JUDGE [ALOK JAIN] JUDGE Yes / No Yes / No to the present case. Accordingly, notice issued by the Jurisdictional all Suresh Kumar 2024.10.14 10:46 I attest to the accuracy and integrity of this document "