JAGMOHAN SINGH PANAICH V. INCOME TAX OFFICER AND ORS

CWP/25953/2024

AI Insights

The case involves a challenge to the notices and orders issued by the Income Tax Department under Section 148 of the Income Tax Act, 1961, which were found to be contrary to the provisions of the Act as they were not based on faceless assessments as required under Section 144B. The petitioners argued that the circulars and instructions issued by the Board were being used to override statutory provisions, which led to confusion and hardship for the assessees. The court referenced previous decisions in similar cases, particularly the Jasjit Singh vs. Union of India and Jatinder Singh Bhangu vs. Union of India, where it was held that such circulars could not make statutory provisions obsolete.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 748757 (HC-MISC)
• Appeal Type: Others
• Pronouncement Date: 04-10-2024
• 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: YOGESH PUTNEY
• Assessee Lawyers: NIKHIL GOYAL; DEWANGANA CHHILLAR
• Keywords: Circulars; Faceless assessment; Income Tax; Jurisdiction; Statutory provisions
• Section: 148; 119; 144B; 120

Judgement Text

"115 IN THE HIGH COURT OF PUNJAB AND HARYANA AT Jagmohan Singh Panaich Income Tax Officer CORAM: HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON'BLE MR. JUSTICE Present: Mr. Mr Mr. Yogesh Putney for the **** SANJEEV PRAKASH SHARMA, J. 1. Notice of motion. 2. Mr. Yogesh Putney behalf of the respondent 3. Both the counsel are 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 Be 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 cir instructions by the Board could not have been issued to override statutory provisions or to make them otiose or obsolete. Legislative enactments having financial IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CWP-25953 Date of Decision: Jagmohan Singh Panaich V/s Income Tax Officer and others HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON'BLE MR. JUSTICE ALOK JAIN Mr. Nikhil Goyal, Advocate and Mr. Dewangana Chhillar, Advocate Mr. Yogesh Putney, Senior Standing Counsel for the respondent-Income Tax Department ***** SANJEEV PRAKASH SHARMA, J. (Oral) Notice of motion. Mr. Yogesh Putney, Senior Standing Counsel, behalf of the respondent-Income Tax Department Both the counsel are ad idem 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 Be 2024 titled 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 cir instructions by the Board could not have been issued to override statutory provisions or to make them otiose or obsolete. Legislative enactments having financial IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 25953-2024 (O&M) Date of Decision:04.10.2024 ..…...Petitioner …......Respondents HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA ALOK JAIN , Advocate for the petitioner. , Senior Standing Counsel 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 2024 titled 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 Petitioner ....Respondents notice on that the issue involved in the CWP , CWP No.15745 of , PARUL 2024.10.14 10:37 I attest to the accuracy and authenticity of this document CWP-25953-2024 implications are required to be followed strictly and mandatorily. By exercising the 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 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 u 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 notice 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 ac 20. All the writ petitions are allowed. The interim order passed by the Court shall stand merged with the present order.” 2024 (O&M) Page 2 of 3 implications are required to be followed strictly and mandatorily. By exercising the 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 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 notice 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. 20. All the writ petitions are allowed. The interim order passed by the Court shall stand merged with the present order.” 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. 18. Keeping in view the law laid down by the Coordinate Bench (supra), notices issued by the JAO nder 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 revenue would be, however, at liberty to follow the procedure as laid down under the cordingly, if so advised. 20. All the writ petitions are allowed. The interim order passed by the Court shall stand merged with the PARUL 2024.10.14 10:37 I attest to the accuracy and authenticity of this document CWP-25953-2024 4. Keeping in view above, we aforesaid terms. The observations and order 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 October 04, 2024 Parul Whether speaking / reasoned Whether Reportable 2024 (O&M) Page 3 of 3 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 Assessing Officer u/s 148 dated 28.03.2023 consequential proceedings are set aside. All pending applications also stand disposed of accordingly. [SANJEEV PRAKASH SHARMA 2024 Whether speaking / reasoned : Yes Whether Reportable : Yes allow this Writ Petition in the passed above shall apply mutatis to the present case. Accordingly, notice issued by the Jurisdictional 28.03.2023 (Annexure P-4) and all stand disposed of accordingly. SANJEEV PRAKASH SHARMA] JUDGE [ALOK JAIN] JUDGE Yes / No Yes / No this Writ Petition in the mutatis to the present case. Accordingly, notice issued by the Jurisdictional all PARUL 2024.10.14 10:37 I attest to the accuracy and authenticity of this document "