M/S Shiv Enterprises V. Union of India and Others

CWP/9505/2023

AI Insights

The case involves M/S Shiv Enterprises challenging notices issued by the Jurisdictional Assessing Officer under Section 148 of the Income Tax Act, 1961, during the faceless assessment regime. The petitioner argued that the notices were issued without conducting the faceless assessment as required under Section 144B of the Act. The court referenced similar cases, Jasjit Singh vs. Union of India and Jatinder Singh Bhangu vs. Union of India, where it was held that such notices and proceedings were not in accordance with the statutory provisions. The court concluded that the instructions and circulars issued could not override the statutory requirements and that the authorities must adhere strictly to the legislative enactments.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 802099 (HC-MISC)
• Appeal Type: Others
• Pronouncement Date: 23-09-2024
• 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: GAURI NEO RAMPAL
• Assessee Lawyers: AMBIKA
• Keywords: Assessment; Faceless regime; Income Tax; Jurisdictional Assessing Officer; Notice
• Section: 148; 119; 144B; 120

Judgement Text

"CWP-9505-2023 106 IN THE HIGH COURT OF PUNJAB AND HARYANA AT M/S SHIV ENTERPRISES UNION OF INDIA AND OTHERS CORAM: HON’BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON’BLE MR. JUSTICE Present: Ms. Ambika, Advocate for Mr. Sandeep Goyal Ms. Gauri Neo Rampal, for the respondents. SANJEEV PRAKASH SHARMA, J.(Oral) 1. Amendment application bearing No. moved raising additional grounds pointing out that issue involved in the present case also includ Jurisdictional Assessing Officer under section 148 of Income Tax Act, 1961 during the Faceless Regime. 2. Learned counsel submits 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 2023 (O&M) Page 1 of 3 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH M/S SHIV ENTERPRISES Vs. UNION OF INDIA AND OTHERS **** HON’BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON’BLE MR. JUSTICE SANJAY VASHISTH **** Ms. Ambika, Advocate for Mr. Sandeep Goyal, Advocate for the petitioner. Ms. Gauri Neo Rampal, Sr. Standing Counsel (through VC) for the respondents. **** SANJEEV PRAKASH SHARMA, J.(Oral) Amendment application bearing No.CM moved raising additional grounds pointing out that issue involved in the present case also includes the assailing of the notice issued by the Jurisdictional Assessing Officer under section 148 of Income Tax Act, 1961 during the Faceless Regime. Learned counsel submits 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 CM-15554-CWP-2024 in/and CWP-9505-2023 (O&M) Date of Decision: 23.09.2024 . . . . Petitioner . . . . Respondents HON’BLE MR. JUSTICE SANJEEV PRAKASH SHARMA SANJAY VASHISTH Advocate for the petitioner. Sr. Standing Counsel (through VC) SANJEEV PRAKASH SHARMA, J.(Oral) CM-15554-CWP-2024 has been moved raising additional grounds pointing out that issue involved in es the assailing of the notice issued by the Jurisdictional Assessing Officer under section 148 of Income Tax Act, that the issue involved in the present petition 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 in/and (O&M) .2024 Petitioner . . . . Respondents has been moved raising additional grounds pointing out that issue involved in es the assailing of the notice issued by the Jurisdictional Assessing Officer under section 148 of Income Tax Act, that the issue involved in the present petition CWP , CWP No.15745 of 2024 titled as Jatinder Singh Bhangu vs. Union of India MOHIT GOYAL 2024.09.24 11:23 I attest to the accuracy and integrity of this document CWP-9505-2023 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 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 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 onl supplementing the statutory provisions and for their implementation. no occasion to distinguish or take a different view as suggested by the learned counsel for the revenue from what ha 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 A provisions of the Act, 1961 and accordingly notices dated 28.02.2023, 16.03.2023, 20.03.2024 and 2023 (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 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 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 onl 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 .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 no occasion to distinguish or take a different view as suggested by the learned counsel for the revenue from s 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 ct, 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 (supra) MOHIT GOYAL 2024.09.24 11:23 I attest to the accuracy and integrity of this document CWP-9505-2023 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 advised. interim order passed by the Court shall stand merged with the present order.” 3. Learned was not taken, however, the issue also arises in the present case as above. 4. Keeping in view above amendment application bearing No. main case today itself on merits and aforesaid terms. The observations and order passed above shall apply mutatis mutandis JAO under Section 148 proceedings 5. All pending applications also stand disposed of accordingly. September 23 Mohit goyal 1. Whether speaking/reasoned? 2. Whether reportable? 2023 (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 wou 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.” Learned counsel for the Revenue submits that originally the argument was not taken, however, the issue also arises in the present case as Keeping in view above submissions amendment application bearing No.CM main case today itself on merits and aforesaid terms. The observations and order passed above shall apply mutatis mutandis to the present case. under Section 148 dated 07.04.2023 proceedings initiated on the basis of said notice 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 counsel for the Revenue submits that originally the argument was not taken, however, the issue also arises in the present case as submissions, we accordingly allow this CM-15554-CWP-2024; take up the main case today itself on merits and allow this Writ Petition in the aforesaid terms. The observations and order passed above shall apply Accordingly, notice issued by .2023 as well as consequential initiated on the basis of said notice are quashed. All pending applications also stand disposed of accordingly. SANJEEV PRAKASH SHARMA) JUDGE (SANJAY VASHISTH) JUDGE Yes/No Yes/No counsel for the Revenue submits that originally the argument was not taken, however, the issue also arises in the present case as accordingly allow this p the this Writ Petition in the aforesaid terms. The observations and order passed above shall apply issued by consequential MOHIT GOYAL 2024.09.24 11:23 I attest to the accuracy and integrity of this document "