Mahant Bikram Singh V. Union of India

CWP/25962/2024

AI Insights

The case involves multiple writ petitions challenging the notices issued by the Jurisdictional Assessing Officer under Section 148 of the Income Tax Act, 1961. The petitioners argued that the notices and subsequent proceedings were not conducted as per the faceless assessment procedure outlined under Section 144B of the Act, leading to jurisdictional issues. The court referenced previous decisions in similar cases, particularly Jasjit Singh vs. Union of India and Jatinder Singh Bhangu vs. Union of India, which had set precedents that circulars and instructions by the tax authorities cannot override statutory provisions. The court concluded that the authorities must adhere strictly to the statutory provisions, and any deviation causing confusion or hardship to the assessees is not permissible.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 802040 (HC-CHANDIGARH)
• 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: URVASHI DHUGGA; SAMDESHA KAUR
• Assessee Lawyers: MANPREET KANDA; ROHIT KAPOOR
• Keywords: Circular instructions; Faceless assessment; Financial Implications; Jurisdiction; Statutory provisions
• Section: 148; 119; 144B; 120

Judgement Text

"119 IN THE HIGH COURT OF PUNJAB AND HARYANA AT Mahant Bikram Union of India and CORAM: HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON'BLE MR. JUSTICE Present: Mr. Mr. Rohit Kapoor Ms. Urvashi Dhugga, Senior Ms. Samdesha Kaur, Advocate for the **** SANJEEV PRAKASH SHARMA, J. 1. Notice of motion. 2. Ms. Urvashi Dhugga on 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 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 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CWP-259 Date of Decision: Mahant Bikram Singh V/s Union of India and others HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON'BLE MR. JUSTICE ALOK JAIN Mr. Manpreet Singh Kanda, Advocate and Mr. Rohit Kapoor, Advocate for the petitioner Ms. Urvashi Dhugga, Senior Standing Counsel and Ms. Samdesha Kaur, Advocate for the respondent-Income Tax Department ***** SANJEEV PRAKASH SHARMA, J. (Oral) Notice of motion. Ms. Urvashi Dhugga, Senior Standing Counsel, on 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 Bench in 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 tak 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 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 25962-2024 (O&M) Date of Decision:04.10.2024 ..…...Petitioner …......Respondents HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA ALOK JAIN Manpreet Singh Kanda, Advocate and for the petitioner. Standing Counsel and Income Tax Department. , Senior Standing Counsel, accepts notice 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 Petitioner ....Respondents notice 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-25962-2024 obsolete. Legislative enactments having financial implications are required to be foll 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 ha 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 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 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 provisio 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 la 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.” 2024 (O&M) Page 2 of 3 obsolete. Legislative enactments having financial implications are required to be foll 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 ha 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 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, at liberty to follow the procedure as la 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.” 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 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 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 ns 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 PARUL 2024.10.14 10:37 I attest to the accuracy and authenticity of this document CWP-25962-2024 4. Keeping in view above, we aforesaid terms. The observations and order passed above shall apply 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 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 25.02.2024 ential 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 aforesaid terms. The observations and order passed above shall apply mutatis to the present case. Accordingly, notice issued by the Jurisdictional .2024 (Annexure P-3) and all All pending applications also 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 "