MAHINDER SINGH V. INCOME TAX OFFICER, WARD MOHALI 1

CWP/22803/2024

AI Insights

The case involves a challenge to the notices and orders issued by the Income Tax Officer under Section 148 of the Income Tax Act, 1961, which were found to be contrary to the provisions of the Act as they did not follow the faceless assessment process mandated under Section 144B. The petitioners argued that the procedural requirements set by the statute were not adhered to, leading to arbitrary actions by the tax authorities. The court referenced previous judgments 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 administrative instructions cannot override statutory provisions.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 762030 (HC-MISC)
• Appeal Type: Others
• Pronouncement Date: 09-09-2024
• 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: DHRUV MITTAL; ROCHAK SINGLA
• Keywords: Faceless assessment; Financial Implications; Income Tax; Jurisdiction; Statutory provisions
• Section: 148; 119; 144B; 120

Judgement Text

" 127 IN THE HIGH COURT OF PUNJAB AND HARYANA AT MAHINDER SINGH THE INCOME TAX OFFICER, CORAM: HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON'BLE MR. JUSTICE Present: Mr. Dhruv Mittal and Mr. Rochak Singla, Advocates, for the petitioner. Mr. Yogesh Putney, Senior Standing Counsel, for the respondents **** SANJEEV PRAKASH SHARMA, J. 1. Notice of motion. 2. Mr. behalf of the respondents/Income Tax 3. Both the counsel are 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 Co 2024 titled as Jatinder Singh Bhangu vs. Union of India and others decided on 19.07.2024. This Court in “ Coordinate Bench and hold th 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 exer IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CWP-22803 Date of Decision: MAHINDER SINGH V/s. THE INCOME TAX OFFICER, SAS NAGAR, PUNJAB HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON'BLE MR. JUSTICE SANJAY VASHISTH Mr. Dhruv Mittal and Mr. Rochak Singla, Advocates, for the petitioner. Mr. Yogesh Putney, Senior Standing Counsel, for the respondents-Income Tax Department ***** SANJEEV PRAKASH SHARMA, J. (Oral) Notice of motion. Mr. Yogesh Putney, Senior Standing Counsel, respondents/Income Tax Department. Both the counsel are ad idem 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 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 th 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 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 22803-2024 (O&M) Date of Decision:09.09.2024 ..…...Petitioners (s) V/s. SAS NAGAR, PUNJAB AND OTHERS …......Respondent(s) HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA SANJAY VASHISTH Mr. Dhruv Mittal and Mr. Rochak Singla, Advocates, Mr. Yogesh Putney, Senior Standing Counsel, Income Tax Department , Senior Standing Counsel, accepts notice on 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, ordinate 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 implications are required to be followed strictly and cising the powers contained in ) accepts notice on that the issue involved in the present petition stands finally examined and concluded by this Court in , CWP No.15745 of , Suresh Kumar 2024.09.10 09:36 I attest to the accuracy and integrity of this document CWP-22803-2024 (O&M) 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 leave 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 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 J 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 no 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 procee 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, we aforesaid terms. The observations and order p mutandis to the present case. Accordingly, notice issued by the Jurisdictional 2024 (O&M) Page 2 of 3 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 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 J 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 no 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.” Keeping in view above, we allow aforesaid terms. The observations and order p to the present case. Accordingly, notice issued by the Jurisdictional 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 s 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 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 revenue would be, however, at liberty to follow the procedure as laid down under the d 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 to the present case. Accordingly, notice issued by the Jurisdictional this Writ Petition in the mutatis to the present case. Accordingly, notice issued by the Jurisdictional Suresh Kumar 2024.09.10 09:36 I attest to the accuracy and integrity of this document CWP-22803-2024 (O&M) Assessing Officer 30.03.2024 under Section 148A(d) Section 148 and c 5. All pending applications also stand disposed of accordingly. September 9, Ess Kay Whether speaking / reasoned Whether Reportable 2024 (O&M) Page 3 of 3 Assessing Officer under Section 148A(b) 30.03.2024 under Section 148A(d) and notice dated 30.03.2024 under 148 and consequential proceedings are set aside. All pending applications also stand disposed of accordingly. [SANJEEV PRAKASH SHARMA , 2024 [SANJAY VASHISTH Whether speaking / reasoned : Yes Whether Reportable : Yes dated 21.02.2024, order dated notice dated 30.03.2024 under onsequential proceedings are set aside. All pending applications also stand disposed of accordingly. SANJEEV PRAKASH SHARMA] JUDGE SANJAY VASHISTH] JUDGE Yes / No Yes / No , order dated notice dated 30.03.2024 under Suresh Kumar 2024.09.10 09:36 I attest to the accuracy and integrity of this document "