MALWINDER SINGH SANGARI V. INCOME TAX OFFICER, WARD NO 1, PATHANKOT AND ORS

CWP/18655/2024

AI Insights

The case involves Malwinder Singh Sangari, the petitioner, challenging the notices and orders issued by the Income Tax Officer, Ward-1, Pathankot, under Section 148 of the Income Tax Act, 1961. The petitioner argued that the notices were unjustified and not in accordance with the statutory provisions required for conducting faceless assessments. The court referenced a previous decision in a bunch of writ petitions, including Jasjit Singh vs. Union of India, where it was held that such notices and the proceedings initiated thereafter without conducting faceless assessments were contrary to the provisions of the Act. The court reiterated that instructions and circulars could only supplement statutory provisions, not override them.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 749633 (HC-CHANDIGARH)
• Appeal Type: Others
• Pronouncement Date: 05-08-2024
• Assessment Year: misc
• Other Referred Cases: Jasjit Singh vs. Union of India
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: SAURABH KAPOOR; URVASHI DHUGGA
• Assessee Lawyers: SHUBHENDU BHATTACHARYYA
• Keywords: Circulars and Instructions; Faceless assessment; Jurisdiction; Statutory provisions; Unjustified notice
• Section: 148; 119; 144B; 120

Judgement Text

" 128 IN THE HIGH COURT OF PUNJAB AND HARYANA AT MALWINDER SINGH SANGARI INCOME TAX OFFICER, CORAM: HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON'BLE MR. JUSTICE Present: Mr. for the petitioner(s) Mr. Saurabh Kapoor, Senior Standing Ms. Urvashi Dhugga, Senior Standing Counsel for the respondents. **** SANJEEV PRAKASH SHARMA, J. 1. Notice of motion. 2. Mr. Saurabh Kapoor, Urvashi Dhugga, Senior Standing counsel as she is not available due to bereavement in the family. 3. Learned counsel for both the sides are raised in these connected Court vide order lead case is CWP Others, where Assessing Officer 4. The Court has passed “14 15 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CWP-18655 Date of Decision: MALWINDER SINGH SANGARI V/s. INCOME TAX OFFICER, WARD-1, PATHANKOT AND OTHERS HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON'BLE MR. JUSTICE SANJAY VASHISTH Mr. Shubhendu Bhattacharyya, Advocate, for the petitioner(s). Mr. Saurabh Kapoor, Senior Standing Ms. Urvashi Dhugga, Senior Standing Counsel for the respondents. ***** SANJEEV PRAKASH SHARMA, J. (Oral) Notice of motion. Mr. Saurabh Kapoor, Senior Standing Counsel, Urvashi Dhugga, Senior Standing counsel accepts notice as she is not available due to bereavement in the family. Learned counsel for both the sides are these connected Writ Petitions stands f vide order dated 29.07.2024 in a bunch of Writ Petitions CWP-21509-2023 titled as Jasjit Singh whereby this Court has held the notice issued by the Assessing Officer as unjustified. The Court has passed the following order 14. xxx xxx xxx xxx 15. xxx xxx xxx xxxx IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 18655-2024 (O&M) Date of Decision:05.08.2024 ..…...Petitioners (s) V/s. 1, PATHANKOT AND OTHERS …......Respondent(s) HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA SANJAY VASHISTH Shubhendu Bhattacharyya, Advocate, Mr. Saurabh Kapoor, Senior Standing Counsel for Ms. Urvashi Dhugga, Senior Standing Counsel Senior Standing Counsel, on behalf of Ms. accepts notice for the respondents as she is not available due to bereavement in the family. Learned counsel for both the sides are ad idem that the issue Writ Petitions stands finally adjudicated by this .07.2024 in a bunch of Writ Petitions in which the t Singh Vs. Union of India and this Court has held the notice issued by the Jurisdictional the following order:- ) on behalf of Ms. respondents that the issue adjudicated by this in which the and Jurisdictional Suresh Kumar 2024.08.07 09:20 I attest to the accuracy and integrity of this document CWP-18655-2024 (O&M) 16 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 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 sa 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 implementation. 17. 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. 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 be 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. 2024 (O&M) Page 2 of 3 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 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 sa 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 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. 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 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 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 ew 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 en 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. Suresh Kumar 2024.08.07 09:20 I attest to the accuracy and integrity of this document CWP-18655-2024 (O&M) 19. follow the procedure as laid down under the Act, 1961 and proceed accordingly, if so advised. 20. passed by the Court shall stand merged with the present order. 21. 22. 5. In view of the above, we terms. Accordingly, order/notice dated aside. The other questions raised in the present Writ Petition are not pressed by the learned counsel for the petitioner. Accordingly, the same are as not pressed 6. Pending applications, if any, shall stand disposed of accordingly. August 5, 2024 Ess Kay Whether speaking / reasoned Whether Reportable 2024 (O&M) Page 3 of 3 19. The respondents-revenue would be, however, at 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. 21. xxx xxx xxxx 22. xxx xxx xxxx” In view of the above, we allow this Accordingly, order/notice dated 12.03 The other questions raised in the present Writ Petition are not pressed by the learned counsel for the petitioner. Accordingly, the same are as not pressed. Pending applications, if any, shall stand disposed of accordingly. [SANJEEV PRAKASH 2024 [SANJAY VASHISTH Whether speaking / reasoned : Yes Whether Reportable : Yes revenue would be, however, at liberty to follow the procedure as laid down under the Act, 1961 and All the writ petitions are allowed. The interim order passed by the Court shall stand merged with the present order. this Writ Petition in the aforesaid 12.03.2024 and 29.03.2024 are set The other questions raised in the present Writ Petition are not pressed by the learned counsel for the petitioner. Accordingly, the same are dismissed Pending applications, if any, shall stand disposed of accordingly. SANJEEV PRAKASH SHARMA] JUDGE SANJAY VASHISTH] JUDGE Yes / No Yes / No Writ Petition in the aforesaid are set The other questions raised in the present Writ Petition are not pressed dismissed Pending applications, if any, shall stand disposed of accordingly. Suresh Kumar 2024.08.07 09:20 I attest to the accuracy and integrity of this document "