SAROJ RANI V. INCOME TAX OFFICER

CWP/25954/2024

AI Insights

The case involves a challenge to the notices and orders issued by the Jurisdictional Assessing Officer 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 assessment as required under Section 144B. The petitioners argued that the circulars and instructions issued by the Board should not override statutory provisions. The court referenced previous decisions in similar cases, particularly the Jasjit Singh and Jatinder Singh Bhangu cases, which held that such circulars and instructions could not make statutory provisions obsolete or otiose. The court concluded that the statutory provisions must be followed strictly and mandatorily, and any circulars or instructions should only serve to supplement these provisions.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 748771 (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: Applicant
• Court: HIGH COURT
• Department Lawyers: GAURI RAMPAL
• Assessee Lawyers: VISHAV GUPTA; MAMTA GUPTA
• Keywords: Circulars; Faceless assessment; Income Tax; Instructions; Jurisdiction; Statutory provisions
• Section: 148; 119; 144B; 120

Judgement Text

"116 IN THE HIGH COURT OF PUNJAB AND HARYANA AT Saroj Rani Income Tax Officer CORAM: HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON'BLE MR. JUSTICE Present: Mr. Ms. Mamta Gupta Ms. for the **** SANJEEV PRAKASH SHARMA, J. 1. Notice of motion. 2. Ms. Gauri Neo Rampal 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 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 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-259 Date of Decision: V/s Income Tax Officer and others HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON'BLE MR. JUSTICE ALOK JAIN Mr. Vishav Bharti Gupta, Advocate and Ms. Mamta Gupta, Advocate for the petitioner Ms. Gauri Neo Rampal, Senior Standing Counsel for the respondent-Income Tax Department ***** SANJEEV PRAKASH SHARMA, J. (Oral) Notice of motion. Ms. Gauri Neo Rampal, 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 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 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 25954-2024 (O&M) Date of Decision:04.10.2024 ..…...Petitioner …......Respondents HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA ALOK JAIN , Advocate and for the petitioner. , Senior Standing Counsel 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 obsolete. Legislative enactments having financial 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-25954-2024 implications are required to be followed strictly and mandatorily. By exercising t 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 confus 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 occa 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 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 da 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 accord 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 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 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 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 he 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 ion 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 sion 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 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 ted 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 ingly, 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-25954-2024 4. Keeping in view above, we aforesaid terms. The observations and order pas 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 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 pas to the present case. Accordingly, notice issued by the Jurisdictional Assessing Officer u/s 148 dated 27.03.2024 consequential proceedings are set aside. All pending applications also stand [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-1) 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 "