MEDMARK V. INCOME TAX OFFICER AND OTHERS

CWP/21258/2024

AI Insights

The case involved a challenge to notices and orders issued by the Income Tax Officer under Sections 148 and 144B of the Income Tax Act, 1961. The petitioner contested the jurisdiction and the procedural correctness of these notices and orders. The High Court referenced a previous decision in Jasjit Singh vs. Union of India, which had set a precedent on similar issues. The court found that the procedural lapses and the issuance of notices without conducting faceless assessments as required under Section 144B were contrary to the provisions of the Act. Consequently, the court set aside the notices and orders, emphasizing the primacy of statutory provisions over administrative instructions.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 678464 (HC-MISC)
• Appeal Type: Others
• Pronouncement Date: 29-08-2024
• Assessment Year: misc
• Other Referred Cases: Jasjit Singh vs. Union of India and others
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Applicant
• Court: HIGH COURT
• Department Lawyers: GAURI NEO RAMPAL OPAL
• Assessee Lawyers: B M MONGA; ROHIT KAURA
• Keywords: Circular instructions; Faceless assessment; Jurisdiction; Statutory provisions; Override statutory provisions
• Section: 148; 119; 144B; 120

Judgement Text

"CWP-21258-2024 142 IN THE HIGH COURT OF PUNJAB AND HARYANA AT MEDMARK INCOME TAX OFFICER AND OTHERS CORAM: HON’BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON’BLE MR. JUSTICE Present: Mr Mr. Rohit Kaur for the petitioner. Ms. Gauri Neo for the respondents. SANJEEV PRAKASH SHARMA, J.(Oral) 1. Notice 2. Ms. Gauri Neo Rampal Opal behalf of 3. Both the counsel are petition stands finally adjudicated in view of the judgment passed by this Court in of India and others under: 2024 (O&M) Page 1 of 3 (THROUGH VC) IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Vs. INCOME TAX OFFICER AND OTHERS **** HON’BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON’BLE MR. JUSTICE SANJAY VASHISTH **** Mr. B.M. Monga, Advocate with Mr. Rohit Kaura, Advocate for the petitioner. Ms. Gauri Neo Rampal Opal, Sr. Standing Counsel for the respondents. **** SANJEEV PRAKASH SHARMA, J.(Oral) Notice of motion. Ms. Gauri Neo Rampal Opal, Sr. Standing Counsel behalf of respondents/Revenue. Both the counsel are ad idem that the petition stands finally adjudicated in view of the judgment passed by this Court in CWP No.21509 of 2023 titled as Jasjit Singh vs. Union of India and others, decided on 29.07.2024, wherein this Court held as (THROUGH VC) IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CWP-21258-2024 (O&M) Date of Decision: 29.08.2024 . . . . Petitioner . . . . Respondents HON’BLE MR. JUSTICE SANJEEV PRAKASH SHARMA SANJAY VASHISTH B.M. Monga, Advocate with Rampal Opal, Sr. Standing Counsel SANJEEV PRAKASH SHARMA, J.(Oral) , Sr. Standing Counsel accepts notice on that the issue involved in the present petition stands finally adjudicated in view of the judgment passed by CWP No.21509 of 2023 titled as Jasjit Singh vs. Union , decided on 29.07.2024, wherein this Court held as (O&M) .2024 Petitioner s accepts notice on issue involved in the present petition stands finally adjudicated in view of the judgment passed by CWP No.21509 of 2023 titled as Jasjit Singh vs. Union , decided on 29.07.2024, wherein this Court held as MOHIT GOYAL 2024.08.29 17:13 I attest to the accuracy and integrity of this document CWP-21258-2024 by the Coordinate instructions by the Board could not have override statutory provisions or to make them otiose or obsolete. Legislative enactments having financial followed strictly and mandatorily. By exercising the powers contained 1961 as well as Section 144B (7 & 8), the cannot be allowed to usurp the legal provisions to their own the assessees. It also leaves the taxpayers statutory provisions and no occasion to suggested what has already been held by the Coordinate Bench. Coordinate Bench under Section 148 of the Act, 1961 and the proceedings initiat assessment as envisaged under Section 144B of the Act, 1961, have bee provisions of the Act, 1961 and accordingly notices dated 28.02.2023, 16.03.2023, 20.03.2024 and 30.03.2023 an for want of jurisdiction. at liberty to follow the procedure as laid down under the Act, 1961 and proceed accordingly, if so advised. 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 override statutory provisions or to make them otiose or obsolete. Legislative enactments having financial followed strictly and mandatorily. By exercising the powers contained Sections 119 and 120 of the Act, 1961 as well as Section 144B (7 & 8), the cannot be allowed to usurp the legal provisions to their own satisfaction and convenience causing h the assessees. It also leaves confusion in the minds of the taxpayers instructions and statutory provisions and 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 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 beesn 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. re in agreement with the view taken 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 be followed strictly and mandatorily. By exercising the 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 satisfaction and convenience causing hardship to confusion in the minds of instructions and supplementing the 17. In view of the aforesaid discussion, there is distinguish or take a different view as 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 (supra), notices issued by the JAO under Section 148 of the Act, 1961 and the proceedings ed thereafter without conducting the faceless assessment as envisaged under Section 144B of the n 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 d 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. MOHIT GOYAL 2024.08.29 17:13 I attest to the accuracy and integrity of this document CWP-21258-2024 interim order passed by the Court shall stand merged with the present order.” 4. Keeping in view above, terms. The observations and order passed above shall apply mutandis 26.03.2024, 12.04.2024 5. All pending applications also stand disposed of accordingly. August 29, 2024 Mohit goyal 1. Whether speaking/reasoned? 2. Whether reportable? 2024 (O&M) Page 3 of 3 20. All the writ petitions are al interim order passed by the Court shall stand merged with the present order.” Keeping in view above, we allow this Writ Petition in the aforesaid terms. The observations and order passed above shall apply mutandis to the present case. Accordingly, 26.03.2024, order u/s 148A(d) dated 12 .2024 and consequential proceedings All pending applications also stand disposed of accordingly. (SANJEEV PRAKASH SHARMA , 2024 1. Whether speaking/reasoned? Yes/No 2. Whether reportable? Yes/No 20. All the writ petitions are allowed. The interim order passed by the Court shall stand merged this Writ Petition in the aforesaid terms. The observations and order passed above shall apply mutatis Accordingly, notice u/s 148A(b) dated 12.04.2024, notice u/s 148 dated and consequential proceedings are set aside. All pending applications also stand disposed of accordingly. SANJEEV PRAKASH SHARMA) JUDGE (SANJAY VASHISTH) JUDGE Yes/No Yes/No this Writ Petition in the aforesaid mutatis notice u/s 148A(b) dated notice u/s 148 dated MOHIT GOYAL 2024.08.29 17:13 I attest to the accuracy and integrity of this document "