HARBANS SINGH V. INCOME TAX OFFICER AND OTHERS

CWP/24962/2024

AI Insights

The case involves a series of writ petitions challenging the notices issued under Section 148 of the Income Tax Act, 1961, by the Jurisdictional Assessing Officer. The petitioners argued that these notices and the subsequent proceedings were not in accordance with the statutory requirements for faceless assessments as mandated by Section 144B of the Act. The court referenced several precedents, including the cases of Jasjit Singh vs. Union of India and Jatinder Singh Bhangu vs. Union of India, which had previously addressed similar issues. The court concluded that the notices were issued without proper jurisdiction and did not comply with the necessary legal framework, leading to their annulment.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 748893 (HC-CHANDIGARH)
• Appeal Type: Others
• Pronouncement Date: 26-09-2024
• Assessment Year: misc
• Other Referred Cases: Jasjit Singh vs. Union of India, Jatinder Singh Bhangu vs. Union of India
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Applicant
• Court: HIGH COURT
• Department Lawyers: GAURI RAMPAL; URVASHI DHUGGA; SAMDESHA KAUR
• Assessee Lawyers: NIKHIL GOYAL
• Keywords: Circulars; Faceless assessment; Jurisdiction; Statutory provisions
• Section: 148; 119; 144B; 120

Judgement Text

" 129 IN THE HIGH COURT OF PUNJAB AND HARYANA AT HARBANS SINGH INCOME TAX OFFICER, CORAM: HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON'BLE MR. JUSTICE Present: Mr. Ms. Gauri Neo Rampal, Senior Standing Counsel for the Ms. Urvashi Dhugga, Senior Standing Counsel, with Ms. Samdesha Kaur, Advocate for respondent No.5 **** SANJEEV PRAKASH SHARMA, J. 1. Notice of motion. 2. Ms. Gauri Neo on behalf of the respondents Standing Counsel accepts notice on behalf of respondent No.5 3. Learned counsel for all the parties involved in the present petition stands finally examined and concluded by this Court in India and others CWP No.15745 of 2024 titled as Jatinder Singh Bhangu and others, decided on 19.07.2024. This Court in under: “ Coordinate Bench and hold that such circular or IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CWP-249 Date of Decision: HARBANS SINGH V/s. INCOME TAX OFFICER, WARD-1, KARNAL HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON'BLE MR. JUSTICE SANJAY VASHISTH (Through Video Conferencing/Hybrid Mode) Mr. Nikhil Goyal, Advocate for the petitioner Ms. Gauri Neo Rampal, Senior Standing Counsel for the respondents No.1 to 4. Ms. Urvashi Dhugga, Senior Standing Counsel, with Ms. Samdesha Kaur, Advocate for respondent No.5 ***** SANJEEV PRAKASH SHARMA, J. (Oral) Notice of motion. Ms. Gauri Neo Rampal, Senior Standing Counsel, on behalf of the respondents No.1 to 4 and Ms. Urvashi Dhugga, Senior Standing Counsel accepts notice on behalf of respondent No.5 Learned counsel for all the parties he 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 , decided on 19.07.2024. This Court in “16. We are in agreement with the view taken by the Coordinate Bench and hold that such circular or IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 24962-2024 (O&M) Date of Decision:26.09.2024 ..…...Petitioners (s) V/s. KARNAL, HARYANA AND OTHERS …......Respondent(s) HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA SANJAY VASHISTH (Through Video Conferencing/Hybrid Mode) for the petitioner. Ms. Gauri Neo Rampal, Senior Standing Counsel Ms. Urvashi Dhugga, Senior Standing Counsel, with Ms. Samdesha Kaur, Advocate for respondent No.5 , Senior Standing Counsel, accepts notice No.1 to 4 and Ms. Urvashi Dhugga, Senior Standing Counsel accepts notice on behalf of respondent No.5. Learned counsel for all the parties are ad idem that the issue he present petition stands finally examined and concluded by CWP No.21509 of 2023 titled as Jasjit Singh vs. Union of , 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 , decided on 19.07.2024. This Court in Jasjit Singh (supra) held as 16. We are in agreement with the view taken by the Coordinate Bench and hold that such circular or ) notice No.1 to 4 and Ms. Urvashi Dhugga, Senior that the issue he present petition stands finally examined and concluded by CWP No.21509 of 2023 titled as Jasjit Singh vs. Union of , decided on 29.07.2024, and by the Coordinate Bench in vs. Union of India (supra) held as Suresh Kumar 2024.09.27 09:20 I attest to the accuracy and integrity of this document CWP-24962-2024 (O&M) instructions by the Board could not have been 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, 19 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 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 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 initiate 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 for want of jurisdiction. 19. The respondents liberty to follow the procedure as laid down under the Act, 1961 and proceed accordingly, if so advised. 20. All the writ petitions are allo order passed by the Court shall stand merged with the present order.” 2024 (O&M) Page 2 of 3 instructions by the Board could not have been 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, 19 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 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 allo order passed by the Court shall stand merged with the present order.” 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 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 17. In view of the aforesaid discussion, there is no occasion to 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 Coordinate Bench (supra), notices issued by the JAO under Section 148 of the Act, 1961 and the d 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 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 Suresh Kumar 2024.09.27 09:20 I attest to the accuracy and integrity of this document CWP-24962-2024 (O&M) 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. September 26 Ess Kay 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 31.08.2024 consequential proceedings are set aside. All pending applications also stand disposed of accordingly. [SANJEEV PRAK 26, 2024 [SANJAY VASHISTH 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-4) and all All pending applications also stand disposed of accordingly. SANJEEV PRAKASH SHARMA] JUDGE SANJAY VASHISTH] JUDGE Yes / No Yes / No this Writ Petition in the mutatis to the present case. Accordingly, notice issued by the Jurisdictional all Suresh Kumar 2024.09.27 09:20 I attest to the accuracy and integrity of this document "