AYESHA KANG V. ASSISTANT COMMISSIONER OF INCOME TAX

CWP/25489/2024

AI Insights

The case involves a challenge to notices issued by the Jurisdictional Assessing Officer under Section 148 of the Income Tax Act, 1961, which were related to the reassessment of income. The petitioner contested the jurisdiction and the procedure followed in issuing these notices. The court referenced previous decisions in similar cases, particularly the Jasjit Singh and Jatinder Singh Bhangu cases, which held that such circulars or instructions could not override statutory provisions. The court concluded that the notices and subsequent proceedings were not conducted in accordance with the statutory requirements, leading to their invalidation.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 748773 (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: YOGESH PUTNEY
• Assessee Lawyers: EKAKSHRA MAHAJAN
• Keywords: Circulars; Faceless assessment; Financial Implications; Jurisdiction; Statutory provisions
• Section: 148; 119; 11; 144B; 120

Judgement Text

"106 IN THE HIGH COURT OF PUNJAB AND HARYANA AT Ayesha Kang Assistant Commissioner of CORAM: HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON'BLE MR. JUSTICE Present: Mr. Mr. Yogesh Putney for the **** SANJEEV PRAKASH SHARMA, J. 1. Notice of motion. 2. Mr. Yogesh Putney 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 Bench in 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 circular or instructions by the Bo override statutory provisions or to make them otiose or IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CWP-25489 Date of Decision: V/s Assistant Commissioner of Income Tax HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON'BLE MR. JUSTICE ALOK JAIN Mr. Ekakshra Mahajan, Advocate Mr. Yogesh Putney, Senior Standing Counsel for the respondent-Income Tax Department ***** SANJEEV PRAKASH SHARMA, J. (Oral) Notice of motion. Mr. Yogesh Putney, Senior Standing Counsel, 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 Bench in led 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 circular or instructions by the Board could not have been issued to override statutory provisions or to make them otiose or IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 25489-2024 (O&M) Date of Decision:04.10.2024 ..…...Petitioner …......Respondent HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA ALOK JAIN , Advocate for the petitioner. , Senior Standing Counsel Income Tax Department. , Senior Standing Counsel, accepts notice on 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 led 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 ard could not have been issued to override statutory provisions or to make them otiose or Petitioner ....Respondent notice on 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-25489-2024 obsolete. Legislative enactments having financial implications are required to be followed strictly and mandatorily. By exercising the powers contained in Sections 11 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. 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 diff 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 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. 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 accordingly, if so advised. 20. All the order passed by the Court shall stand merged with the present order.” 2024 (O&M) Page 2 of 3 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 implementation. 17. In view of the aforesaid discussion, there is no occasion to distinguish or take a diff 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 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. 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.” obsolete. Legislative enactments having financial implications are required to be followed strictly and mandatorily. By exercising the powers contained in 9 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 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 Act, 1961 and proceed accordingly, if so advised. 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-25489-2024 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. 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 passed above shall apply to the present case. Accordingly, notice issued by the Jurisdictional Assessing Officer u/s 148 dated 14.03.2024 consequential proceedings are set aside. All pending applications also stand disposed of accordingly. [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 14.03.2024 (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 "