Rajni Jain V. Income Tax Officer and Others

CWP/11457/2023

AI Insights

The case involves a challenge to the notices issued 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 conducted under the faceless assessment as envisaged under Section 144B. The petitioners argued that the circulars and instructions issued by the Board were overriding statutory provisions, which led to confusion and hardship for the assessees. The court referenced previous decisions in similar cases, such as Jasjit Singh vs. Union of India and Jatinder Singh Bhangu vs. Union of India, to conclude that such circulars cannot make statutory provisions obsolete and must be adhered to strictly.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 808320 (HC-MISC)
• Appeal Type: Others
• Pronouncement Date: 16-12-2024
• 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: Others
• Court: HIGH COURT
• Department Lawyers: GAURI RAMPAL
• Assessee Lawyers: KAJAL GARG; MUKUL PAMPHER
• Keywords: Circulars and Instructions; Faceless assessment; Income Tax; Legal satisfaction; Statutory provisions
• Section: 148; 119; 144B; 120

Judgement Text

"CWP-11457-2023 104 IN THE HIGH COURT OF PUNJAB AND HARYANA AT RAJNI JAIN INCOME TAX OFFICER AND OTHERS CORAM: HON’BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON’BLE MR. JUSTICE Present: Ms. Kajal Garg, Advocate and Mr. Mukul Pa Mr. Nikhil Goyal, Advocate for the Ms. Gauri Neo Rampal, Sr. Standing Counsel for the SANJEEV PRAKASH SHARMA, J.(Oral) 1. Application No. seeking preponement of the main case 2. For the case is preponed and taken up today itself. 3. Both the counsel are petition stands finally No.21509 of decided on 29.07.2024, No.15745 of 2024 titled as Jatinder Singh Bhangu vs. Union of India 2023 (O&M) Page 1 of 3 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH RAJNI JAIN Vs. INCOME TAX OFFICER AND OTHERS **** HON’BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON’BLE MR. JUSTICE SANJAY VASHISTH **** Ms. Kajal Garg, Advocate and Mr. Mukul Pampher, Advocate for Mr. Nikhil Goyal, Advocate for the petitioner. Ms. Gauri Neo Rampal, Sr. Standing Counsel for the respondents/Revenue. **** SANJEEV PRAKASH SHARMA, J.(Oral) Application No.CM-19825-CWP-2024 seeking preponement of the main case. For the reasons stated in the application, the same is allowed and main case is preponed and taken up today itself. the counsel are ad idem that the issue involved in the 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 No.15745 of 2024 titled as Jatinder Singh Bhangu vs. Union of India IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CM-19825-CWP-2024 in/and CWP-11457-2023 (O&M) Date of Decision: 16.12.2024 . . . . Petitioner . . . . Respondents HON’BLE MR. JUSTICE SANJEEV PRAKASH SHARMA SANJAY VASHISTH for Ms. Gauri Neo Rampal, Sr. Standing Counsel (through VC) SANJEEV PRAKASH SHARMA, J.(Oral) 2024 has been filed by the petitioner reasons stated in the application, the same is allowed and main case is preponed and taken up today itself. that the issue involved in the present examined and concluded by this Court in CWP 2023 titled as Jasjit Singh vs. Union of India and others, and by the Coordinate Bench in CWP No.15745 of 2024 titled as Jatinder Singh Bhangu vs. Union of India in/and (O&M) .2024 Petitioner . . . . Respondents petitioner reasons stated in the application, the same is allowed and main that the issue involved in the present CWP , CWP No.15745 of 2024 titled as Jatinder Singh Bhangu vs. Union of India MOHIT GOYAL 2024.12.16 18:12 I attest to the accuracy and integrity of this document CWP-11457-2023 and others held as under: 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 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 th implementation. 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 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 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 2023 (O&M) Page 2 of 3 and others, decided on 19.07.2024. This Court in 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 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 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 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 . This Court in Jasjit Singh (supra) 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 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 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 e 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 (supra) MOHIT GOYAL 2024.12.16 18:12 I attest to the accuracy and integrity of this document CWP-11457-2023 30.03.2023 and order dated 30.03.2023, are set aside for want of jurisdiction. at liberty to follow the procedure as laid down under the Act, 1961 and proceed accordingly, if so advised. 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 issued under Section 148 of the Income Tax Act, 1961 Jurisdictional Assessing Officer as well as the consequential proceedings are set aside. 5. All pending applications also stand disposed of accordingly. December 16, 2024 Mohit goyal 1. Whether speaking/reasoned? 2. Whether reportable? 2023 (O&M) Page 3 of 3 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.” 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, issued under Section 148 of the Income Tax Act, 1961 Jurisdictional Assessing Officer as well as the consequential proceedings are set aside. All pending applications also stand disposed of accordingly. (SANJEEV PRAKASH SHARMA , 2024 1. Whether speaking/reasoned? Yes/No 2. Whether reportable? Yes/No 30.03.2023 and order dated 30.03.2023, are set aside enue 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 this Writ Petition in the aforesaid terms. The observations and order passed above shall apply mutatis Accordingly, notice dated 13.04.2023 issued under Section 148 of the Income Tax Act, 1961 by Jurisdictional Assessing Officer as well as the consequential 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 13.04.2023 by Jurisdictional Assessing Officer as well as the consequential MOHIT GOYAL 2024.12.16 18:12 I attest to the accuracy and integrity of this document "