Ritu Mehta V. Union of India

CWP/30004/2024

AI Insights

The case involves a challenge to the notices and orders issued by the Jurisdictional Assessing Officer under Sections 148 and 144B of the Income Tax Act, 1961. The petitioner, Ritu Mehta, contested these actions, arguing that they were not in accordance with the statutory provisions. The court referenced previous decisions in similar cases, notably Jasjit Singh vs. Union of India and Jatinder Singh Bhangu vs. Union of India, which held that administrative circulars cannot override statutory laws. The court's decision reinforced the principle that legislative enactments, especially those with financial implications, must be adhered to strictly, and any deviation by administrative bodies is impermissible.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 697958 (HC-MISC)
• Appeal Type: Others
• Pronouncement Date: 06-11-2024
• 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: Others
• Court: HIGH COURT
• Department Lawyers: RANVIJAYSINGH
• Assessee Lawyers: ANURAG SHARMA
• Keywords: Circulars; Faceless assessment; Financial Implications; Income Tax; Statutory provisions
• Section: 148; 119; 144B; 120

Judgement Text

" 127 IN THE HIGH COURT OF PUNJAB AND HARYANA AT RITU MEHTA UNION OF INDIA CORAM: HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON'BLE MR. JUSTICE Present: Mr. Mr. Ranvijay Singh, Senior Standing Counsel, for the respondent/Income Tax **** SANJEEV PRAKASH SHARMA, J. 1. Notice of motion. 2. Mr. Ranvijay Singh behalf of the respondents/Income Tax Department. 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 obsolete. Legislative enactments having financial implications are required to be followed strictly and mandatorily. By exercising the powers contained in Sections 11 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CWP-3000 Date of Decision: RITU MEHTA V/s. UNION OF INDIA AND OTHERS HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON'BLE MR. JUSTICE SANJAY VASHISTH Mr. Anurag Sharma, Advocate for the petitioner. Mr. Ranvijay Singh, Senior Standing Counsel, for the respondent/Income Tax Department. ***** SANJEEV PRAKASH SHARMA, J. (Oral) Notice of motion. Mr. Ranvijay Singh, Senior Standing Counsel, behalf of the respondents/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 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 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 30004-2024 (O&M) Date of Decision:06.11.2024 ..…...Petitioner(s) V/s. …......Respondent(s) HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA SANJAY VASHISTH for the petitioner. Mr. Ranvijay Singh, Senior Standing Counsel, Department. , Senior Standing Counsel, accepts notice on behalf of the respondents/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 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 (s) notice on that the issue involved in the CWP , CWP No.15745 of , Suresh Kumar 2024.11.07 09:25 I attest to the accuracy and integrity of this document CWP-30004-2024 (O&M) 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 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 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 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 order passed by the Court shall stand merged with the present order.” 4. Keeping in view above, we aforesaid terms. The observations and order passed above shall apply mutandis to the present case. Accordingly, notice (Annexure P- 2024 (O&M) Page 2 of 3 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 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 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 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 aforesaid terms. The observations and order passed above shall apply to the present case. Accordingly, notice -2) issued by the Jurisdictional Assessing Officer u/s 148 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. the writ petitions are allowed. The interim order passed by the Court shall stand merged with the allow this Writ Petition in the aforesaid terms. The observations and order passed above shall apply mutatis to the present case. Accordingly, notice dated 24.03.2024 issued by the Jurisdictional Assessing Officer u/s 148 of the this Writ Petition in the mutatis 4 of the Suresh Kumar 2024.11.07 09:25 I attest to the accuracy and integrity of this document CWP-30004-2024 (O&M) Income Tax Act, 1961 aside. 5. All pending applications also stand November 6, Ess Kay Whether speaking / reasoned Whether Reportable 2024 (O&M) Page 3 of 3 Income Tax Act, 1961 and all consequential proceedings All pending applications also stand [SANJEEV PRAKASH SHARMA , 2024 [SANJAY VASHISTH Whether speaking / reasoned : Yes Whether Reportable : Yes consequential proceedings thereof are set All pending applications also stand disposed of accordingly. SANJEEV PRAKASH SHARMA] JUDGE SANJAY VASHISTH] JUDGE Yes / No Yes / No are set Suresh Kumar 2024.11.07 09:25 I attest to the accuracy and integrity of this document "