Sarbjit Singh V. Union of India

CWP/26487/2022

AI Insights

The case involves multiple writ petitions filed by Sarbjit Singh against the Union of India, concerning the issuance of show cause notices by the Income Tax authorities. The petitioner argued that the notices were issued without the correct Permanent Account Number (PAN) and were not received, leading to orders being passed without his knowledge or opportunity to respond. The court found that the notices were indeed issued incorrectly and that the petitioner was not given a fair chance to contest the assessments made against him. The court's decision to quash the orders and direct fresh notices was based on the principles of natural justice and proper procedural compliance under the Income Tax Act, 1961.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 698125 (HC-CHANDIGARH)
• Appeal Type: Others
• Pronouncement Date: 14-11-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: URVASHI DHUGGA; YOGESH PUTNEY; VAIBHAV GUPTA
• Assessee Lawyers: PEYUSH PRUTHI; SAMEESH BASSI
• Keywords: Assessment; Audi alteram partem; Income Tax; PAN; Show cause notice
• Section: 144

Judgement Text

" 104+222 (5 cases) IN THE HIGH COURT OF PUNJAB AND HARYANA AT SARBJIT SINGH UNION OF INDIA AND OTHERS SARBJIT SINGH UNION OF INDIA AND OTHERS SARBJIT SINGH UNION OF INDIA SARBJIT SINGH UNION OF INDIA AND OTHERS SARBJIT SINGH UNION OF INDIA AND OTHERS CORAM: HON'BLE MR. JUSTICE HON'BLE Present M Mr. Pey Mr. Sameesh Bassi, Advocate Ms. Urvashi Dhugga, Senior Standing Counsel, for the respondent No.2 and 3. Mr. Yogesh Putney, Senior Standing Counsel, with Mr. Vaibhav Gupta, Standing Counsel for the respondent No.4. *** cases) IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 1. CWP Date of Decision: SARBJIT SINGH INDIA AND OTHERS 2. CWP SARBJIT SINGH UNION OF INDIA AND OTHERS 3. CWP SARBJIT SINGH UNION OF INDIA AND OTHERS 4. CWP SARBJIT SINGH UNION OF INDIA AND OTHERS 5. CWP SARBJIT SINGH UNION OF INDIA AND OTHERS HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON'BLE MR. JUSTICE SANJAY VASHISTH Mr. Sandeep Goyal, Advocate Mr. Peyush Pruthi, Advocate and Mr. Sameesh Bassi, Advocate for the Ms. Urvashi Dhugga, Senior Standing Counsel, for the respondent No.2 and 3. Mr. Yogesh Putney, Senior Standing Counsel, with Mr. Vaibhav Gupta, Standing Counsel for the respondent No.4. *** IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CWP-26487-2022 (O&M) Date of Decision:14.11.2024 ...…...Petitioner V/s. ….....Respondents CWP-28477-2022 (O&M) ...…...Petitioner V/s. ….....Respondents CWP-28555-2022 (O&M) ...…...Petitioner V/s. ….....Respondents CWP-3705-2023 (O&M) ...…...Petitioner V/s. ….....Respondents CWP-8222-2023 (O&M) ...…...Petitioner V/s. ….....Respondents SANJEEV PRAKASH SHARMA MR. JUSTICE SANJAY VASHISTH sh Pruthi, Advocate and for the petitioner(s). Ms. Urvashi Dhugga, Senior Standing Counsel, Mr. Yogesh Putney, Senior Standing Counsel, with Mr. Vaibhav Gupta, Standing Counsel Suresh Kumar 2024.11.22 09:28 I attest to the accuracy and integrity of this document CWP-26487-2022 (O&M) CWP-28555-2022 (O&M) CWP CWP-8222-2023 (O&M) SANJEEV PRAKASH SHARMA CM-15144-CWP 1. Application is allowed and the written statement on behalf of respondent No.2 is taken on record. MAIN CASES 2. This order shall dispose of these the issue involved in these 3. These Writ Petitions have been filed for the same petitioner Assessee raising a grievance that the show cause notices were issued to him without the PAN and were not received 4. Learned counsel for the petitioner submits that the petitioner is possessing PAN No.BNYPS3133E, however, after the show cause notices were issued without No.OREPS4207Q petitioner. Resultantly, the petitioner has been made to face the ord were not communicated to him and he could not file any reply to the show cause notices. 5. Learned counsel for the petitioner submits that principal of audi alteram partem laid down for the purpose of assessment under Section 144 of the Act, 1961 (for short “the Act”), show cause notices he would be able to fresh orders. 2022 (O&M), CWP-28477-2022 (O&M) 2022 (O&M) CWP-3705-2023 (O&M) and 2023 (O&M) Page 2 of 4 SANJEEV PRAKASH SHARMA, J. (Oral) CWP-2024 in CWP-28555-2022 Application is allowed and the written statement on behalf of respondent No.2 is taken on record. MAIN CASES This order shall dispose of these issue involved in these Writ Petitions is common. These Writ Petitions have been filed for the same petitioner Assessee raising a grievance that the show cause notices were issued to him PAN and were not received by him Learned counsel for the petitioner submits that the petitioner is ing PAN No.BNYPS3133E, however, after the show cause notices were issued without the PAN, orders have been passed on OREPS4207Q, and has also, therefore, petitioner. Resultantly, the petitioner has been made to face the ord were not communicated to him and he could not file any reply to the show cause notices. Learned counsel for the petitioner submits that audi alteram partem as enshrined and inherent in the procedure laid down for the purpose of assessment under Section 144 of the 1961 (for short “the Act”), it is submitted that if the petitioner is issued show cause notices with PAN No. which the petitioner o he would be able to file his reply and the respondents Application is allowed and the written statement on behalf of This order shall dispose of these five connected Writ Petitions as is common. These Writ Petitions have been filed for the same petitioner Assessee raising a grievance that the show cause notices were issued to him by him. Learned counsel for the petitioner submits that the petitioner is ing PAN No.BNYPS3133E, however, after the show cause notices PAN, orders have been passed on PAN , therefore, not been addressed to the petitioner. Resultantly, the petitioner has been made to face the orders which were not communicated to him and he could not file any reply to the show Learned counsel for the petitioner submits that considering the as enshrined and inherent in the procedure laid down for the purpose of assessment under Section 144 of the Income Tax it is submitted that if the petitioner is issued PAN No. which the petitioner originally possesses, reply and the respondents will be left free to issue Application is allowed and the written statement on behalf of as These Writ Petitions have been filed for the same petitioner- Assessee raising a grievance that the show cause notices were issued to him Learned counsel for the petitioner submits that the petitioner is ing PAN No.BNYPS3133E, however, after the show cause notices PAN not been addressed to the ers which were not communicated to him and he could not file any reply to the show the as enshrined and inherent in the procedure Income Tax it is submitted that if the petitioner is issued riginally possesses, left free to issue Suresh Kumar 2024.11.22 09:28 I attest to the accuracy and integrity of this document CWP-26487-2022 (O&M) CWP-28555-2022 (O&M) CWP CWP-8222-2023 (O&M) 6. Learned counsel for the respondents submits that the PAN which the petitioner alleges to be having in possession earlier notice of the Income Tax authorities and they, therefore, issuing the show cause notices at the said PAN. respondents further communicated 7. We find that the orders have been passed by the Income Tax authorities on the self created No.BNYPS3133E held by the petitioner. dispose of all No.2-Deputy Commissioner of Income Tax, Circle Chandigarh to issue fresh show cause notice relating to the assessment years 2015-16, 2016 petitioner that appropriate opportunity in terms of the provisions of the Act and the Rules to file reply to the show cause notices whereafter 8. Consequently, the order it is made clear that the author influenced by the earlier order pas have been passed and assailed in CWP would be also set aside leaving it open for the discretion and consideration by the authorities in light of the provisions of Act and the Rules. be done in four months 9. It is made clear that the relating to the jurisdiction of respondent No.2 2022 (O&M), CWP-28477-2022 (O&M) 2022 (O&M) CWP-3705-2023 (O&M) and 2023 (O&M) Page 3 of 4 Learned counsel for the respondents submits that the PAN which the petitioner alleges to be having in possession earlier Income Tax authorities and they, therefore, show cause notices at the said PAN. further submits that it is only later on that the PAN was communicated to the Income Tax authorities. We find that the orders have been passed by the Income Tax authorities on the self created PAN No.BNYPS3133E held by the petitioner. We, all these connected Writ Petitions Deputy Commissioner of Income Tax, Circle to issue fresh show cause notice relating to the assessment years 16, 2016-17 and 2017-18 as it is stated by the l petitioner that the petitioner is an NRI. The concerned appropriate opportunity in terms of the provisions of the Act and the Rules to the show cause notices whereafter Consequently, the orders impugned are quashed and set aside and it is made clear that the authorities while passing fresh order, influenced by the earlier order passed by them. The penalty orders, have been passed and assailed in CWP-37 would be also set aside leaving it open for the discretion and consideration by the authorities in light of the provisions of Act and the Rules. four months. It is made clear that the petitioner does no relating to the jurisdiction of respondent No.2 Learned counsel for the respondents submits that the PAN which the petitioner alleges to be having in possession earlier, was not brought to the Income Tax authorities and they, therefore, were prevented from show cause notices at the said PAN. Learned counsel for the submits that it is only later on that the PAN was We find that the orders have been passed by the Income Tax without addressing to PAN We, therefore, deem it appropriate to with directions to the respondent Deputy Commissioner of Income Tax, Circle-1, International Taxation, to issue fresh show cause notice relating to the assessment years 18 as it is stated by the learned counsel for the the petitioner is an NRI. The concerned respondent may give appropriate opportunity in terms of the provisions of the Act and the Rules to the show cause notices whereafter, they may pass a fresh order. impugned are quashed and set aside and ities while passing fresh order, shall not be sed by them. The penalty orders, which 3705-2023 and CWP-8222-2023 would be also set aside leaving it open for the discretion and consideration by the authorities in light of the provisions of Act and the Rules. The exercise to petitioner does not press the argument relating to the jurisdiction of respondent No.2 Deputy Commissioner of Learned counsel for the respondents submits that the PAN which o the were prevented from Learned counsel for the submits that it is only later on that the PAN was We find that the orders have been passed by the Income Tax ithout addressing to PAN therefore, deem it appropriate to with directions to the respondent 1, International Taxation, to issue fresh show cause notice relating to the assessment years earned counsel for the respondent may give appropriate opportunity in terms of the provisions of the Act and the Rules to impugned are quashed and set aside and shall not be which 2023, would be also set aside leaving it open for the discretion and consideration by The exercise to t press the argument Deputy Commissioner of Suresh Kumar 2024.11.22 09:28 I attest to the accuracy and integrity of this document CWP-26487-2022 (O&M) CWP-28555-2022 (O&M) CWP CWP-8222-2023 (O&M) Income Tax, Circle passing the orders. 10. All pending applications disposed of accordingly. November 14 Ess Kay Whether speaking / reasoned Whether Reportable 2022 (O&M), CWP-28477-2022 (O&M) 2022 (O&M) CWP-3705-2023 (O&M) and 2023 (O&M) Page 4 of 4 Income Tax, Circle-1, International Taxation for initiating proceedings and passing the orders. All pending applications filed in of accordingly. [SANJEEV PRAKASH SHARMA [SANJAY VASHISTH 14, 2024 Whether speaking / reasoned : Whether Reportable : 1, International Taxation for initiating proceedings and filed in these Appeals shall stand SANJEEV PRAKASH SHARMA] JUDGE [SANJAY VASHISTH] JUDGE Yes / No Yes / No 1, International Taxation for initiating proceedings and stand Suresh Kumar 2024.11.22 09:28 I attest to the accuracy and integrity of this document "