SEEMA BISHNOI V. DEPUTY COMMISSIONER OF INCOME TAX

CWP/22008/2024

AI Insights

The case involves Seema Bishnoi challenging the actions of the Deputy Commissioner of Income Tax, Panchkula, under the Income Tax Act, 1961. The core issue was the legality of notices issued under Section 148 without conducting a faceless assessment as required under Section 144B. The petitioner argued that the circulars and instructions issued by the tax authorities were being used to override statutory provisions, causing confusion and hardship to taxpayers. The court referenced decisions in similar cases, particularly Jasjit Singh vs. Union of India and Jatinder Singh Bhangu vs. Union of India, which held that such circulars cannot make statutory provisions obsolete.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 761948 (HC-MISC)
• Appeal Type: Others
• Pronouncement Date: 25-09-2024
• 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: SAURABH KAPOOR
• Assessee Lawyers: SUNIL MUKHI
• Keywords: Circulars; Faceless assessment; Income Tax; Jurisdiction; Statutory provisions
• Section: 148; 119; 144B; 120

Judgement Text

" 258 IN THE HIGH COURT OF PUNJAB AND HARYANA AT SEEMA BISHNOI DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE, HARYANA. CORAM: HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON'BLE MR. JUSTICE Present: Mr. Sunil K. Mukhi, Mr. Saurabh Kapoor, Senior Standing Counsel, for the respondent **** SANJEEV PRAKASH SHARMA, J. 1. 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 Board could not have been issued to override statutory provisions or to make them otiose or obsolete. Legislative enactments having finan 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 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CWP-22008 Date of Decision: SEEMA BISHNOI V/s. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE, HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON'BLE MR. JUSTICE SANJAY VASHISTH Mr. Sunil K. Mukhi, Advocate for the petitioner Mr. Saurabh Kapoor, Senior Standing Counsel, for the respondent-Income Tax Department ***** SANJEEV PRAKASH SHARMA, J. (Oral) 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 Section 144B (7 & 8), the authorities cannot be allowed to IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 22008-2024 (O&M) Date of Decision:25.09.2024 ..…...Petitioners (s) V/s. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE, PANCHKULA, …......Respondent(s) HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA SANJAY VASHISTH Advocate for the petitioner. Mr. Saurabh Kapoor, Senior Standing Counsel, 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 instructions by the Board could not have been issued to override statutory provisions or to make them otiose or obsolete. Legislative cial 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 , ) that the issue involved in the CWP , CWP No.15745 of , Suresh Kumar 2024.09.27 09:13 I attest to the accuracy and integrity of this document CWP-22008-2024 (O&M) usurp the legal provisions to their ow 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 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 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 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 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.” 2. Keeping in view above, aforesaid terms. The observations and order passed above shall apply 2024 (O&M) Page 2 of 3 usurp the legal provisions to their ow 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 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, 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 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 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 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 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. 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.” allow this Writ Petition in the aforesaid terms. The observations and order passed above shall apply mutatis this Writ Petition in the mutatis Suresh Kumar 2024.09.27 09:13 I attest to the accuracy and integrity of this document CWP-22008-2024 (O&M) mutandis to the present case. Accordingly, notice issued by the Jurisdictional Assessing Officer u/s 148 dated consequential proceedings are set aside. 3. All pending applications also stand disposed of accordingly. September 25 Ess Kay Whether speaking / reasoned Whether Reportable 2024 (O&M) Page 3 of 3 to the present case. Accordingly, notice issued by the Jurisdictional Assessing Officer u/s 148 dated 26.03.2024 (Annexure consequential proceedings are set aside. All pending applications also stand disposed of accordingly. [SANJEEV PRAKASH SHARMA 25, 2024 [SANJAY VASHISTH Whether speaking / reasoned : Yes Whether Reportable : Yes to the present case. Accordingly, notice issued by the Jurisdictional 26.03.2024 (Annexure P-2), and all All pending applications also stand disposed of accordingly. SANJEEV PRAKASH SHARMA] JUDGE SANJAY VASHISTH] JUDGE Yes / No Yes / No to the present case. Accordingly, notice issued by the Jurisdictional all Suresh Kumar 2024.09.27 09:13 I attest to the accuracy and integrity of this document "