SHREE GOW RAKSHNI SABHA V. ASSISTANT COMMISSIONER OF INCOME TAX AND ORS

CWP/10788/2023

AI Insights

The case involves Shree Gow Rakshni Sabha challenging the actions of the Commissioner of Income Tax and others, where notices and orders were issued under the Income Tax Act, 1961. The core issue was the legality of these notices and orders in the context of statutory provisions and the powers of the tax authorities. The court referenced two previous judgments (Jasjit Singh vs. Union of India and Jatinder Singh Bhangu vs. Union of India) which had established that circulars and instructions cannot override statutory provisions. The court found that the actions taken under Sections 148 and 144B of the Act, 1961 were not in accordance with the statutory requirements, leading to the setting aside of the notices and orders.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 763667 (HC-MISC)
• Appeal Type: Others
• Pronouncement Date: 16-10-2024
• Assessment Year: misc
• Other Referred Cases: Jasjit Singh vs. Union of India, 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: VARUN ISSAR
• Assessee Lawyers: NIKHIL GOYAL
• Keywords: Circular; Faceless assessment; Instructions; Jurisdiction; Statutory provisions; Taxpayer confusion
• Section: 148; 119; 144B; 120

Judgement Text

"CWP-10788-2023(O&M) 261 IN THE HIGH COURT OF PUNJAB AND HARYANA AT Shree Gow Rakshni Sabha Assistant Commissioner of Income Tax and other CORAM: HON’BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON’BLE MR. JUSTICE Present: Mr Mr for the respondents SANJEEV PRAKASH SHARMA, J.(Oral) 1. Both the counsel are petition stands finally No.21509 of 2023 titled as Jasjit Singh vs. decided on 29.07.2024, No.15745 of 2024 titled as Jatinder Singh Bhangu vs. Union of India 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 enactments having financial 2023(O&M) Page 1 of 3 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Shree Gow Rakshni Sabha Vs. Commissioner of Income Tax and other **** HON’BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON’BLE MR. JUSTICE SANJAY VASHISTH **** Mr. Nikhil Goyal, Advocate for the petitioner. Mr. Varun Issar ,Sr. Standing Counsel for the respondents/Revenue. **** SANJEEV PRAKASH SHARMA, J.(Oral) Both 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. decided on 29.07.2024, and by the Coordinate Bench in No.15745 of 2024 titled as Jatinder Singh Bhangu vs. Union of India 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 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CWP-10788-2023 Date of Decision: 16.10.2024 . . . . Petitioner Commissioner of Income Tax and others . . . . Respondents HON’BLE MR. JUSTICE SANJEEV PRAKASH SHARMA SANJAY VASHISTH , Advocate for the petitioner. Standing Counsel SANJEEV PRAKASH SHARMA, J.(Oral) that the issue involved in the present examined and concluded by this Court in CWP No.21509 of 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 , decided on 19.07.2024. 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 obsolete. Legislative enactments having financial 2023 16.10.2024 Petitioner . . . . Respondents that the issue involved in the present CWP , CWP No.15745 of 2024 titled as Jatinder Singh Bhangu vs. Union of India (supra) RASHMI 2024.10.16 17:52 I attest to the accuracy and integrity of this document CWP-10788-2023(O&M) 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 sa 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 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 Bench. 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 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. at the Act, 1961 and proceed accordingly, if so advised. interim order passed by the Court shall stand merged with the present order.” 2023(O&M) Page 2 of 3 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 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, 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.” 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 tisfaction 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 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. 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 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, 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 RASHMI 2024.10.16 17:52 I attest to the accuracy and integrity of this document CWP-10788-2023(O&M) 2. Keeping in view above, terms. The observations and order passed above shall apply mutandis Jurisdictional Assessing Officer Tax Act, 1961 consequential proceedings 3. All pending applications also stand disposed of accordingly. October 16, 202 Rashmi 1. Whether speaking/reasoned? 2. Whether reportable? 2023(O&M) Page 3 of 3 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, Jurisdictional Assessing Officer under Section Tax Act, 1961 dated 30.03.2023(Annexure P 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 this Writ Petition in the aforesaid terms. The observations and order passed above shall apply mutatis Accordingly, notices issued by under Section 148A(d) of the Income ed 30.03.2023(Annexure P-3) as well as the are set aside. 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 issued by of the Income as the RASHMI 2024.10.16 17:52 I attest to the accuracy and integrity of this document "