SIKA INDIA PRIVATE LIMITED V. ASSISTANT COMMISSIONER OF INCOME TAX-CIRCLE 3(1), GURGAON AND OTHERS

CWP/26952/2023

AI Insights

The case involves SIKA India Pvt. Ltd. challenging notices issued by the Assistant Commissioner of Income Tax and others, which were deemed unjustified based on a precedent set in a bunch of writ petitions including a lead case, CWP-21509-2023. The core issue revolved around the legality of notices issued under Section 148 of the Income Tax Act, 1961, without adhering to the faceless assessment procedure mandated under Section 144B. The court's decision emphasized the primacy of statutory provisions over administrative circulars, particularly in matters with financial implications.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 749651 (HC-MISC)
• Appeal Type: Others
• Pronouncement Date: 30-07-2024
• Assessment Year: misc
• Other Referred Cases: CWP-21509-2023, Jasjit Singh Vs. Union of India and Others
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: VARUN ISSAR
• Assessee Lawyers: UMANG GOYAL
• Keywords: Circular Override; Financial Implications; Jurisdictional Assessing Officer; Statutory provisions; Unjustified notice
• Section: 148; 119; 144B; 120

Judgement Text

"271 IN THE HIGH COURT OF PUNJAB AND HARYANA SIKA India Pvt. Ltd. Assistant Commissioner of Income Tax and others CORAM: HON’BLE MR. JUSTICE HON’BLE MR. JUSTIC Present Mr. Umang Goyal, Advocate for the petitioner. M SANJEEV PRAKASH SHARMA, J.(Oral) 1. Learned counsel for both the sides are raised in this writ petition stands finally adjudicated by this Court vide order dated 29.07.2024 passed in a bunch of writ petitions in which the lead case is CWP-21509-2023 wherein this Court has held the notice issued by the Jurisdictional Assessing Officer as unjustified. 2. The Court has passed the following order: “14 15 16 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 requir 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 CWP Date of Decision: SIKA India Pvt. Ltd. Vs. Assistant Commissioner of Income Tax and others HON’BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON’BLE MR. JUSTICE SANJAY VASHISTH Mr. Umang Goyal, Advocate for the petitioner. Mr. Varun Issar, Sr. Standing Counsel *** SANJEEV PRAKASH SHARMA, J.(Oral) Learned counsel for both the sides are raised in this writ petition stands finally adjudicated by this Court vide order dated 29.07.2024 passed in a bunch of writ petitions in which the lead case is 2023 titled as Jasjit Singh Vs. wherein this Court has held the notice issued by the Jurisdictional Assessing Officer as unjustified. The Court has passed the following order: 14 xxx xxx xxx xxx 15 xxx xxx xxx xxxx 16. We are in agreement with 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 requir 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 CWP-26952-2023 (O&M) Date of Decision: 30.07.2024 …Petitioner Assistant Commissioner of Income Tax and others …Respondents SANJEEV PRAKASH SHARMA SANJAY VASHISTH Mr. Umang Goyal, Advocate for the petitioner. Sr. Standing Counsel for the respondents. SANJEEV PRAKASH SHARMA, J.(Oral) Learned counsel for both the sides are ad idem that the issue raised in this writ petition stands finally adjudicated by this Court vide order dated 29.07.2024 passed in a bunch of writ petitions in which the lead case is Vs. Union of India and Others, wherein this Court has held the notice issued by the Jurisdictional Assessing The Court has passed the following order:- 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 that the issue raised in this writ petition stands finally adjudicated by this Court vide order dated 29.07.2024 passed in a bunch of writ petitions in which the lead case is Union of India and Others, wherein this Court has held the notice issued by the Jurisdictional Assessing RAJESH KUMAR 2024.08.02 09:37 I attest to the accuracy and authenticity of this order/judgment. Punjab & Haryana High Court, Chandigarh. [2] CWP-26952-2023 (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. 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 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. 21. xxx xxx xxxx 22. xxx xxx xxxx” 3. In view of the above, we allow the writ petition in the aforesaid terms and set aside the impugned notice/order dated 08.02.2023, 27.03.2023 RAJESH KUMAR 2024.08.02 09:37 I attest to the accuracy and authenticity of this order/judgment. Punjab & Haryana High Court, Chandigarh. [3] CWP-26952-2023 (O&M) and 31.03.2023. The observations and order passed above shall apply mu- tatis mutandis to the present case. 4. 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. 5. Pending applications, if any, shall stand disposed of accordingly. (SANJEEV PRAKASH SHARMA) JUDGE (SANJAY VASHISTH) JUDGE 30.07.2024 rajesh 1. Whether speaking/reasoned? : Yes/No 2. Whether reportable? : Yes/No RAJESH KUMAR 2024.08.02 09:37 I attest to the accuracy and authenticity of this order/judgment. Punjab & Haryana High Court, Chandigarh. "