Sukhchain Singh V. National E-Assessment Centre and Others

CWP/32186/2024

AI Insights

The case involves Sukhchain Singh challenging the actions of the National E-Assessment Centre and others, which were based on notices and orders issued under Section 148 of the Income Tax Act, 1961. The petitioner argued that these actions were not in accordance with the statutory provisions, particularly concerning the faceless assessment process mandated under Section 144B of the Act. The court referenced previous decisions in similar cases, notably Jasjit Singh vs. Union of India and Jatinder Singh Bhangu vs. Union of India, which had established that such circulars and instructions could not override statutory provisions. The court concluded that the notices and subsequent proceedings were invalid as they did not adhere to the required legal framework for faceless assessments.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 799800 (HC-MISC)
• Appeal Type: Others
• Pronouncement Date: 17-12-2024
• 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; PRIDHI SANDHU; MUSKAAN GUPTA
• Assessee Lawyers: MANINDER ARORA; NAYAN JAIN
• Keywords: Circulars; Faceless assessment; Financial Implications; Jurisdiction; Statutory provisions
• Section: 148; 119; 11; 144B(8); 120; 144B(7)

Judgement Text

" 111 IN THE HIGH COURT OF PUNJAB AND HARYANA AT SUKHCHAIN SINGH NATIONAL E CORAM: HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON'BLE MR. JUSTICE Present: Mr. Ms. Nayan Jain Mr. Saurabh Kapoor, Senior Standing Ms. Pridhi Sandhu, Junior Standing Counsel and Ms. Muskaan Gupta, Advocate 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 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 Section 144B (7 & 8), the authorities cannot be IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CWP-32186 Date of Decision: SUKHCHAIN SINGH V/s. NATIONAL E-ASSESSMENT CENTRE AND OTHERS HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON'BLE MR. JUSTICE SANJAY VASHISTH Mr. Maninder Arora, Advocate and Ms. Nayan Jain, Advocate for the Mr. Saurabh Kapoor, Senior Standing Ms. Pridhi Sandhu, Junior Standing Counsel and Ms. Muskaan Gupta, Advocate 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 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 32186-2024 (O&M) Date of Decision:17.12.2024 ..…...Petitioner(s) V/s. AND OTHERS …......Respondent(s) HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA SANJAY VASHISTH and for the petitioner. Mr. Saurabh Kapoor, Senior Standing Counsel, with Ms. Pridhi Sandhu, Junior Standing Counsel and 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 Section 144B (7 & 8), the authorities cannot be (s) ) that the issue involved in the CWP , CWP No.15745 of , CWP-32186-2024 (O&M) 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 diff 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 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. 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 the order passed by the Court shall stand merged with the present order.” 2. 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 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 diff 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 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. 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 -5) issued by the Jurisdictional Assessing Officer u/s 148 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. 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 10.04.2024 issued by the Jurisdictional Assessing Officer u/s 148 of the this Writ Petition in the mutatis 10.04.2024 of the CWP-32186-2024 (O&M) Income Tax Act, 1961 aside. 3. All pending applications also stand dispose December 17 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 dispose [SANJEEV PRAKASH SHARMA December 17, 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 "