TARANJIT SINGH V. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL, CIRCLE-2

CWP/34900/2024

AI Insights

The case involves a challenge to the notices and orders issued by the Jurisdictional Assessing Officer under Section 148 of the Income Tax Act, 1961, which were found to be contrary to the provisions of the Act as they were not based on faceless assessments as required under Section 144B. The petitioners argued that the circulars and instructions issued by the Income Tax Department were being used to override statutory provisions, which was contested in the light of previous judgments by the Coordinate Bench. The court referenced decisions in similar cases, particularly Jasjit Singh vs. Union of India and Jatinder Singh Bhangu vs. Union of India, to reinforce the principle that administrative instructions cannot supersede statutory law.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 681971 (HC-CHANDIGARH)
• Appeal Type: Others
• Pronouncement Date: 20-12-2024
• 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: Others
• Court: HIGH COURT
• Department Lawyers: SAURABH KAPOOR; PRIDHI SANDHU; MUSKAAN GUPTA
• Assessee Lawyers: SUNIL MUKHI
• Keywords: Circulars; Faceless assessment; Income Tax; Jurisdiction; Statutory provisions
• Section: 148; 119; 144B; 120

Judgement Text

" 134 IN THE HIGH COURT OF PUNJAB AND HARYANA AT TARANJIT SINGH DEPUTY COMMISSIONER OF INCOME LUDHIANA CORAM: HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON'BLE MR. JUSTICE Present: Mr. Mr. Saurabh Kapoor, Senior Standing Ms. Pridhi Sandhu, Junior Standing Counsel and Ms. Muskaan Gupta, Advocate for the respondent **** SANJEEV PRAKASH SHARMA, J. 1. Notice of motion. 2. Mr. Saurabh Kapoor on behalf of the respondents/Income Tax Department. 3. 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 a 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 financial IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CWP-34 Date of Decision: TARANJIT SINGH V/s. DEPUTY COMMISSIONER OF INCOME HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON'BLE MR. JUSTICE SANJAY VASHISTH Mr. Sunil K. Mukhi, 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) Notice of motion. Mr. Saurabh Kapoor, Senior Standing Counsel, on behalf of the respondents/Income Tax Department. 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 a 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 Jasjit Singh “16. We are in agreement with 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 34900-2024 (O&M) Date of Decision:20.12.2024 ..…...Petitioner(s) V/s. TAX, CENTRAL, CIRCLE-2, …......Respondent(s) HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA SANJAY VASHISTH for the petitioner. Mr. Saurabh Kapoor, Senior Standing Counsel, with Ms. Pridhi Sandhu, Junior Standing Counsel and Income Tax Department. , Senior Standing Counsel, accepts notice on behalf of the respondents/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 2024 titled 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 enactments having financial (s) 2, ) notice that the issue involved in the CWP , CWP No.15745 of , Suresh Kumar 2025.01.08 13:15 I attest to the accuracy and integrity of this document CWP-34900-2024 (O&M) implications are required t 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 c 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 t 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 liberty to follow the proc 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.” 4. Keeping in view above, we aforesaid terms. The observations and order passed above shall apply 2024 (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 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 t 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.” Keeping in view above, we allow aforesaid terms. The observations and order passed above shall apply o 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 ausing 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. 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 edure 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 allow this Writ Petition in the aforesaid terms. The observations and order passed above shall apply mutatis the mutatis Suresh Kumar 2025.01.08 13:15 I attest to the accuracy and integrity of this document CWP-34900-2024 (O&M) mutandis to the present case. Accordingly, notice (Annexure P- Income Tax Act, 1961 aside. 5. All pending applications also stand disposed of accordingly. December 20 Ess Kay Whether speaking / reasoned Whether Reportable 2024 (O&M) Page 3 of 3 to the present case. Accordingly, notice -2) issued by the Jurisdictional Assessing Officer u/s 148 Income Tax Act, 1961 and all consequential proceedings All pending applications also stand disposed of accordingly. [SANJEEV PRAKASH SHARMA December 20, 2024 [SANJAY VASHISTH Whether speaking / reasoned : Yes Whether Reportable : Yes to the present case. Accordingly, notice dated 11.01.2024 issued by the Jurisdictional Assessing Officer u/s 148 of the consequential proceedings thereof are set All pending applications also stand disposed of accordingly. SANJEEV PRAKASH SHARMA] JUDGE SANJAY VASHISTH] JUDGE Yes / No Yes / No 4 of the are set Suresh Kumar 2025.01.08 13:15 I attest to the accuracy and integrity of this document "