VANDANA MALHOTRA V. INCOME TAX OFFICER AND OTHERS

CWP/25267/2024

AI Insights

The case involves Vandana Malhotra, the petitioner, against the Income Tax Officer and others, concerning the legality of notices issued under Section 148 of the Income Tax Act, 1961. The core issue was whether the circulars and instructions issued by the tax authorities could override statutory provisions related to tax assessments. The court referenced two previous cases, Jasjit Singh vs. Union of India and Jatinder Singh Bhangu vs. Union of India, which had concluded that such circulars cannot make statutory provisions obsolete or otiose. The court's decision reinforced the principle that legislative enactments with financial implications must be adhered to strictly, and any deviation by the authorities must be legally justified.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 748855 (HC-MISC)
• Appeal Type: Others
• Pronouncement Date: 03-10-2024
• 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: RANVIJAYSINGH
• Assessee Lawyers: VISHAV GUPTA; MAMTA GUPTA
• Keywords: Circulars and Instructions; Faceless assessment; Financial Implications; Jurisdiction; Statutory provisions
• Section: 148; 119; 144B; 120

Judgement Text

"CWP-25267-2024 119 IN THE HIGH COURT OF PUNJAB AND HARYANA AT Vandana Malhotra Income Tax Officer and CORAM: HON’BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON’BLE MR. JUSTICE Present: Mr. Vishav Bhart Gupta, Advocate and Ms. Mamta Gupta, Advocate for the petitioner. Mr. for the respondents SANJEEV PRAKASH SHARMA, J.(Oral) 1. Notice of motion. 2. Mr. Ranvijay Singh, respondents/Revenue 3. Both the counsel are petition stands finally No.21509 of 2023 titled as Jasjit Singh vs. Union of India and others decided on 29.07.2024, No.15745 of 2024 tit and others held as under: 2024 Page 1 of 3 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Vandana Malhotra Vs. Income Tax Officer and others **** HON’BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON’BLE MR. JUSTICE SANJAY VASHISTH **** Mr. Vishav Bhart Gupta, Advocate and Ms. Mamta Gupta, Advocate for the petitioner. Mr. Ranvijay Singh ,Sr. Standing Counsel for the respondents/Revenue. **** SANJEEV PRAKASH SHARMA, J.(Oral) Notice of motion. Mr. Ranvijay Singh, Sr. Standing Counsel respondents/Revenue. 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. Union of India and others 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: IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CWP-25267-2024 Date of Decision: 03.10.2024 . . . . Petitioner . . . . Respondents HON’BLE MR. JUSTICE SANJEEV PRAKASH SHARMA SANJAY VASHISTH Mr. Vishav Bhart Gupta, Advocate and Ms. Mamta Gupta, Advocate for the petitioner. Standing Counsel SANJEEV PRAKASH SHARMA, J.(Oral) Sr. Standing Counsel accepts notice on behalf of 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 led as Jatinder Singh Bhangu vs. Union of India , decided on 19.07.2024. This Court in Jasjit Singh (supra) 2024 03.10.2024 Petitioner . . . . Respondents accepts notice on behalf of that the issue involved in the present CWP , CWP led as Jatinder Singh Bhangu vs. Union of India (supra) RASHMI 2024.10.03 16:49 I attest to the accuracy and integrity of this document CWP-25267-2024 by the Coordinate Bench and hold that such circular or instructions by the 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 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 taxpayer and circulars can be issued only for the purpose of supplementing the statutory provisions and for their implementation. no occasion to distinguish or take a di 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 an 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, 20.0 30.03.2023 and order dated 30.03.2023, are set aside for want of jurisdiction. at liberty to follow the procedure as laid down under the Act, 1961 and proceed accordingly, if so advised. 2024 Page 2 of 3 “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 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 di 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 an 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, 20.0 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. We are in agreement with the view taken by the Coordinate Bench and hold that such circular or 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 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 s. 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. RASHMI 2024.10.03 16:49 I attest to the accuracy and integrity of this document CWP-25267-2024 interim order passed by the Court shall stand merged with the present order.” 4. Keeping in view above, terms. The observations and order passed above shall apply mutand Jurisdictional Assessing Officer (P-1) as well as the 5. All pending applications also stand disposed of accordingly. October 03, 2024 rashmi 1. Whether speaking/reasoned? 2. Whether reportable? 2024 Page 3 of 3 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 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 as well as the consequential proceedings All pending applications also stand disposed of accordingly. (SANJEEV PRAKASH SHARMA , 2024 1. Whether speaking/reasoned? Yes/No 2. Whether reportable? Yes/No the writ petitions are allowed. The interim order passed by the Court shall stand merged this Writ Petition in the aforesaid terms. The observations and order passed above shall apply mutatis Accordingly, notice issued by under Section 148 dated 24.03.2024 consequential proceedings 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 24.03.2024 RASHMI 2024.10.03 16:49 I attest to the accuracy and integrity of this document "