VIKAS JAIN V. INCOME TAX OFFICER AND OTHERS

CWP/21651/2024

AI Insights

The case involves a writ petition filed against the notices issued by the Income Tax Officer, Ward 4, Ambala, under Section 148 of the Income Tax Act, 1961. The petitioner challenged the jurisdiction and the procedural validity of the notices and subsequent proceedings. The High Court referenced its previous decisions in similar cases, particularly the Jasjit Singh and Jatinder Singh Bhangu cases, which held that circulars or instructions by the Board cannot override statutory provisions. The court emphasized that legislative enactments with financial implications must be followed strictly and cannot be made otiose or obsolete by administrative instructions.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 749431 (HC-MISC)
• Appeal Type: Others
• Pronouncement Date: 31-08-2024
• 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; MUSKAAN
• Assessee Lawyers: ROHIT KAURA; M GUPTA
• Keywords: Circulars; Faceless assessment; Income Tax; Jurisdiction; Statutory provisions
• Section: 148; 119; 144B; 120

Judgement Text

" CWP-21651-2024 (O&M) 118 IN THE HIGH COURT OF PUNJAB AND HARYANA Vikas Jain Income Tax Officer, Ward 4, Ambala and others CORAM: HON’BLE MR. JUSTICE SANJEEV HON’BLE M Present Mr. Mr. Rohit Kaura, Advocate SANJEEV PRAKASH SHARMA, J.(Oral) 1. Notice of motion. 2. M Gupta, Advocate 3. Both the counsel are present petition stands finally examined and concluded by this Court in No.21509 of 2023 titled as Jasj 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 “16. 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 [1] 2024 (O&M) IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CWP Date of Decision: 31 Vs. Income Tax Officer, Ward 4, Ambala and others HON’BLE MR. JUSTICE SANJEEV HON’BLE MRS. JUSTICE RITU TAGOR Mr. B.M. Monga, Advocate and Mr. Rohit Kaura, Advocate for the petitioner. *** SANJEEV PRAKASH SHARMA, J.(Oral) Notice of motion. Mr. Saurabh Kapoor, Sr. Standing Gupta, Advocate, accepts notice on behalf of the revenue. 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 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 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 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CWP-21651-2024 (O&M) Date of Decision: 31.08.2024 …Petitioner Income Tax Officer, Ward 4, Ambala and others …Respondents HON’BLE MR. JUSTICE SANJEEV PRAKASH SHARMA RITU TAGORE for the petitioner. SANJEEV PRAKASH SHARMA, J.(Oral) Sr. Standing Counsel with Ms. Muskaan accepts notice on behalf of the revenue. ad idem that the issue involved in the present petition stands finally examined and concluded by this Court in CWP it 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: 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 implications are required to be followed strictly and with Ms. Muskaan that the issue involved in the CWP , CWP No.15745 of , 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 implications are required to be followed strictly and RAJESH KUMAR 2024.09.03 09:36 I attest to the accuracy and authenticity of this order/judgment. Punjab & Haryana High Court, Chandigarh. [2] CWP-21651-2024 (O&M) 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 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.” RAJESH KUMAR 2024.09.03 09:36 I attest to the accuracy and authenticity of this order/judgment. Punjab & Haryana High Court, Chandigarh. [3] CWP-21651-2024 (O&M) 4. Keeping in view above, we allow this Writ Petition in the aforesaid terms. The observations and order passed above shall apply mutatis mutandis to the present case. Accordingly, notices issued by the Jurisdictional Assessing Officer under Section 148 dated 27.03.2024 and 30.03.2024 and consequential proceedings are set aside. 5. All pending applications also stand disposed of accordingly. (SANJEEV PRAKASH SHARMA) JUDGE (RITU TAGORE) JUDGE 31.08.2024 rajesh 1. Whether speaking/reasoned? : Yes/No 2. Whether reportable? : Yes/No RAJESH KUMAR 2024.09.03 09:36 I attest to the accuracy and authenticity of this order/judgment. Punjab & Haryana High Court, Chandigarh. "