VINOD KUMAR V. UNION OF INDIA AND OTHERS

CWP/32714/2024

AI Insights

The case involves multiple writ petitions challenging the notices and orders issued by the Jurisdictional Assessing Officer under Section 148 of the Income Tax Act, 1961. The petitioners argued that these actions were not in accordance with the statutory provisions, particularly in the context of faceless assessments as required under Section 144B. 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 set precedents that circulars and instructions could not override statutory provisions. The court's decision reinforced the principle that legislative provisions must be adhered to strictly, and any administrative instructions must not contravene these laws.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 725524 (HC-MISC)
• Appeal Type: Others
• Pronouncement Date: 04-12-2024
• 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: GAURI NEO RAMPAL; YOGESH PUTNEY; VAIBHAV GUPTA
• Assessee Lawyers: SANDEEP GOYAL; SAMEESH BASSI
• Keywords: Circulars; Faceless assessment; Instructions; Jurisdiction; Statutory provisions
• Section: 148; 119; 144B; 120

Judgement Text

" 111 IN THE HIGH COURT OF PUNJAB AND HARYANA AT VINOD KUMAR UNION OF INDIA AND OTH CORAM: HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON'BLE MR. JUSTICE Present: Mr. Mr. Ms. Gauri Neo Rampal, Senior Standing Counsel for the Mr. Yogesh Putney, Senior Standing Counsel, Mr. Vaibhav Gupta, Standing Counsel, for respondent No.5. **** SANJEEV PRAKASH SHARMA, J. 1. Notice of motion. 2. M on behalf of the respondents Standing Counsel accepts notice on behalf of respondent No.5. 3. All petition stands finally examined and concluded by 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 “ 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 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CWP-327 Date of Decision: VINOD KUMAR V/s. UNION OF INDIA AND OTHERS HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON'BLE MR. JUSTICE SANJAY VASHISTH Mr. Sandeep Goyal, Advocate and Mr. Sameesh Bassi, Advocate for the Ms. Gauri Neo Rampal, Senior Standing Counsel for the respondents No.1 to 4 Mr. Yogesh Putney, Senior Standing Counsel, Mr. Vaibhav Gupta, Standing Counsel, for respondent No.5. ***** SANJEEV PRAKASH SHARMA, J. (Oral) Notice of motion. Ms. Gauri Neo Rampal, Senior Standing Counsel, accepts on behalf of the respondents No.1 to 4 and Mr. Yogesh Putney, Senior Standing Counsel accepts notice on behalf of respondent No.5. All the counsel are ad idem that the issue involved in the present petition stands finally examined and concluded by 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 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 32714-2024 (O&M) Date of Decision:04.12.2024 ..…...Petitioner(s) V/s. …......Respondent(s) HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA SANJAY VASHISTH and for the petitioner. Ms. Gauri Neo Rampal, Senior Standing Counsel Mr. Yogesh Putney, Senior Standing Counsel, Mr. Vaibhav Gupta, Standing Counsel, for respondent No.5. , Senior Standing Counsel, accepts notice No.1 to 4 and Mr. Yogesh Putney, Senior Standing Counsel accepts notice on behalf of respondent No.5. 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 (s) notice No.1 to 4 and Mr. Yogesh Putney, Senior that the issue involved in the present CWP , CWP No.15745 of , Suresh Kumar 2024.12.09 10:31 I attest to the accuracy and integrity of this document CWP-32714-2024 (O&M) obsolete. Legislative enactments having finan 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 ow 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 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 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 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 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.” 2024 (O&M) Page 2 of 3 obsolete. Legislative enactments having finan 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 ow 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 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, 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.” 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 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. 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 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. 20. All the writ petitions are allowed. The interim order passed by the Court shall stand merged with the Suresh Kumar 2024.12.09 10:31 I attest to the accuracy and integrity of this document CWP-32714-2024 (O&M) 4. Keeping in view above, aforesaid terms. The observations and order passed above shall apply mutandis to the present case. Accordingly, notice (Annexure P- Income Tax Act, 1961 aside. 5. All pending applications also stand disposed of accordingly. December 4, Ess Kay Whether speaking / reasoned Whether Reportable 2024 (O&M) Page 3 of 3 Keeping in view above, we allow aforesaid terms. The observations and order passed above shall apply to the present case. Accordingly, notice -7) 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 2024 [SANJAY VASHISTH Whether speaking / reasoned : Yes Whether Reportable : Yes allow this Writ Petition in the aforesaid terms. The observations and order passed above shall apply mutatis to the present case. Accordingly, notice dated 06.04.2023 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 this Writ Petition in the mutatis 06.04.2023 of the are set Suresh Kumar 2024.12.09 10:31 I attest to the accuracy and integrity of this document "