Vipan Kumar Gupta V. Income Tax Officer, Ward 1, Panipat

CWP/33341/2024

AI Insights

The case involves a dispute where the Income Tax Officer, Ward 1, Panipat, issued notices under Section 148 of the Income Tax Act, 1961, which were challenged in the High Court. The petitioners argued that these notices and the subsequent proceedings were not conducted as per the faceless assessment provisions under Section 144B of the Act, leading to a lack of jurisdiction. The court referenced previous decisions in similar cases, particularly Jasjit Singh vs. Union of India and Jatinder Singh Bhangu vs. Union of India, which held that such circulars cannot override statutory provisions. The court's decision reinforced the principle that legislative enactments with financial implications must be adhered to strictly, and any deviation or misuse of powers by tax authorities causing hardship to assessees is impermissible.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 797621 (HC-CHANDIGARH)
• Appeal Type: Others
• Pronouncement Date: 11-12-2024
• 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: GAURI RAMPAL; VEDIKA; AMIT KAUSHIK; DIVYA ARORA
• Assessee Lawyers: SANJAY VASHISTH
• Keywords: Circulars; Faceless assessment; Financial Implications; Income Tax; Statutory provisions
• Section: 148; 119; 144B; 120

Judgement Text

" 129 IN THE HIGH COURT OF PUNJAB AND HARYANA AT VIPAN KUMAR GUPTA INCOME TAX OFFICER, WARD 1, PANIPAT CORAM: HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON'BLE MR. JUSTICE Present: Mr. Mr. M Ms. Gauri Neo Rampal, Senior Standing Counsel for the respondent **** SANJEEV PRAKASH SHARMA, J. 1. Notice of motion. 2. M 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 finan implications are required to be followed strictly and IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CWP-33341 Date of Decision: VIPAN KUMAR GUPTA V/s. INCOME TAX OFFICER, WARD 1, PANIPAT HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON'BLE MR. JUSTICE SANJAY VASHISTH Mr. Divya Arora, Advocate and Mr. Amit Kaushik, Advocate for the Ms. Vedika, Advocate for Ms. Gauri Neo Rampal, Senior Standing Counsel for the respondent-Income Tax Department ***** SANJEEV PRAKASH SHARMA, J. (Oral) Notice of motion. Ms. Vedika, Advocate, accepts 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 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 finan implications are required to be followed strictly and IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 33341-2024 (O&M) Date of Decision:11.12.2024 ..…...Petitioner(s) V/s. INCOME TAX OFFICER, WARD 1, PANIPAT AND OTHERS …......Respondent(s) HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA SANJAY VASHISTH for the petitioner. Ms. Gauri Neo Rampal, Senior Standing Counsel Income Tax Department accepts notice on behalf of the 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 implications are required to be followed strictly and (s) ) notice on behalf of the that the issue involved in the CWP , CWP No.15745 of , Suresh Kumar 2024.12.11 17:58 I attest to the accuracy and integrity of this document CWP-33341-2024 (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 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.” 4. Keeping in view above, aforesaid terms. The observations and order passed above shall apply 2024 (O&M) Page 2 of 3 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.” Keeping in view above, we allow aforesaid terms. The observations and order passed above shall apply 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 allow this Writ Petition in the aforesaid terms. The observations and order passed above shall apply mutatis this Writ Petition in the mutatis Suresh Kumar 2024.12.11 17:58 I attest to the accuracy and integrity of this document CWP-33341-2024 (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 11 Ess Kay Whether speaking / reasoned Whether Reportable 2024 (O&M) Page 3 of 3 to the present case. Accordingly, notice -1) 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 11, 2024 [SANJAY VASHISTH Whether speaking / reasoned : Yes Whether Reportable : Yes to the present case. Accordingly, notice dated 19.03.2024 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 2024.12.11 17:58 I attest to the accuracy and integrity of this document "