IKVEER SINGH MAHL vs. INCOME TAX OFFICER

PDF · subscribers
CWP/28290/2024HC Punjab & HaryanaPHHC01142635202419 October 2024Author: MR. JUSTICE SANJEEV PRAKASH SHARMA,MR. JUSTICE SANJAY VASHISTH3 pages
AI SummaryAllowed

What did the High Court hold?

The High Court held that notices issued by the Jurisdictional Assessing Officer under Section 148 of the Income Tax Act, 1961, and consequential proceedings initiated without conducting a faceless assessment as envisaged under Section 144B of the Act, are contrary to the provisions of the Act. The Court agreed with the view taken by the coordinate benches, stating that circulars or instructions from the Board cannot override statutory provisions or make them otiose. Legislative enactments with financial implications must be followed strictly. The Court found that the authorities cannot usurp legal provisions to their own satisfaction or convenience, causing hardship and confusion to assessees. Instructions and circulars can only supplement statutory provisions and aid in their implementation. Therefore, the notices and consequential proceedings were set aside for want of jurisdiction. The revenue was granted liberty to follow the procedure laid down under the Act and proceed accordingly, if advised. The operative direction was to allow the writ petition and set aside the notice dated 22.03.2024 and all consequential proceedings.

What were the facts?

The petitioner, Ikveer Singh, filed a writ petition challenging a notice dated 22.03.2024 issued by the Jurisdictional Assessing Officer under Section 148 of the Income Tax Act, 1961, and all consequential proceedings. The petitioner argued that these proceedings were initiated without conducting a faceless assessment as envisaged by Section 144B of the Act. The revenue, represented by the Income Tax Department, accepted notice. The High Court noted that similar issues had been decided by coordinate benches in previous writ petitions, specifically CWP No. 21509 of 2023 (Jasjit Singh vs. Union of India) decided on 19.07.2024, and CWP No. 15745 of 2023 (Jatinder Singh Bhangu vs. Union of India) decided on 19.07.2024. The present petition was filed in 2024.

What were the issues?

1. Whether notices issued by the Jurisdictional Assessing Officer under Section 148 of the Income Tax Act, 1961, and consequential proceedings initiated without conducting a faceless assessment as envisaged by Section 144B of the Act, are valid? Assessee's Contention: The assessee argued that the proceedings were initiated contrary to the provisions of the Act, specifically Section 144B, which mandates faceless assessments. The assessee relied on the decisions of coordinate benches in Jasjit Singh vs. Union of India and Jatinder Singh Bhangu vs. Union of India. Revenue's Contention: The revenue's counsel accepted notice. The judgment does not record any specific arguments made by the revenue against the assessee's contentions.

Which sections of the Income-tax Act were involved?

Section 148,Section 144B,Section 119,Section 120

AI-generated summary — verify with the full judgment below

103 IN TH IKVEER SING

INCOME TAX

CORAM: H

H

Present: M

M f

* SANJEEV PR

1.

N

2.

M behalf of the r

3.

B present petitio No.21509 of decided on 29 2024 titled a decided on 19

C i o o i m HE HIGH COURT OF PUNJA CHANDIGAR

CWP-2 Date of GH MAHL

V X OFFICER, ITO WARD 7(1), L HON'BLE MR. JUSTICE SANJ HON'BLE MR. JUSTICE SANJ Mr. V.B. Gupta, Advocate, for th Mr. Ranvijay Singh, Senior Stand for the respondent-Income Tax D ***** RAKASH SHARMA, J. (Oral) Notice of motion. Mr. Ranvijay Singh Senior Stan respondents/Income Tax Departm Both the counsel are ad idem on stands finally examined and c f 2023 titled as Jasjit Singh vs 9.07.2024, and by the Coordina as Jatinder Singh Bhangu vs. 9.07.2024. This Court in Jasjit Si “16. We are in agreement with Coordinate Bench and hold t instructions by the Board could n override statutory provisions or t obsolete. Legislative enactmen implications are required to be mandatorily. By exercising the AB AND HARYANA AT RH 28290-2024 (O&M) f Decision:19.10.2024

..…...Petitioner(s) V/s. LUDHIANA AND OTHERS

.......Respondent(s) NJEEV PRAKASH SHARMA NJAY VASHISTH he petitioner. ding Counsel, Department ding Counsel, accepts notice on ment. that the issue involved in the concluded by this Court in CWP s. Union of India and others, ate Bench in CWP No.15745 of . Union of India and others, Singh (supra) held as under: the view taken by the that such circular or not have been issued to to make them otiose or nts having financial e followed strictly and powers contained in ) n e P , f , Suresh Kumar 2024.10.22 12:29 I attest to the accuracy and integrity of this document

CWP-28290-202

S S a s a t a s i 1 o s w 1 C u p f o p d 3 f 1 l A 2 o p

4.

K aforesaid term mutandis to 024 (O&M) Sections 119 and 120 of the A Section 144B (7 & 8), the a allowed to usurp the legal pro satisfaction and convenience ca assessees. It also leaves confusio taxpayers. In the opinion of th and circulars can be issued on supplementing the statutory pro implementation.

17.

In view of the aforesaid d occasion to distinguish or take suggested by the learned counse what has already been held by th

18.

Keeping in view the law Coordinate Bench (supra), notic under Section 148 of the proceedings initiated thereafter w faceless assessment as envisage of the Act, 1961, have been foun provisions of the Act, 1961 an dated 28.02.2023, 16.03.202 30.03.2023 and order dated 30. for want of jurisdiction.

19.

The respondents-revenue w liberty to follow the procedure a Act, 1961 and proceed according

20.

All the writ petitions are order passed by the Court shall present order.” Keeping in view above, we a ms. The observations and order p the present case. According Act, 1961 as well as authorities cannot be ovisions to their own ausing hardship to the on in the minds of the his Court, instructions nly for the purpose of ovisions and for their discussion, there is no e a different view as el for the revenue from he Coordinate Bench. w laid down by the ces issued by the JAO Act, 1961 and the without conducting the ed under Section 144B d to be contrary to the nd accordingly notices 23, 20.03.2024 and 03.2023, are set aside would be, however, at as laid down under the gly, if so advised. allowed. The interim stand merged with the allow this Writ Petition in the passed above shall apply mutatis gly, notice dated 22.03.2024 e s 4 Suresh Kumar 2024.10.22 12:29 I attest to the accuracy and integrity of this document

CWP-28290-202

(Annexure P- Income Tax A 5. A

October 19, 2 Ess Kay

Whether speak Whether Repor 024 (O&M) -1) issued by the Jurisdictional A Act, 1961 and all consequential p All pending applications also stan [SANJEEV 2024

[SAN

king / reasoned :

Y rtable

:

Y Assessing Officer u/s 148 of the proceedings are set aside. nd disposed of accordingly.

V PRAKASH SHARMA] JUDGE

NJAY VASHISTH] JUDGE Yes / No Yes / No e Suresh Kumar 2024.10.22 12:29 I attest to the accuracy and integrity of this document

More judgments on Section 148

All 35,022 judgments and leading authorities on Section 148 →

Recent GST High Court judgments

Search GST case law →