SHWETA N SHARMA vs. INCOME TAX OFFICER, WARD 6 (1) CHANDIGARH AND OTHERS

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CWP/28088/2024HC Punjab & HaryanaPHHC01141429202418 October 2024Author: MR. JUSTICE SANJEEV PRAKASH SHARMA,MR. JUSTICE SANJAY VASHISTH3 pages
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What did the High Court hold?

The High Court held that notices issued under Section 148 of the Income Tax Act, 1961, and the consequential proceedings initiated without conducting the faceless assessment as envisaged under Section 144B, are contrary to the provisions of the Act and are therefore without jurisdiction. The Court reiterated its previous decision in Jasjit Singh vs. Union of India, stating that circulars or instructions issued by the Board cannot override statutory provisions or make them obsolete. 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. Therefore, the notices dated 23.03.2023, 20.03.2024, 16.03.2023, 30.03.2023, and the order dated 30.03.2023 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 so advised. The writ petition was allowed, and interim orders were merged with the final order.

What were the facts?

The petitioner, Shweta N Sharma, filed a writ petition challenging a notice dated 31.08.2024 issued by the Jurisdictional Assessing Officer under Section 148 of the Income Tax Act, 1961, and all consequential proceedings. The petitioner argued that the assessment proceedings were initiated without jurisdiction, particularly in light of faceless assessment procedures. The revenue, represented by the Income Tax Department, accepted notice. The High Court noted that the issue was identical to previous cases decided by the same court, specifically Jasjit Singh vs. Union of India and Jatinder Singh Bhangu vs. Union of India, both decided on 19.07.2024.

What were the issues?

1. Whether notices issued under Section 148 of the Income Tax Act, 1961, and subsequent proceedings initiated without conducting faceless assessment as envisaged by Section 144B of the Act, are valid and passed with jurisdiction. (Mixed question of law and fact, concerning Sections 148 and 144B of the Income Tax Act, 1961). Assessee's Contention: The petitioner contended that the assessment proceedings, including the notice under Section 148, were initiated without jurisdiction because they were not conducted through the faceless assessment mechanism mandated by Section 144B of the Act. Revenue's Contention: The judgment records that the revenue accepted notice and did not present separate arguments, but implicitly supported the validity of the assessment proceedings. The court relied on previous judgments where similar contentions were addressed.

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

140 IN TH SHWETA N S

THE INCOME

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 SHARMA

V ME TAX OFFICER, WARD 6(1) C

HON'BLE MR. JUSTICE SANJ HON'BLE MR. JUSTICE SANJ Mr. Rochak Singla, Advocate, fo Mr. Yogesh Putney, Senior Stand for the respondent-Income Tax D ***** RAKASH SHARMA, J. (Oral) Notice of motion. Mr. Yogesh Putney, 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 28088-2024 (O&M) f Decision:18.10.2024

..…...Petitioner(s) V/s. CHANDIGARH, AND OTHERS .......Respondent(s) NJEEV PRAKASH SHARMA NJAY VASHISTH or the petitioner. ding Counsel, Department nding 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 2024.10.19 11:31 I attest to the accuracy and integrity of this document

CWP-28088-202

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 31.08.2024 e s 4 Suresh Kumar 2024.10.19 11:31 I attest to the accuracy and integrity of this document

CWP-28088-202

(Annexure P- Income Tax A 5. A

October 18, 2 Ess Kay

Whether speak Whether Repor 024 (O&M) -4) 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 2024.10.19 11:31 I attest to the accuracy and integrity of this document

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