BHUPINDER KUMAR SHARMA vs. INCOME TAX OFFICER AND OTHERS

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CWP/26021/2024HC Punjab & HaryanaPHHC01132566202404 October 2024Author: MR. JUSTICE SANJEEV PRAKASH SHARMA,MR. JUSTICE ALOK JAIN3 pages
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What did the High Court hold?

The Tribunal allowed the writ petition. It held that notices issued under Section 148 of the Income Tax Act, 1961, and the consequential proceedings initiated thereafter, were found to be contrary to the provisions of the Act, particularly Section 144B, which envisages faceless assessment. The Court agreed with the view taken by a Coordinate Bench in similar cases, stating that instructions by the Board cannot override statutory provisions or make them otiose. The Court emphasized that legislative enactments must be followed strictly and mandatorily, and authorities cannot use powers to their own satisfaction or convenience, causing hardship to assessees. Therefore, the notices dated 28.02.2023, 16.03.2023, 20.03.2024, 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, 1961, and proceed accordingly if so advised. All pending applications were also disposed of.

What were the facts?

The petitioners, Bhupinder Kumar Sharma and others, filed a writ petition challenging notices issued under Section 148 of the Income Tax Act, 1961, and subsequent proceedings. The respondents are the Income Tax Department. The assessment years are not explicitly stated but relate to proceedings initiated under Section 148. The core of the challenge is that the notices and proceedings were issued without conducting faceless assessment as envisaged under Section 144B of the Act, 1961, rendering them without jurisdiction. The petitioners relied on previous judgments of the same court in similar matters.

What were the issues?

1. Whether notices issued under Section 148 of the Income Tax Act, 1961, and subsequent proceedings are liable to be set aside for not adhering to the faceless assessment procedure as mandated by Section 144B of the Act, 1961. Assessee's Contention: The assessee argued that the notices and subsequent proceedings were contrary to the provisions of the Act, specifically Section 144B, which mandates a faceless assessment. They relied on the principles laid down in previous judgments by the Coordinate Bench, such as Jasjit Singh vs. Union of India and Jatinder Singh Bhangu vs. Union of India, which held that circulars or instructions cannot override statutory provisions and that faceless assessment procedures must be followed. Revenue's Contention: The revenue did not present any arguments against the assessee's contentions. The judgment notes that the Senior Standing Counsel accepted notice and was present, but no specific arguments were recorded for the revenue.

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

CWP-26021

143 IN TH Bhupinder K

Income Tax

CORAM:

Present:

SANJEEV P

1.

2. on behalf of 3. present peti CWP No.21 others, dec No.15745 of others, deci under: -1- 1-2024 (O&M)

HE HIGH COURT OF PUNJA CHANDIGAR

CWP Date Kumar Sharma

Officer and Ors.

HON'BLE MR. JUSTICE SAN HON'BLE MR. JUSTICE AL

Mr. B.M. Monga and Mr. Rohit Kaura, Advocates fo Mr. Yogesh Putney, Senior Sta for the respondents-Income Tax

***** PRAKASH SHARMA, J. (Oral)

Notice of motion. Mr. Yogesh Putney, Senior St f the respondents-Income Tax De Both the counsel are ad idem ition stands finally examined a 1509 of 2023 titled as Jasjit S ided on 29.07.2024, and by th f 2024 titled as Jatinder Singh B ided on 19.07.2024. This Court “16. We are in agreement with Coordinate Bench and hold AB AND HARYANA AT RH P-26021-2024 (O&M) of Decision:04.10.2024

..…...Petitioners (s) V/s. …......Respondent(s) 2024.10.15 10:42 I attest to the accuracy and integrity of this document

CWP-26021

-2- 1-2024 (O&M)

instructions by the Board could to override statutory provisio otiose or obsolete. Legislativ financial implications are req strictly and mandatorily. By e contained in Sections 119 and 1 well as Section 144B (7 & 8), be allowed to usurp the legal p satisfaction and convenience c assessees. It also leaves confus taxpayers. In the opinion of th and circulars can be issued on supplementing the statutory pr implementation.

17.

In view of the aforesaid d occasion to distinguish or tak suggested by the learned cou from what has already been h Bench.

18.

Keeping in view the law Coordinate Bench (supra), noti under Section 148 of the proceedings initiated thereafte the faceless assessment as env 144B of the Act, 1961, hav contrary to the provisions of accordingly notices dated 28 20.03.2024 and 30.03.2023 30.03.2023, are set aside for wa

19.

The respondents-revenue w liberty to follow the procedur the Act, 1961 and proceed acco d not have been issued ons or to make them ve enactments having quired to be followed exercising the powers 120 of the Act, 1961 as the authorities cannot provisions to their own ausing hardship to the sion in the minds of the his Court, instructions nly for the purpose of rovisions and for their discussion, there is no ke a different view as unsel for the revenue held by the Coordinate w laid down by the ices issued by the JAO Act, 1961 and the er without conducting visaged under Section ve been found to be of the Act, 1961 and 8.02.2023, 16.03.2023, 3 and order dated ant of jurisdiction. would be, however, at re as laid down under ordingly, if so advised. Manju 2024.10.15 10:42 I attest to the accuracy and integrity of this document

CWP-26021

4.

aforesaid te mutatis mut Jurisdictiona and all cons

5.

October 04 Manju

Whether spe Whether Rep

-3- 1-2024 (O&M)

20.

All the writ petitions are order passed by the Court sha the present order.”

Keeping in view above, we a erms. The observations and or tandis to the present case. Acc al Assessing Officer u/s 148 da sequential proceedings are set asi All pending applications also st [SANJEE , 2024. eaking / reasoned : portable

: allowed. The interim all stand merged with allow this Writ Petition in the rder passed above shall apply cordingly, notice issued by the ated 15.03.2024 (Annexure P-1) ide. tand disposed of accordingly.

EV PRAKASH SHARMA] JUDGE

[ALOK JAIN] JUDGE Yes / No Yes / No e y e ) Manju 2024.10.15 10:42 I attest to the accuracy and integrity of this document

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