SATVINDER KAUR vs. INCOME TAX OFFICER AND OTHERS

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CWP/23410/2024HC Punjab & HaryanaPHHC01123462202413 September 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 thereafter, including those conducted without conducting the faceless assessment as envisaged under Section 144B, were found to be contrary to the provisions of the Act. The Court relied on its previous decisions in Jasjit Singh vs. Union of India and others and Jatinder Singh Bhangu vs. Union of India and others. The Court reiterated that circulars or instructions by the Board cannot override statutory provisions or make them obsolete, and that legislative enactments with financial implications must be followed strictly. The Court found that the authorities could not usurp legal provisions for their own satisfaction or convenience, causing hardship and confusion. Therefore, the notices dated 28.02.2023, 16.03.2023, 20.03.2024, 30.03.2023, and the order dated 30.03.2023, along with the Assessing Officer's notice u/s 148 dated 24.03.2023, were set aside for want of jurisdiction. The revenue was granted liberty to follow the procedure as laid down under the Act and proceed accordingly if so advised. The writ petition was allowed.

What were the facts?

The petitioners, Satvinder Kaur and others, challenged notices issued under Section 148 of the Income Tax Act, 1961, and subsequent proceedings, including those conducted under faceless assessment as envisaged by Section 144B. The assessment years are not explicitly stated but the notices are dated between February 2023 and March 2024. The Assessing Officer's notice under Section 148 is dated 24.03.2023. The petitioners contended that these actions were contrary to the Income Tax Act and its provisions. The revenue, represented by the Income Tax Department, accepted notice. The High Court noted that similar issues had been examined and decided by coordinate benches in other writ petitions.

What were the issues?

1. Whether notices issued under Section 148 of the Income Tax Act, 1961, and subsequent proceedings, including those under Section 144B, are valid when they are found to be contrary to the provisions of the Act and its circulars, particularly when faceless assessment was not conducted properly? Assessee's Contention: The petitioners argued that the notices and subsequent proceedings were contrary to the provisions of the Income Tax Act, 1961, and that the faceless assessment procedures were not followed correctly. They relied on the principle that instructions by the Board cannot override statutory provisions or make them obsolete. Revenue's Contention: The revenue did not present any specific arguments against the petitioners' claims, but their counsel accepted notice and were present. The judgment notes that the counsel for both sides were ad idem regarding the issue being finally examined and concluded by the Court in previous judgments.

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

121 IN TH SATVINDER

INCOME TAX AMBALA, HA

CORAM: H

H

Present: M

M

M M f

* SANJEEV PR

1.

N

2.

M on behalf of th

3.

B present petiti CWP No.215 decided on 29 2024 titled a decided on 19

C i o o i HE HIGH COURT OF PUNJA CHANDIGAR

CWP-2 Date of KAUR

V X OFFICER, WARD-3, PANCH ARYANA AND OTHERS HON'BLE MR. JUSTICE SANJ HON'BLE MR. JUSTICE SANJ Mr. B.M. Monga, Advocate and Mr. Rohit Kaur, Advocate for the Mr. Saurabh Kapoor, Senior Stan Ms. Pridhi Sandhu Junior Standin for the respondent-Income Tax D ***** RAKASH SHARMA, J. (Oral) Notice of motion. Mr. Saurabh Kapoor, Senior St he respondent-Income Tax Depa Both the counsel are ad idem ion stands finally examined an 509 of 2023 titled as Jasjit Singh 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 AB AND HARYANA AT RH 23410-2024 (O&M) f Decision:13.09.2024

..…...Petitioners (s) V/s. 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 e e n , f , Suresh Kumar 2024.09.13 17:53 I attest to the accuracy and integrity of this document

CWP-23410-202

m 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

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K aforesaid term mutandis to th 024 (O&M) mandatorily. By exercising the 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.

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

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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.

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

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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 he present case. Accordingly, no powers contained in 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 otice issued by the Jurisdictional e s l Suresh Kumar 2024.09.13 17:53 I attest to the accuracy and integrity of this document

CWP-23410-202

Assessing O consequential

5.

A

September 13 Ess Kay

Whether speak Whether Repor 024 (O&M) Officer u/s 148 dated 24.03 l proceedings are set aside. All pending applications also stan [SANJEEV 3, 2024 [SAN

king / reasoned :

Y rtable

:

Y 3.2023 (Annexure P-1), and nd disposed of accordingly.

V PRAKASH SHARMA] JUDGE

NJAY VASHISTH] JUDGE Yes / No Yes / No d Suresh Kumar 2024.09.13 17:53 I attest to the accuracy and integrity of this document

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