AJITINDER SINGH MOFAR vs. INCOME TAX OFFICER AND OTHERS

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CWP/23123/2024HC Punjab & HaryanaPHHC01120862202411 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 allowed the writ petition. It held that notices issued under Section 148 of the Income Tax Act, 1961, and subsequent proceedings, including those conducted under Section 144B (7 & 8) without conducting the assessment in a faceless manner as envisaged by the Act, 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 Jatinder Singh Bhangu vs. Union of India. The reasoning was that instructions by the Board cannot override statutory provisions, and legislative enactments with financial implications must be followed mandatorily. The Court found that authorities cannot usurp legal provisions for their convenience, causing hardship and confusion. Consequently, the notices dated 19.04.2024 (Annexure P-1), 28.02.2023, 16.03.2023, 20.03.2023, 30.03.2023, and 30.03.2024, along with all consequential proceedings and pending applications, were set aside for want of jurisdiction. The revenue was granted liberty to follow the procedure laid down under the Act if so advised.

What were the facts?

The petitioners, Ajitinder Singh Mofar and others, challenged notices issued under Section 148 of the Income Tax Act, 1961, and subsequent proceedings, including those under Section 144B, by the Assessing Officer. The assessment years are not explicitly stated. The core of the challenge was that these proceedings were initiated and conducted without adhering to the prescribed statutory procedures, particularly concerning faceless assessments. The revenue, represented by the Income Tax Department, accepted notice. The High Court noted that similar issues had been decided by its coordinate benches in previous writ petitions, specifically CWP No. 21509 of 2023 (Jasjit Singh vs. Union of India) and CWP No. 15745 of 2024 (Jatinder Singh Bhangu vs. Union of India).

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 conducted without adhering to statutory provisions, particularly concerning faceless assessments? (Question of law and mixed fact and law, turning on Section 148 and Section 144B). Assessee's Contention: The assessee argued that the proceedings were initiated and conducted contrary to the provisions of the Act, specifically mentioning faceless assessments and the jurisdictional limitations of authorities. They relied on the decisions of coordinate benches of the High Court in similar cases. Revenue's Contention: The revenue, through its counsel, accepted notice and did not present any arguments against the assessee's position. The judgment states that both counsel were 'ad idem' that the issue had been finally examined and concluded by the High Court in prior 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

129 IN TH AJITINDER S

INCOME TAX MANSA, PUN

CORAM: H

H

Present: M M

M M f

* SANJEEV PR

1.

N

2.

M behalf of the r

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 SINGH MOFAR

V AX OFFICER, WARD-1(4), MA NJAB AND OTHERS

HON'BLE MR. JUSTICE SANJ HON'BLE MR. JUSTICE SANJ Mr. B.M. Monga, Advocate, and Mr. Rohit Kaura, Advocate for th Mr. Yogesh Putney, Senior Stand Mr. Vaibhav Gupta, Standing Co for the respondent-Income Tax D ***** RAKASH SHARMA, J. (Oral) Notice of motion. Mr. Yogesh Putney, Senior Stan respondent-Income Tax Departm 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 23123-2024 (O&M) f Decision:11.09.2024 ..…...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 n e n , f , Suresh Kumar 2024.09.12 18:22 I attest to the accuracy and integrity of this document

CWP-23123-202

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

4.

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.

17.

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.

19.

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 2024.09.12 18:22 I attest to the accuracy and integrity of this document

CWP-23123-202

Assessing O consequential

5.

A

September 1 Ess Kay

Whether speak Whether Repor 024 (O&M) Officer u/s 148 dated 19.04 l proceedings are set aside. All pending applications also stan [SANJEEV 1, 2024 [SAN

king / reasoned :

Y rtable

:

Y 4.2024 (Annexure P-1), and nd disposed of accordingly.

V PRAKASH SHARMA] JUDGE

NJAY VASHISTH] JUDGE Yes / No Yes / No d Suresh Kumar 2024.09.12 18:22 I attest to the accuracy and integrity of this document

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