NANDI RICE AND GENERAL MILLS vs. INCOME TAX OFFICER AND OTHERS

PDF · subscribers
CWP/22815/2024HC Punjab & HaryanaPHHC01119970202409 September 2024Author: MR. JUSTICE SANJEEV PRAKASH SHARMA,MR. JUSTICE SANJAY VASHISTH3 pages
AI SummaryAllowed

What did the High Court hold?

The Tribunal held that circulars or instructions issued by the Board cannot override statutory provisions or make them obsolete. Such instructions, especially those with financial implications, must be mandatorily followed. Authorities cannot use these instructions to usurp legal provisions for their convenience, causing hardship and confusion to assessees. The court reiterated its agreement with the view of the Coordinate Bench that instructions can only supplement statutory provisions for implementation. Consequently, notices issued by the JAO under Section 148 of the Income Tax Act, 1961, and subsequent proceedings initiated without conducting faceless assessments under Section 144B, were found to be contrary to the Act and were set aside for want of jurisdiction. The revenue was granted liberty to follow the prescribed procedure if so advised. The interim orders were merged with the final order.

What were the facts?

The petitioners, Nandi Rice and General Mills, challenged notices issued by the Jurisdictional Assessing Officer under Section 148 of the Income Tax Act, 1961, and subsequent proceedings, including those under Section 144B. The assessment years are not explicitly stated. The revenue, represented by the Income Tax Department, accepted notice. The High Court noted that the issue was identical to previous cases decided by a Coordinate Bench, specifically CWP No. 509 of 2023 (Jasjit Singh vs. Union of India) and CWP No. 15745 of 2023 (Jatinder Singh Bhangu vs. Union of India), both decided on July 29, 2024. The court was informed that both counsel were in agreement regarding the final examination of the petition.

What were the issues?

1. Whether circulars or instructions issued by the Board can override statutory provisions or make them obsolete, particularly when they have financial implications that are required to be mandatorily followed, and whether such instructions can be used to usurp legal provisions for the convenience of assessees, causing hardship and confusion. 2. Whether notices issued under Section 148 of the Income Tax Act, 1961, and subsequent proceedings initiated without conducting a faceless assessment as envisaged under Section 144B of the Act, are liable to be set aside for want of jurisdiction, being contrary to the provisions of the Act. Assessee's Contention: The assessee implicitly argued that the notices and proceedings were invalid based on the principles laid down in the cited Coordinate Bench judgments. The revenue did not present any arguments against the assessee's position, having accepted notice and agreeing that the matter was concluded by 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

133 IN TH NANDI RICE

INCOME TA CHIRANJEEV

CORAM: H

H

Present: 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 HE HIGH COURT OF PUNJA CHANDIGAR

CWP-2 Date of E AND GENERAL MILLS V AX OFFICER, WARD-1, KAITH V COLONY, KAITHAL, HARYAN HON'BLE MR. JUSTICE SANJ HON'BLE MR. JUSTICE SANJ (Through Video Conferencin Mr. B.M. Monga, Advocate, and Mr. Rohit Kaura, Advocate for th Ms. Gauri Neo Rampal, Senior S for the respondent-Income Tax D ***** RAKASH SHARMA, J. (Oral) Notice of motion. Ms. Gauri Neo Rampal, Senior S 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 AB AND HARYANA AT RH 22815-2024 (O&M) f Decision:09.09.2024

..…...Petitioners (s) V/s. HAL, INCOME TAX OFFICE, NA, AND OTHERS

......Respondent(s) NJEEV PRAKASH SHARMA NJAY VASHISTH ng/Hybrid Mode) 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 e n , f , Suresh Kumar 2024.09.10 09:36 I attest to the accuracy and integrity of this document

CWP-22815-202

i 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 024 (O&M) implications are required to be 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

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 e followed strictly and 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 e s Suresh Kumar 2024.09.10 09:36 I attest to the accuracy and integrity of this document

CWP-22815-202

mutandis to th Assessing O consequential

5.

A

September 9, Ess Kay

Whether speak Whether Repor 024 (O&M) he present case. Accordingly, no Officer u/s 148 dated 30.03 l proceedings are set aside. All pending applications also stan [SANJEEV , 2024 [SAN

king / reasoned :

Y rtable

:

Y otice issued by the Jurisdictional 3.2024 (Annexure P-1), and nd disposed of accordingly.

V PRAKASH SHARMA] JUDGE

NJAY VASHISTH] JUDGE Yes / No Yes / No l d Suresh Kumar 2024.09.10 09:36 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 →

Latest GST High Court judgments

Search GST case law →