BALJEET KUMAR vs. INCOME TAX OFFICER AND OTHERS

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CWP/23096/2024HC Punjab & HaryanaPHHC01120995202411 September 2024Bench: MR. JUSTICE SANJEEV PRAKASH SHARMA,MR. JUSTICE SANJAY VASHISTH3 pages
AI SummaryAllowed

What did the High Court hold?

The High Court held that notices issued under Section 148 of the Income Tax Act, 1961, and subsequent proceedings initiated without conducting the assessment under Section 144B of the Act, were contrary to the provisions of the Act. The Court agreed with the view taken by a Coordinate Bench that circulars or instructions issued by the Board could not override statutory provisions or be issued to make them otiose. The Court emphasized that legislative enactments with financial implications must be followed strictly and mandatorily. It observed that authorities cannot usurp legal provisions to their own satisfaction or convenience, causing hardship to assessees and confusion. Therefore, the notices dated 22.03.2023, 28.02.2023, 16.03.2023, 20.03.2023, and 30.03.2023, along with consequential proceedings, were set aside for want of jurisdiction. The revenue was granted liberty to follow the procedure laid down under the Act. The writ petition was allowed, and the interim order stood merged with the present order.

What were the facts?

The petitioners, Baljeet Kumar and others, challenged notices issued by the Assessing Officer under Section 148 of the Income Tax Act, 1961, and subsequent proceedings initiated under the faceless assessment scheme. The assessment years are not explicitly stated. The core issue revolves around the validity of these notices and proceedings, particularly in light of alleged procedural irregularities and the applicability of certain instructions or circulars. The matter was brought before the High Court of Punjab and Haryana. The revenue, represented by the Income Tax Department, accepted notice. The court noted that similar issues had been examined in previous writ petitions, including Jasjit Singh vs. Union of India and Jatinder Singh Bhangu vs. Union of India, decided on 29.07.2024.

What were the issues?

1. Whether notices issued under Section 148 of the Income Tax Act, 1961, and subsequent faceless assessment proceedings initiated under Section 144B of the Act are valid when they allegedly do not adhere to statutory provisions and established procedures, leading to hardship and confusion for assessees? Assessee's Contention: The assessee argued that the notices and faceless assessment proceedings were contrary to the provisions of the Act and were issued without jurisdiction. They relied on the principle that instructions and circulars cannot override statutory provisions or make them obsolete, and that legislative enactments with financial implications must be followed mandatorily. The assessee's argument implicitly suggests that the faceless assessment mechanism, as applied in this case, may have usurped legal provisions or caused undue hardship. Revenue's Contention: The revenue, through its counsel, accepted notice. The judgment does not record specific arguments made by the revenue, but it notes that the counsel for the revenue was present and accepted notice. The court's decision was based on its prior pronouncements in similar cases.

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

111 IN TH BALJEET KU

INCOME TA AMBALA, HA

CORAM: 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 UMAR

V AX OFFICER, WARD-1, AM ARYANA 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. Saurabh Kapoor, Senior Stan Ms. Pridhi Sandhu, Junior Standi 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 23096-2024 (O&M) f Decision:11.09.2024

..…...Petitioners (s) V/s. MBALA, AAYAKAR BHAWAN,

......Respondent(s) NJEEV PRAKASH SHARMA NJAY VASHISTH d he petitioner. nding Counsel, with ing Counsel, Department tanding Counsel, accepts notice artment that the issue involved in the nd concluded by this Court in h vs. 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

e e n , f , Suresh Kumar 2024.09.11 16:48 I attest to the accuracy and integrity of this document

CWP-23096-202

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) Page 2 of 3

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 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 2024.09.11 16:48 I attest to the accuracy and integrity of this document

CWP-23096-202

Assessing O consequential 5. A

September 1 Ess Kay

Whether speak Whether Repor 024 (O&M) Page 3 of 3

Officer u/s 148 dated 22.03 l proceedings are set aside. All pending applications also stan [SANJEEV 1, 2024 [SAN

king / reasoned :

Y rtable

Y 3.2024 (Annexure P-1), and nd disposed of accordingly.

V PRAKASH SHARMA] JUDGE

NJAY VASHISTH] JUDGE Yes / No Yes / No d Suresh Kumar 2024.09.11 16:48 I attest to the accuracy and integrity of this document

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