CONSOLIDATE REALTORS PRIVATE LIMITED vs. DEPUTY COMMISSIONER OF INCOME TAX AND OTHERS

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CWP/24638/2024HC Punjab & HaryanaPHHC01128147202410 September 2026Bench: MR. JUSTICE DEEPAK SIBAL,MS. JUSTICE RUPINDERJIT CHAHAL3 pages
AI SummaryAllowed

What did the High Court hold?

The High Court, following its own prior decisions in Jasjit Singh and Jatinder Singh Bhangu, held that circulars or instructions issued by the Board cannot override statutory provisions or render them obsolete. Legislative enactments with financial implications must be strictly followed. The Court found that by exercising powers under Sections 119 and 120, as well as Section 144B (7 & 8) of the Act, authorities cannot usurp legal provisions for their convenience, causing hardship and confusion to assessees. Instructions and circulars can only supplement statutory provisions. Consequently, notices issued under Section 148 and subsequent proceedings initiated without conducting faceless assessments as envisaged under Section 144B were found to be contrary to the Act. The Court set aside the notices and orders, including the notice issued by the Jurisdictional Assessing Officer under Section 148A(b) dated 31.03.2024, the order issued under Section 148A(d) dated 27.04.2024, and the notice issued under Section 148 dated 27.04.2024, along with consequential proceedings, for want of jurisdiction. The revenue was granted liberty to follow the prescribed procedure if advised. The writ petition was allowed in these terms.

What were the facts?

The petitioner, Consolidate Realtors Private Limited, filed a writ petition before the High Court of Punjab and Haryana challenging notices and orders issued by the Deputy Income Tax Officer and others. The revenue, represented by Ms. Urvashi Dhugga, Sr. Standing Counsel, accepted notice. Both parties agreed that the issue was concluded by prior judgments of the same High Court in CWP No.21509 of 2023 (Jasjit Singh vs. Union of India and others) decided on 29.07.2024, and CWP No.15745 of 2024 (Jatinder Singh Bhangu vs. Union of India and others) decided on 19.07.2024. The present petition sought to set aside a notice issued under Section 148A(b) dated 31.03.2024, an order under Section 148A(d) dated 27.04.2024, and a notice under Section 148 dated 27.04.2024, along with consequential proceedings.

What were the issues?

1. 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 contrary to the provisions of the Act, 1961? (Question of law and mixed fact and law, turning on Sections 144B and 148 of the Income Tax Act, 1961). Assessee's contention: The assessee, by implication through reliance on prior judgments, argued that the notices and proceedings were invalid because they bypassed the mandatory faceless assessment procedure under Section 144B. The assessee relied on the High Court's decisions in Jasjit Singh and Jatinder Singh Bhangu. Revenue's contention: The revenue, by accepting notice and not presenting a contrary argument, implicitly conceded to the applicability of the prior judgments. The revenue did not record any specific arguments against the assessee's position.

Which sections of the Income-tax Act were involved?

Section 119,Section 120,Section 144B,Section 148,Section 148A

AI-generated summary — verify with the full judgment below

CWP-24638-2024 - 1 - IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 119 CWP-24638-2024

Decided on : 24.09.2024 Consolidate Realtors Private Limited . . . Petitioner(s) Versus Deputy Income Tax Officer and others . . . Respondent(s) CORAM: HON’BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON'BLE MR. JUSTICE SANJAY VASHISTH PRESENT: Mr. Nikhil Goyal, Advocate for the petitioner(s). Ms. Urvashi Dhugga, Sr. Standing Counsel for the respondents – revenue. **** SANJEEV PRAKASH SHARMA

, J. (Oral) 1. Notice of motion. 2. Ms. Urvashi Dhugga, Sr. Standing Counsel, accepts notice for the respondents – revenue. 3. Both the counsel are ad idem that the issue involved in the present petition stands finally examined and concluded by this Court in CWP No.21509 of 2023 titled as Jasjit Singh vs. Union of India and others, decided on 29.07.2024, and by the Coordinate Bench in CWP No.15745 of 2024 titled as Jatinder Singh Bhangu vs. Union of India and others, decided on 19.07.2024. This Court in Jasjit Singh (supra) held as under: “16. We are in agreement with the view taken by the Coordinate Bench and hold that such circular or instructions by the Board could not have been issued to override statutory provisions or to make them otiose or obsolete. Legislative enactments having JAWALA RAM 2024.09.25 18:17 I attest to the accuracy and authenticity of this document

CWP-24638-2024 - 2 - financial implications are required to be followed strictly and mandatorily. By exercising the powers contained in Sections 119 and 120 of the Act, 1961 as well as Section 144B (7 & 8), the authorities cannot be allowed to usurp the legal provisions to their own satisfaction and convenience causing hardship to the assessees. It also leaves confusion in the minds of the taxpayers. In the opinion of this Court, instructions and circulars can be issued only for the purpose of supplementing the statutory provisions and for their implementation. 17. In view of the aforesaid discussion, there is no occasion to distinguish or take a different view as suggested by the learned counsel for the revenue from what has already been held by the Coordinate Bench. 18. Keeping in view the law laid down by the Coordinate Bench (supra), notices issued by the JAO under Section 148 of the Act, 1961 and the proceedings initiated thereafter without conducting the faceless assessment as envisaged under Section 144B of the Act, 1961, have been found to be contrary to the provisions of the Act, 1961 and accordingly notices dated 28.02.2023, 16.03.2023, 20.03.2024 and 30.03.2023 and order dated 30.03.2023, are set aside for want of jurisdiction. 19. The respondents-revenue would be, however, at liberty to follow the procedure as laid down under the Act, 1961 and proceed accordingly, if so advised. 20. All the writ petitions are allowed. The interim order passed by the Court shall stand merged with the present order.” JAWALA RAM 2024.09.25 18:17 I attest to the accuracy and authenticity of this document

CWP-24638-2024 - 3 - 4. Keeping in view above, we allow this Writ Petition in the aforesaid terms. The observations and order passed above shall apply mutatis mutandis to the present case. Accordingly, notice issued by the Jurisdictional Assessing Officer u/s 148A(b) dated 31.03.2024, order issued u/s 148A(d) dated 27.04.2024 and notice issued u/s 148 dated 27.04.2024, as well as consequential proceedings are set aside. 5. All pending applications also stand disposed of accordingly. (SANJEEV PRAKASH SHARMA) JUDGE (SANJAY VASHISTH) JUDGE September 24, 2024 J.Ram Whether speaking/reasoned: Yes/No Whether Reportable: Yes/No JAWALA RAM 2024.09.25 18:17 I attest to the accuracy and authenticity of this document

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