RAJINDER KUMAR vs. INCOME TAX OFFICER

PDF · subscribers
CWP/26105/2024HC Punjab & HaryanaPHHC01135414202404 October 2024Bench: MR. JUSTICE SANJEEV PRAKASH SHARMA,MR. JUSTICE ALOK JAIN3 pages
AI SummaryAllowed

What did the High Court hold?

The High Court held that circulars or instructions issued by the Board cannot override statutory provisions or render them obsolete. The Court agreed with the view taken by a Coordinate Bench that legislative enactments must be followed strictly and mandatorily. Powers under Sections 119, 120, and 144B (7 & 8) of the Act cannot be used to usurp legal provisions for convenience, causing hardship and confusion to assessees. Instructions and circulars can only supplement statutory provisions for their implementation. Consequently, notices issued by the JAO under Section 148 and proceedings initiated thereafter, without conducting the faceless assessment under Section 144B, were found to be contrary to the Act. The notices dated 27.03.2024 and all consequential proceedings were set aside for want of jurisdiction. The revenue was granted liberty to follow the prescribed procedure if advised. The Court allowed the writ petition in terms of the prior judgments.

What were the facts?

The petitioner, Rajesh Kumar, filed a writ petition before the Punjab and Haryana High Court challenging notices issued by the Jurisdictional Assessing Officer (JAO) under Section 148 of the Income Tax Act, 1961, and consequential proceedings. The petitioner argued that these actions were taken without conducting a faceless assessment as envisaged under Section 144B of the Act. The revenue accepted notice and did not present separate arguments. The High Court noted that the issue was identical to previously decided cases, specifically CWP No. 21509 of 2023 (Jasjit Singh vs. Union of India) decided on July 29, 2024, and CWP No. 1574 of 2024 (Jatinder Singh Bhangu vs. Union of India) decided on July 19, 2024.

What were the issues?

1. Whether notices issued by the JAO under Section 148 of the Income Tax Act, 1961, and subsequent proceedings initiated without conducting a faceless assessment as per Section 144B of the Act, are valid and in accordance with the law? (Question of law and mixed fact and law, turning on Sections 148 and 144B of the Income Tax Act, 1961). Assessee's Contention: The assessee contended that the notices and proceedings were invalid because they bypassed the mandatory faceless assessment procedure stipulated under Section 144B of the Act. Revenue's Contention: The judgment records no specific arguments from the revenue. However, it notes that the revenue accepted notice and the substantial issue was already examined and concluded by the 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

171

I Rajinder Kum

Income Tax O

CORAM: H

Present M

SANJEEV P 1.

N 2.

M behalf of the r 3.

L issue involved by this Court India and oth CWP No.1574 and others, de under: “ B c m f IN THE HIGH COURT OF PUN AT CHANDIGA C D mar

Vs. Officer & Ors.

HON’BLE MR. JUSTICE SAN HON’BLE MR. JUSTICE ALO Mr. Vishav Bharti Gupta, Advoc ***

RAKASH SHARMA, J.(Oral) Notice of motion. Mr. Yogesh Putney, Sr. Standi revenue. Learned counsel for the parties d in the present petition stands f in CWP No.21509 of 2023 title hers, decided on 29.07.2024, an 745 of 2024 titled as Jatinder Sin ecided on 19.07.2024. This Cour “16. We are in agreement with th Bench and hold that such circul could not have been issued to ove make them otiose or obsolete. financial implications are requi NJAB AND HARYANA ARH CWP-26105-2024 (O&M) Date of Decision: 04.10.2024

…Petitioner

…Respondents NJEEV PRAKASH SHARMA OK JAIN cate for the petitioner. ) ing Counsel, accepts notice on are ad idem that the substantial finally examined and concluded ed as Jasjit Singh vs. Union of nd by the Coordinate Bench in ngh Bhangu vs. Union of India rt in Jasjit Singh (supra) held as he view taken by the Coordinate lar or instructions by the Board erride statutory provisions or to Legislative enactments having ired to be followed strictly and

n l d f n a s e d

g d RAJESH KUMAR 2024.10.14 11:17 I attest to the accuracy and authenticity of this order/judgment. Punjab & Haryana High Court, Chandigarh.

[2]

CWP-26105-2024 (O&M)

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.”

RAJESH KUMAR 2024.10.14 11:17 I attest to the accuracy and authenticity of this order/judgment. Punjab & Haryana High Court, Chandigarh.

[3]

CWP-26105-2024 (O&M)

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 under Section 148 of the Income Tax Act, dated 27.03.2024 and all consequential proceedings are set aside. 5.

All pending applications also stand disposed of accordingly.

(SANJEEV PRAKASH SHARMA) JUDGE

(ALOK JAIN)

JUDGE 04.10.2024 rajesh

1.

Whether speaking/reasoned? : Yes/No 2. Whether reportable?

: Yes/No RAJESH KUMAR 2024.10.14 11:17 I attest to the accuracy and authenticity of this order/judgment. Punjab & Haryana High Court, Chandigarh.

More judgments on Section 148

All 35,022 judgments and leading authorities on Section 148 →

Recent GST High Court judgments

Search GST case law →