MEGHA GUPTA vs. INCOME TAX OFFICER AND OTHERS

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CWP/28293/2024HC Punjab & HaryanaPHHC01142683202419 October 2024Bench: MR. JUSTICE SANJEEV PRAKASH SHARMA,MR. JUSTICE SANJAY VASHISTH3 pages
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What did the High Court hold?

The Tribunal held that circulars or instructions issued by the Board cannot override statutory provisions or make them otiose. Legislative enactments with financial implications must be followed strictly and mandatorily. By exercising powers under Sections 119 and 120 of the Act, as well as Section 144B (7 & 8), authorities cannot usurp legal provisions for their convenience, causing hardship and confusion to assessees. Instructions and circulars can only supplement statutory provisions for implementation. Therefore, notices issued by the JAO under Section 148 of the Act, 1961, and subsequent proceedings, including faceless assessments under Section 144B, were found to be contrary to the provisions of the Act, 1961. Consequently, notices dated 28.02.2023, 20.03.2023, 16.03.2023, 30.03.2023, and 30.03.2024 were set aside for want of jurisdiction. The revenue is at liberty to follow the procedure laid down under the Act, 1961, if so advised. All pending applications were also disposed of.

What were the facts?

The petitioner, Megha Gupta, has filed a writ petition before the High Court of Punjab and Haryana at Chandigarh challenging notices issued under Section 148 of the Income Tax Act, 1961, and subsequent proceedings. The revenue, represented by the Income Tax Officer and others, has accepted notice. Both parties agreed that the issue in the present petition has been finally examined and concluded by the same court in previous writ petitions, specifically CWP-215509 of 2023 (Jasjit Singh vs. Union of India and others) decided on 29.07.2024, and CWP-157745 of 2024 (Jatinder Singh Bhangu vs. Union of India and others) decided on 19.07.2024. The court was presented with the findings of these prior decisions.

What were the issues?

1. Whether notices issued under Section 148 of the Income Tax Act, 1961, and subsequent proceedings, including faceless assessments under Section 144B, are valid when found to be contrary to the provisions of the Act and the instructions issued by the JAO? Assessee's Contention: The petitioner relies on the decisions of a Coordinate Bench in CWP-215509 of 2023 and CWP-157745 of 2024, which held that notices issued under Section 148 and subsequent faceless assessment proceedings were contrary to the Act and therefore liable to be set aside. The petitioner implicitly argues that the present case is identical and should follow the same precedent. Revenue's Contention: The revenue's counsel accepted notice and agreed that the issue had been concluded by previous judgments. The revenue did not present any arguments to distinguish the present case from the precedents cited by the petitioner. The judgment notes that the learned counsel for the revenue did not suggest any reason to take a different view from the Coordinate Bench.

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

CWP-28293-202 106 IN TH MEGHA GUP INCOME TA CORAM: H

H Present: M

SANJEEV P

1.

Notice 2. Mr. Va respond 3. Both th petition No.215 decided No.157 and oth held as

24 (O&M) Page 1 of 3 HE HIGH COURT OF PUNJA CHANDIGAR

PTA Vs.

AX OFFICER AND OTHERS **** HON’BLE MR. JUSTICE SAN HON’BLE MR. JUSTICE SAN **** Mr. Nikhil Goyal, Advocate for t Mr. Varun Issar, Sr. Standing Co for the respondents/Revenue. **** RAKASH SHARMA, J.(Oral) of motion. arun Issar, Sr. Standing Couns dents/Revenue. he counsel are ad idem that the n stands finally examined and co 509 of 2023 titled as Jasjit Singh d on 29.07.2024, and by the 745 of 2024 titled as Jatinder Sin hers, decided on 19.07.2024. Th under: AB AND HARYANA AT RH CWP-28293-2024 (O&M) Date of Decision: 19.10.2024 . . . . Petitioner . . . . Respondents NJEEV PRAKASH SHARMA NJAY VASHISTH the petitioner. ounsel ) sel accepts notice on behalf of e issue involved in the present oncluded by this Court in CWP h vs. Union of India and others, e Coordinate Bench in CWP ngh Bhangu vs. Union of India his Court in Jasjit Singh (supra)

) 4 r s f t P , P a ) MOHIT GOYAL 2024.10.22 09:48 I attest to the accuracy and integrity of this document

CWP-28293-202 b i o o i m S S a s a t a s i n s w C u i a A p d 3 f

24 (O&M) Page 2 of 3 “16. We are in agreemen by the Coordinate Bench and hol nstructions by the Board could n override statutory provisions or t obsolete. Legislative enactmen mplications 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 mplementation. 17. In view of the aforesa no occasion to distinguish or ta suggested by the learned counse what has already been held by th 18. Keeping in view the Coordinate Bench (supra), notic under Section 148 of the Act, 196 nitiated thereafter without con assessment as envisaged under Act, 1961, have been found to provisions of the Act, 1961 an dated 28.02.2023, 16.03.202 30.03.2023 and order dated 30. for want of jurisdiction. nt with the view taken ld that such circular or not have been issued to to make them otiose or nts having financial 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 aid discussion, there is ake a different view as el for the revenue from he Coordinate Bench. law laid down by the ces issued by the JAO 61 and the proceedings nducting the faceless r Section 144B of the o be contrary to the d accordingly notices 23, 20.03.2024 and 03.2023, are set aside

MOHIT GOYAL 2024.10.22 09:48 I attest to the accuracy and integrity of this document

CWP-28293-202 a t i w 4. Keepin terms. mutand issued Jurisdic proceed 5. All pen

October 19, 20 Mohit goyal 1. Whethe 2. Whethe

24 (O&M) Page 3 of 3 19. The respondents-reven at liberty to follow the procedur the Act, 1961 and proceed accord 20. All the writ petition nterim order passed by the Cou with the present order.”

ng in view above, we allow this The observations and order pa dis to the present case. Accord under Section 148 of the ctional Assessing Officer as dings are set aside. nding applications also stand disp

(SANJ 024 r speaking/reasoned?

Y r reportable?

Y nue would be, however, re as laid down under dingly, if so advised. ns are allowed. The urt shall stand merged s Writ Petition in the aforesaid assed above shall apply mutatis dingly, notice dated 30.03.2024 Income Tax Act, 1961 by s well as the consequential posed of accordingly. JEEV PRAKASH SHARMA) JUDGE

(SANJAY VASHISTH) JUDGE Yes/No Yes/No

d s 4 y l MOHIT GOYAL 2024.10.22 09:48 I attest to the accuracy and integrity of this document

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