RUPINDER KAUR MAHL vs. INCOME TAX OFFICER

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CWP/28511/2024HC Punjab & HaryanaPHHC01143785202421 October 2024Bench: MR. JUSTICE SANJEEV PRAKASH SHARMA,MR. JUSTICE SANJAY VASHISTH3 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. Legislative enactments with financial implications must be strictly followed. The Court found that authorities cannot usurp legal provisions for their convenience, causing hardship to assessees, and that instructions and circulars can only supplement statutory provisions. Consequently, notices issued by the JAO under Section 148 and subsequent proceedings initiated without conducting faceless assessment under Section 144B were found to be contrary to the Act and set aside for want of jurisdiction. The Court specifically set aside notices dated 24.03.2024 and all consequential proceedings. 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, Rupinder Kaur Mahl, filed a writ petition before the High Court of Punjab and Haryana at Chandigarh. The petition challenged actions taken by the Income Tax Officer and others. The core issue revolved around assessment proceedings initiated without adhering to the faceless assessment scheme. The High Court noted that the substantial issue had been previously examined and concluded in similar cases, specifically 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 was filed in 2024, and the respondents accepted notice.

What were the issues?

1. Whether notices issued by the Jurisdictional Assessing Officer (JAO) under Section 148 of the Income Tax Act, 1961, and subsequent proceedings initiated without conducting faceless assessment as envisaged under Section 144B of the Act, are contrary to the provisions of the Act and liable to be set aside for want of jurisdiction? Assessee's Contention: The assessee implicitly argued that the assessment proceedings were invalid because they bypassed the mandatory faceless assessment procedure. The petitioner relied on the High Court's previous decisions in Jasjit Singh and Jatinder Singh Bhangu, which had already addressed and decided this issue in favor of the assessees. Revenue's Contention: The revenue, through its standing counsel, accepted notice. While no specific arguments were recorded for the revenue in this particular judgment, the reference to the previous judgments implies that the revenue may have attempted to distinguish the present case or argue for a different view, which was rejected by the Court.

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

128 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CWP-28511-2024 (O&M) Date of Decision: 21.10.2024 Rupinder Kaur Mahl …Petitioner Vs. Income Tax Officer and others

…Respondents CORAM: HON’BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON’BLE MR. JUSTICE SANJAY VASHISTH Present: Mr. Vishav Bharti Gupta, Advocate; Mr. Ubhai Bharti Gupta, Advocate; Ms. Mamta Gupta, Advocate and Ms. Uma Bharti, Advocate for the petitioner.

SANJEEV PRAKASH SHARMA, J.(Oral) 1. Notice of motion. 2. Mr. Ranvijay Singh, Sr. Standing Counsel, accepts notice on behalf of respondent No.1. 3. Mr. Yogesh Putney, Sr. Standing Counsel and Mr. Vaibhav Gupta, Standing Counsel accept notice on behalf of respondent Nos.2 and 3. 4. Learned counsel for the parties are ad idem that the substantial 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: JOYTI RANI 2024.10.23 17:42 I attest to the accuracy and integrity of this document

[2] CWP-28511-2024 (O&M) “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 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. JOYTI RANI 2024.10.23 17:42 I attest to the accuracy and integrity of this document

[3] CWP-28511-2024 (O&M) 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.” 5. 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 24.03.2024 and all consequential proceedings are set aside. 6. All pending applications also stand disposed of accordingly. (SANJEEV PRAKASH SHARMA) JUDGE (SANJAY VASHISTH ) JUDGE 21.10.2024 joyti 1. Whether speaking/reasoned? : Yes/No 2. Whether reportable? : Yes/No JOYTI RANI 2024.10.23 17:42 I attest to the accuracy and integrity of this document

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