RANDEEP KAUR vs. INCOME TAX OFFICER AND OTHERS

PDF · subscribers
CWP/30870/2024HC Punjab & HaryanaPHHC01158575202418 November 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 otiose. Legislative enactments with financial implications must be strictly followed. The Court found that by exercising powers under Sections 119 and 120 of the Act, 1961, as well as Section 144B (7 & 8), authorities cannot usurp legal provisions for their convenience, causing hardship and confusion to taxpayers. Instructions and circulars can only supplement statutory provisions and aid in their implementation. Therefore, notices issued by the JAO under Section 148 and subsequent proceedings initiated without conducting faceless assessment as envisaged under Section 144B were found to be contrary to the Act. The Court set aside the notices dated 28.02.2023, 16.03.2023, 20.03.2024, and 30.03.2023, and the order dated 30.03.2023, for want of jurisdiction. The respondents were granted liberty to follow the prescribed procedure. The specific notice dated 28.03.2024 issued by the JAO under Section 148 was also set aside.

What were the facts?

The petitioner, Randeep Kaur, filed a writ petition challenging notices issued by the Jurisdictional Assessing Officer (JAO) under Section 148 of the Income Tax Act, 1961, and subsequent proceedings. The respondents are the Income Tax Officer and others. The High Court noted that the issue involved in the present petition was identical to that in CWP No. 21509 of 2023 (Jasjit Singh vs. Union of India and others) and CWP No. 15745 of 2024 (Jatinder Singh Bhangu vs. Union of India and others), both decided on 29.07.2024 and 19.07.2024, respectively. The Court had previously held that circulars issued by the Board could not override statutory provisions. The present petition was filed on 29.10.2024.

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 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, concerning Sections 148 and 144B of the Income Tax Act, 1961). Assessee's Contention: The petitioner relied on the decisions in Jasjit Singh vs. Union of India and others and Jatinder Singh Bhangu vs. Union of India and others, where the Coordinate Bench held that circulars and instructions cannot override statutory provisions and that faceless assessment procedures must be followed. Revenue's Contention: The revenue suggested that there might be grounds to distinguish the present case from the previously decided ones. The judgment does not record any specific arguments or authorities relied upon by the revenue.

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

125

Randeep Kau

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 IN THE HIGH COURT OF PUN AT CHANDIGA C D r

Vs. Officer and others

HON’BLE MR. JUSTICE SAN HON’BLE MR. JUSTICE SAN Mr. Nikhil Goyal, Advocate for t

*** 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 NJAB AND HARYANA ARH CWP-30870-2024 (O&M) Date of Decision: 18.11.2024 …Petitioner …Respondents NJEEV PRAKASH SHARMA NJAY VASHISTH 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 n l d f n a s e d

RAJESH KUMAR 2024.11.19 10:57 I attest the accuracy and authenticity of this order/judgment.

[2] CWP-30870-2024 (O&M)

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. 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. RAJESH KUMAR 2024.11.19 10:57 I attest the accuracy and authenticity of this order/judgment.

[3] CWP-30870-2024 (O&M)

20.

All the writ petitions are allowed. The interim order passed by the Court shall stand merged with the present order.”

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 28.03.2024, and all consequential proceedings are set aside. 5.

All pending applications also stand disposed of accordingly.

(SANJEEV PRAKASH SHARMA) JUDGE

(SANJAY VASHISTH)

JUDGE 18.11.2024 rajesh 1. Whether speaking/reasoned? : Yes/No 2. Whether reportable?

: Yes/No RAJESH KUMAR 2024.11.19 10:57 I attest the accuracy and authenticity of this order/judgment.

More judgments on Section 148

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

Recent GST High Court judgments

Search GST case law →