SHREE GOW RAKSHNI SABHA vs. ASSISTANT COMMISSIONER OF INCOME TAX AND ORS

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CWP/10788/2023HC Punjab & HaryanaPHHC01062982202316 October 2024Bench: MR. JUSTICE SANJEEV PRAKASH SHARMA,MR. JUSTICE SANJAY VASHISTH3 pages
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What did the High Court hold?

The High Court held that notices issued by the JAO under Section 148A(d) of the Income Tax Act, 1961, and the proceedings initiated thereafter without conducting the faceless assessment as envisaged under Section 144B of the Act, 1961, were found to be contrary to the provisions of the Act. The Court agreed with the view taken by a Coordinate Bench that instructions by the Board could not override statutory provisions or make them obsolete. Legislative enactments with financial implications must be followed mandatorily. The authorities cannot usurp legal provisions to their own satisfaction or convenience, causing hardship and confusion to assessees. Circulars and instructions can only supplement statutory provisions for implementation. Therefore, the notices dated 28.02.2023, 16.03.2023, 20.03.2024, and 30.03.2023, along with consequential proceedings, were set aside for want of jurisdiction. The Revenue was granted liberty to follow the procedure laid down under the Act and proceed accordingly. The interim order passed by the Court was merged with the present order.

What were the facts?

The petitioner, Shree Gowrakshni Sabha, filed a writ petition challenging notices issued under Section 148A(d) of the Income Tax Act, 1961, and subsequent proceedings. The petitioner argued that these notices and proceedings were without jurisdiction. The Revenue contended that the notices were issued in accordance with the law. The case was heard by the High Court of Punjab and Haryana. The Court noted that similar issues had been decided in previous writ petitions, specifically CWP-509 of 2023 (Jasjit Singh vs. Union of India) and CWP-15745 of 2024 (Jatinder Singh Bhangu vs. Union of India). The assessment year(s) are not explicitly stated, but the notices under challenge are dated 28.02.2023, 16.03.2023, 20.03.2024, and 30.03.2023.

What were the issues?

1. Whether notices issued under Section 148A(d) of the Income Tax Act, 1961, and subsequent proceedings initiated without conducting faceless assessment as envisaged under Section 144B of the Act, 1961, are contrary to the provisions of the Act and thus without jurisdiction? Assessee's Contention: The assessee argued that the notices and proceedings were without jurisdiction. The judgment does not explicitly detail the assessee's arguments beyond this general statement, but it implies reliance on the principles laid down in previous judgments by the same court. Revenue's Contention: The Revenue contended that the notices were issued in accordance with the law. The judgment does not explicitly detail the Revenue's arguments beyond this general statement, but it mentions that the learned counsel for the revenue suggested distinguishing the present case from prior rulings.

Which sections of the Income-tax Act were involved?

Section 148A,Section 144B,Section 148

AI-generated summary — verify with the full judgment below

CWP-10788-202

261

IN TH Shree Gow Ra Assistant Com CORAM: H

H Present: M

SANJEEV P

1.

Both th petition No.215 decided No.157 and oth held as b i o o 23(O&M)

Page 1 of 3 HE HIGH COURT OF PUNJA CHANDIGAR

akshni Sabha Vs.

mmissioner of Income Tax and o **** 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) 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: “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

AB AND HARYANA AT RH CWP-10788-2023 Date of Decision: 16.10.2024 . . . . Petitioner others . . . . Respondents NJEEV PRAKASH SHARMA NJAY VASHISTH the petitioner. ounsel ) 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) nt with the view taken ld that such circular or not have been issued to to make them otiose or nts having financial

3 4

r s t P , P a ) RASHMI 2024.10.16 17:52 I attest to the accuracy and integrity of this document

CWP-10788-202

i m S S a s a t a s i n s w C u i a A p d 3 f a t i w 23(O&M)

Page 2 of 3 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. 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.”

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 nue would be, however, re as laid down under dingly, if so advised. ns are allowed. The urt shall stand merged

RASHMI 2024.10.16 17:52 I attest to the accuracy and integrity of this document

CWP-10788-202

2.

Keepin terms. mutand Jurisdic Tax A consequ 3. All pen

October 16, 2 Rashmi

1.

Whethe 2. Whethe 23(O&M)

Page 3 of 3 ng in view above, we allow this The observations and order pa dis to the present case. Ac ctional Assessing Officer under Act, 1961 dated 30.03.2023(An uential proceedings are set aside nding applications also stand disp

(SANJ 2024

r speaking/reasoned?

Y r reportable?

s Writ Petition in the aforesaid assed above shall apply mutatis ccordingly, notices issued by Section 148A(d) of the Income nnexure P-3) as well as the e. posed of accordingly. JEEV PRAKASH SHARMA) JUDGE

(SANJAY VASHISTH) JUDGE

Yes/No Yes/No

d s y e e RASHMI 2024.10.16 17:52 I attest to the accuracy and integrity of this document

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