MOHINDER SINGH vs. PR COMMISSIONER OF INCOME TAX JALANDHAR 1

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CWP/21620/2024HC Punjab & HaryanaPHHC01115468202431 August 2024Bench: MR. JUSTICE SANJEEV PRAKASH SHARMA,MRS. JUSTICE RITU TAGORE3 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 emphasized that authorities cannot usurp legal provisions for their convenience, causing hardship to assessees and confusion to taxpayers. Instructions and circulars can only supplement statutory provisions and aid their implementation. Relying on the decisions of coordinate benches in Jasjit Singh and Jatinder Singh Bhangu, the court found that notices issued by the JAO under Section 148 and subsequent proceedings initiated without conducting faceless assessments under Section 144B were contrary to the Act. Consequently, the notices dated 06.04.2023 (under Section 148 and Section 148A(d)) and consequential proceedings were set aside for want of jurisdiction. The revenue was granted liberty to follow the prescribed procedure if advised. The writ petition and pending applications were allowed and disposed of accordingly.

What were the facts?

The petitioner, Mohinder Singh, 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 was represented by a Senior Standing Counsel. The High Court noted that similar issues had been decided by coordinate benches in previous cases, specifically citing Jasjit Singh vs. Union of India and Jatinder Singh Bhangu vs. Union of India. The court was informed that both counsel were in agreement regarding the issue.

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, concerning Sections 148 and 144B of the Income Tax Act, 1961). Assessee's Contention: The proceedings initiated without conducting a faceless assessment as envisaged under Section 144B of the Act are contrary to the provisions of the Act. Revenue's Contention: The revenue's counsel was ad idem with the petitioner's counsel, indicating agreement with the petitioner's stance on the issue.

Which sections of the Income-tax Act were involved?

Section 148,Section 144B,Section 119,Section 120,Section 148A(d)

AI-generated summary — verify with the full judgment below

CWP-21620-2

108

I Mohinder Sin

Pr. Commissi

CORAM: H

Present M

SANJEEV P 1.

N 2.

M behalf of the r 3.

B present petitio No.21509 of decided on 29 2024 titled a decided on 19 “ B c m

[1] 2024 (O&M) IN THE HIGH COURT OF PUN AT CHANDIGA C D ngh

Vs. oner of Income Tax and another

HON’BLE MR. JUSTICE SAN HON’BLE MRS. JUSTICE RI Mr. Rishabh Kapoor, Advocate f (through video conferencing) ***

RAKASH SHARMA, J.(Oral) Notice of motion. Mr. Ranvijay Singh, Sr. Standing revenue. Both the counsel are ad idem on stands finally examined and c f 2023 titled as Jasjit Singh vs 9.07.2024, and by the Coordina as Jatinder Singh Bhangu vs. 9.07.2024. This Court in Jasjit Si “16. We are in agreement with th Bench and hold that such circul could not have been issued to ov make them otiose or obsolete. NJAB AND HARYANA ARH CWP-21620-2024 (O&M) Date of Decision: 31.08.2024

…Petitioner r

…Respondents NJEEV PRAKASH SHARMA ITU TAGORE for the petitioner.

) g Counsel accepts notice on that the issue involved in the concluded by this Court in CWP s. Union of India and others, ate Bench in CWP No.15745 of . Union of India and others, Singh (supra) held as under: he view taken by the Coordinate lar or instructions by the Board verride statutory provisions or to Legislative enactments having

e P , f , e d o g RAJESH KUMAR 2024.09.03 14:17 I attest to the accuracy and authenticity of this order/judgment. Punjab & Haryana High Court, Chandigarh.

[2]

CWP-21620-2024 (O&M)

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. 20. All the writ petitions are allowed. The interim order passed by the Court shall stand merged with the present order.” RAJESH KUMAR 2024.09.03 14:17 I attest to the accuracy and authenticity of this order/judgment. Punjab & Haryana High Court, Chandigarh.

[3]

CWP-21620-2024 (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 dated 06.04.2023, under Section 148A(d) dated 06.04.2023, and consequential proceedings are set aside. 5.

All pending applications also stand disposed of accordingly.

(SANJEEV PRAKASH SHARMA) JUDGE

(RITU TAGORE)

JUDGE 31.08.2024 rajesh 1. Whether speaking/reasoned? : Yes/No 2. Whether reportable?

: Yes/No

RAJESH KUMAR 2024.09.03 14:17 I attest to the accuracy and authenticity of this order/judgment. Punjab & Haryana High Court, Chandigarh.

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