KIRAN SINGH vs. INCOME TAX OFFICER, WARD 6 (1) CHANDIGARH

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CWP/22807/2024HC Punjab & HaryanaPHHC01120248202409 September 2024Bench: MR. JUSTICE SANJEEV PRAKASH SHARMA,MR. JUSTICE SANJAY VASHISTH3 pages
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What did the High Court hold?

The High Court allowed the writ petition. It held that notices issued by the Jurisdictional Assessing Officer under Section 148 of the Income Tax Act, 1961, and consequential proceedings, including those conducted under faceless assessment as envisaged by Section 144B, were found to be contrary to the provisions of the Act and were therefore set aside for want of jurisdiction. The Court relied on its previous decisions in Jasjit Singh vs. Union of India and others, and Jatinder Singh Bhangu vs. Union of India and others, which held that circulars or instructions by the Board could not override statutory provisions or make them obsolete. Administrative instructions must supplement statutory provisions and be for their implementation. The Court found no reason to take a different view from the Coordinate Bench. The revenue was granted liberty to follow the procedure laid down under the Act and proceed accordingly, if so advised. All pending applications were also disposed of.

What were the facts?

The petitioner, Kiran Singh, challenged notices issued by the Jurisdictional Assessing Officer under Section 148 of the Income Tax Act, 1961, and consequential proceedings, including those conducted under faceless assessment as envisaged by Section 144B. The assessment years are not explicitly stated but the notices are dated between March 15, 2023, and March 30, 2023, with a further notice dated March 20, 2024. The petitioner argued that these proceedings were initiated without jurisdiction and were contrary to the provisions of the Act. The revenue, represented by the Income Tax Department, accepted notice. The High Court was considering the matter based on prior judgments of its Coordinate Benches.

What were the issues?

1. Whether notices issued under Section 148 of the Income Tax Act, 1961, and subsequent proceedings, including those under faceless assessment under Section 144B, were validly initiated and conducted, particularly in light of the High Court's previous pronouncements on the limitations of administrative instructions and circulars versus statutory provisions. (Mixed question of law and fact, concerning Sections 148 and 144B of the Income Tax Act, 1961). Assessee's Contention: The proceedings were initiated without jurisdiction and were contrary to the provisions of the Act, implying that the faceless assessment procedures and the notices themselves were flawed. Revenue's Contention: The revenue, through the Senior Standing Counsel, accepted notice and did not present any arguments against the petitioner's case, implicitly agreeing with the petitioner's stance or at least not opposing it.

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 TH KIRAN SINGH

THE INCOME

CORAM: H

Present: M f

M f

* SANJEEV PR

1.

N 2. M behalf of the r 3. B present petiti CWP No.215 decided on 29 2024 titled a decided on 19

C i o o i m HE HIGH COURT OF PUNJA CHANDIGAR

CWP-2 Date of H

V ME TAX OFFICER, CHANDIGAR HON'BLE MR. JUSTICE SANJ HON'BLE MR. JUSTICE SANJ Mr. Dhruv Mittal and Mr. Rocha for the petitioner. Mr. Yogesh Putney, Senior Stand for the respondents-Income Tax D ***** RAKASH SHARMA, J. (Oral) Notice of motion. Mr. Yogesh Putney, Senior Stan respondents/Income Tax Departm Both the counsel are ad idem ion stands finally examined an 509 of 2023 titled as Jasjit Singh 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 Coordinate Bench and hold t instructions by the Board could n override statutory provisions or t obsolete. Legislative enactmen implications are required to be mandatorily. By exercising the AB AND HARYANA AT RH 22807-2024 (O&M) f Decision:09.09.2024 ..…...Petitioners (s) V/s. RH, AND OTHERS …......Respondent(s) NJEEV PRAKASH SHARMA NJAY VASHISTH ak Singla, Advocates, ding Counsel, Department nding Counsel, accepts notice on ment. that the issue involved in the nd concluded by this Court in h vs. Union of India and others, ate Bench in CWP No.15745 of . Union of India and others, Singh (supra) held as under: the view taken by the that such circular or not have been issued to to make them otiose or nts having financial e followed strictly and powers contained in ) n e n , f , Suresh Kumar 2024.09.10 09:36 I attest to the accuracy and integrity of this document

CWP-22807-202

S S a s a t a s i 1 o s w 1 C u p f o p d 3 f 1 l A 2 o p 4. K aforesaid term mutandis to th 024 (O&M) Page 2 of 3

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 implementation. 17. In view of the aforesaid d occasion to distinguish or take suggested by the learned counse what has already been held by th 18. Keeping in view the law Coordinate Bench (supra), notic under Section 148 of the proceedings initiated thereafter w faceless assessment as envisage of the Act, 1961, have been foun 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-revenue w liberty to follow the procedure a Act, 1961 and proceed according 20. All the writ petitions are order passed by the Court shall present order.” Keeping in view above, we a ms. The observations and order p he present case. Accordingly, no 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 discussion, there is no e a different view as el for the revenue from he Coordinate Bench. w laid down by the ces issued by the JAO Act, 1961 and the without conducting the ed under Section 144B d to be contrary to the nd accordingly notices 23, 20.03.2024 and 03.2023, are set aside would be, however, at as laid down under the gly, if so advised. allowed. The interim stand merged with the allow this Writ Petition in the passed above shall apply mutatis otice issued by the Jurisdictional e s l Suresh Kumar 2024.09.10 09:36 I attest to the accuracy and integrity of this document

CWP-22807-202

Assessing O consequential 5. A

September 9, Ess Kay

Whether speak Whether Repor 024 (O&M) Page 3 of 3

Officer u/s 148 dated 15.03 l proceedings are set aside. All pending applications also stan [SANJEEV , 2024 [SAN

king / reasoned :

Y rtable

Y 3.2024 (Annexure P-1), and nd disposed of accordingly.

V PRAKASH SHARMA] JUDGE

NJAY VASHISTH] JUDGE Yes / No Yes / No d Suresh Kumar 2024.09.10 09:36 I attest to the accuracy and integrity of this document

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