VIKRAM SINGH vs. INCOME TAX OFFICER AND OTHERS

PDF · subscribers
CWP/22813/2024HC Punjab & HaryanaPHHC01120237202409 September 2024Bench: MR. JUSTICE SANJEEV PRAKASH SHARMA,MR. JUSTICE SANJAY VASHISTH3 pages
AI SummaryAllowed

What did the High Court hold?

The High Court allowed the writ petition, setting aside the notices issued under Section 148 of the Income Tax Act, 1961, dated 21.03.2023, 20.03.2023, 28.02.2023, 16.03.2023, and 30.03.2023, along with all consequential proceedings, including those under Section 144B. The court's reasoning was based on the established law laid down by a Coordinate Bench in previous writ petitions (Jasjit Singh and Jatinder Singh Bhangu). The court reiterated that circulars or instructions cannot override statutory provisions or be issued to make them obsolete. It held that authorities cannot usurp legal provisions for their convenience, causing hardship and confusion to assessees. The court found the notices and proceedings to be contrary to the provisions of the Act and circulars, and therefore set aside for want of jurisdiction. The revenue was granted liberty to follow the procedure laid down under the Act, if so advised. All pending applications were also disposed of.

What were the facts?

The petitioners filed a writ petition challenging notices issued under Section 148 of the Income Tax Act, 1961, and subsequent proceedings, including those under Section 144B, for assessment years not explicitly stated in the judgment. The core of the dispute revolves around the validity of these notices and proceedings, particularly in light of faceless assessment procedures. The revenue department, represented by the Senior Standing Counsel, accepted notice. The High Court noted that the issue had been examined and concluded in prior writ petitions, specifically CWP No. 21509 of 2023 (Jasjit Singh vs. Union of India) and CWP No. 15745 of 2023 (Jatinder Singh Bhangu vs. Union of India), decided on 29.07.2024 and 19.07.2024 respectively. The court was informed that the counsel for both parties were in agreement regarding the resolution of the present petition.

What were the issues?

1. Whether notices issued under Section 148 of the Income Tax Act, 1961, and subsequent proceedings, including those under Section 144B, are valid when conducted without adhering to the prescribed statutory procedures and potentially in contravention of faceless assessment principles? Assessee's Contention: The assessee implicitly argues that the notices and proceedings are invalid. This is inferred from the fact that the petition is allowed based on prior judgments that set aside such notices and proceedings for want of jurisdiction and for being contrary to the Act and circulars. The assessee relies on the principle that instructions by the Board cannot override statutory provisions or make them otiose. Revenue's Contention: The revenue's counsel accepted notice and did not appear to contest the petition. The judgment notes that the counsel for the revenue was ad idem with the petitioner, suggesting an agreement with the petitioner's stance or at least no opposition to the relief sought based on the precedent.

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

131 IN TH VIKRAM SIN

INCOME TA AMBALA, HA

CORAM: H

Present: M M

M M f

* SANJEEV PR

1.

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

C i o o i HE HIGH COURT OF PUNJA CHANDIGAR

CWP-2 Date of NGH

V AX OFFICER, WARD-4, AM ARYANA AND OTHERS HON'BLE MR. JUSTICE SANJ HON'BLE MR. JUSTICE SANJ Mr. B.M. Monga, Advocate, and Mr. Rohit Kaura, Advocate for th Mr. Saurabh Kapoor, Senior Stan Ms. Muskaan Gupta, Advocate for the respondent-Income Tax D ***** RAKASH SHARMA, J. (Oral) Notice of motion. Mr. Saurabh Kapoor, Senior St he respondent-Income Tax Depa 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 AB AND HARYANA AT RH 22813-2024 (O&M) f Decision:09.09.2024

..…...Petitioners (s) V/s. MBALA, AAYAKAR BHAWAN,

......Respondent(s) NJEEV PRAKASH SHARMA NJAY VASHISTH d he petitioner. nding Counsel, with Department tanding Counsel, accepts notice artment 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

e e n , f , Suresh Kumar 2024.09.10 09:36 I attest to the accuracy and integrity of this document

CWP-22813-202

m 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

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 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 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 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-22813-202

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 21.03 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

More judgments on Section 148

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

Recent GST High Court judgments

Search GST case law →