PALAVI vs. UNION OF INDIA AND OTHERS

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CWP/23392/2024HC Punjab & HaryanaPHHC01123250202413 September 2024Bench: MR. JUSTICE SANJEEV PRAKASH SHARMA,MR. JUSTICE SANJAY VASHISTH3 pages
AI SummaryAllowed

What did the High Court hold?

The High Court held that instructions issued by the Board (presumably referring to administrative instructions for faceless assessment) cannot override statutory provisions or render them obsolete. Legislative enactments with financial implications must be followed strictly. The Court reiterated its view from previous judgments, including Jasjit Singh vs. Union of India, that administrative instructions cannot usurp legal provisions for the convenience of authorities, causing hardship and confusion to assessees. The Court found that notices issued under Section 148 and subsequent proceedings under Section 144B, initiated without conducting the faceless assessment as envisaged, were contrary to the provisions of the Act. Consequently, the notices dated 21.03.2023, 28.02.2023, 16.03.2023, 20.03.2023, 30.03.2023, and 30.03.2024 were set aside for want of jurisdiction. The revenue was granted liberty to follow the procedure laid down under the Act if so advised. The writ petition was allowed, and interim orders stood merged with the final order.

What were the facts?

The petitioners filed a writ petition before the High Court of Punjab and Haryana challenging notices issued by the Assessing Officer under Section 148 of the Income Tax Act, 1961, and subsequent proceedings initiated under Section 144B. The challenge was based on the argument that these proceedings were conducted without adhering to the faceless assessment scheme as envisaged by the Act. The revenue, represented by the Income Tax Department, accepted notice. The Court noted that similar issues had been decided by the same High Court in previous writ petitions, specifically CWP No. 21509 of 2023 and CWP No. 15745 of 2023. The present petition was filed in CWP No. 23392 of 2024.

What were the issues?

1. Whether notices issued under Section 148 of the Income Tax Act, 1961, and subsequent faceless assessment proceedings under Section 144B of the Act, initiated without adhering to the prescribed procedure, are without jurisdiction and liable to be set aside. Assessee's Contention: The assessee argued that the faceless assessment proceedings, as envisaged by Section 144B of the Act, were not followed, rendering the notices and subsequent actions void for want of jurisdiction. They relied on the principles laid down in previous judgments by the same High Court. Revenue's Contention: The revenue, through its counsel, accepted notice and did not present any arguments against the assessee's position, indicating agreement with the assessee's stance or the precedent set by the Court.

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

112 IN TH PALAVI

UNION OF IN

CORAM: H

Present: M

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 S HE HIGH COURT OF PUNJA CHANDIGAR

CWP-2 Date of

V NDIA AND OTHERS

HON'BLE MR. JUSTICE SANJ HON'BLE MR. JUSTICE SANJ Mr. Chetan Jain, Advocate for th Mr. Ranvijay Singh, Senior Stand for the respondents/Income Tax D ***** RAKASH SHARMA, J. (Oral) Notice of motion. Mr. Ranvijay Singh, Senior Stan respondent-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 Sections 119 and 120 of the A AB AND HARYANA AT RH 23392-2024 (O&M) f Decision:13.09.2024

..…...Petitioners (s) V/s.

......Respondent(s) NJEEV PRAKASH SHARMA NJAY VASHISTH he petitioner. 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 Act, 1961 as well as n e n , f , Suresh Kumar 2024.09.13 16:52 I attest to the accuracy and integrity of this document

CWP-23392-202

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

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 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 2024.09.13 16:52 I attest to the accuracy and integrity of this document

CWP-23392-202

Assessing O consequential 5. A

September 13 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 3, 2024 [SAN

king / reasoned :

Y rtable

Y 3.2024 (Annexure P-4), and nd disposed of accordingly.

V PRAKASH SHARMA] JUDGE

NJAY VASHISTH] JUDGE Yes / No Yes / No d Suresh Kumar 2024.09.13 16:52 I attest to the accuracy and integrity of this document

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