SHREE GOW RAKSHNI SABHA (REGD) vs. ASSISTANT COMMISSIONER OF INCOME TAX AND OTHERS

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CWP/23420/2024HC Punjab & HaryanaPHHC01121804202413 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 held that instructions issued by the Board, including those related to faceless assessment, cannot override statutory provisions or make them obsolete. Legislative enactments with financial implications must be followed strictly and mandatorily. The court found that the notices issued under Section 148 of the Income Tax Act, 1961, and the subsequent proceedings initiated under Section 144B, including faceless assessments, were contrary to the provisions of the Act. Therefore, the notices dated 28.02.2023, 16.03.2023, 20.03.2024, 30.03.2023, and the Assessing Officer's notice dated 25.04.2023 under Section 148 were set aside for want of jurisdiction. The Revenue was granted liberty to follow the prescribed procedure if advised. The ratio decidendi is that administrative instructions cannot supersede statutory law, and procedural deviations that affect jurisdiction will render proceedings invalid.

What were the facts?

The petitioners, Shree Gow Rakshni Sabha (Regd.), filed a writ petition challenging notices issued under Section 148 of the Income Tax Act, 1961, and subsequent proceedings initiated under Section 144B. The assessment years are not explicitly stated but the notices are dated between February 2023 and April 2024. The core issue revolves around the validity of these notices and proceedings, particularly in light of faceless assessment procedures. The Revenue, represented by the Assistant Commissioner of Income Tax, was the respondent. The High Court noted that similar issues had been decided by a Coordinate Bench in previous writ petitions.

What were the issues?

1. Whether notices issued under Section 148 of the Income Tax Act, 1961, and subsequent proceedings under Section 144B, including faceless assessments, are valid when they allegedly override statutory provisions or render them otiose, as per the assessee's contention. The assessee argues that instructions by the Board cannot override statutory provisions and that financial implications require strict adherence to legislative enactments. The Revenue, through its counsel, did not present specific arguments but acknowledged being ad idem with the court's previous findings on similar matters. 2. Whether the notices and consequential proceedings are liable to be set aside for want of jurisdiction, based on the assessee's submission that the faceless assessment procedures were not followed correctly, thus violating the Act's provisions.

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

129 IN TH SHREE GOW

ASSISTANT C 1, CHANDIGA

CORAM: H

Present: M

M f

* SANJEEV PR

1.

N 2. M notice on beh 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 W RAKSHNI SABHA (REGD.) V COMMISSIONER OF INCOME GARH AND OTHERS

HON'BLE MR. JUSTICE SANJ HON'BLE MR. JUSTICE SANJ Mr. Nikhil Goyal, Advocate and Mr. Tajeshwar Singh, Advocate f Mr. Amanpreet (A.P.) Singh, Sen for the respondent-Income Tax D ***** RAKASH SHARMA, J. (Oral) Notice of motion. Mr. Amanpreet (A.P.) Singh, Se alf of the respondent-Income Ta 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 23420-2024 (O&M) f Decision:13.09.2024

..…...Petitioners (s) V/s. TAX, EXEMPTIONS CIRCLE-

......Respondent(s) NJEEV PRAKASH SHARMA NJAY VASHISTH

for the petitioner. nior Standing Counsel, Department enior Standing Counsel, accepts ax Department 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 s e n , f , Suresh Kumar 2024.09.13 17:53 I attest to the accuracy and integrity of this document

CWP-23420-202

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 2024.09.13 17:53 I attest to the accuracy and integrity of this document

CWP-23420-202

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 25.04 l proceedings are set aside. All pending applications also stan [SANJEEV 3, 2024 [SAN

king / reasoned :

Y rtable

Y 4.2023 (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 17:53 I attest to the accuracy and integrity of this document

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