SWARAN SINGH vs. INCOME TAX OFFICER AND OTHERS

PDF · subscribers
CWP/27607/2024HC Punjab & HaryanaPHHC01137208202415 October 2024Bench: MR. JUSTICE SANJEEV PRAKASH SHARMA,MR. JUSTICE ALOK JAIN3 pages
AI SummaryAllowed

What did the High Court hold?

The High Court held that notices issued by the JAO under Section 148 of the Income Tax Act, 1961, and the proceedings initiated thereafter without conducting faceless assessment as envisaged under Section 144B of the Act, are contrary to the provisions of the Act. The Court agreed with the Coordinate Bench that circulars or instructions by the Board cannot override statutory provisions or make them otiose. Legislative enactments with financial implications must be followed strictly. The Court found that by exercising powers under Sections 119 and 120 of the Act, as well as Section 144B(7) & (8), authorities cannot usurp legal provisions for their convenience, causing hardship and confusion to assessees. Instructions and circulars can only supplement statutory provisions. Consequently, the notices dated 28.02.2023, 16.03.2023, 20.03.2024, and 30.03.2023, and the order dated 30.03.2023, were set aside for want of jurisdiction. The respondents-revenue were granted liberty to follow the procedure laid down under the Act if so advised. The Court allowed the writ petition in terms of the previous judgments, setting aside the notice dated 18.03.2024 and all consequential proceedings.

What were the facts?

The petitioner, Swaran 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 subsequent proceedings. The revenue was represented by the Income Tax Officer, Ward-1, Kapurthala, and others. The core of the dispute revolved around whether these notices and proceedings were validly initiated, particularly in light of the faceless assessment scheme envisaged under Section 144B of the Act. The High Court noted that the issue was identical to those decided in previous writ petitions, specifically CWP No. 21509 of 2023 (Jasjit Singh vs. Union of India and others) and CWP No. 1574 of 2024 (Jatinder Singh Bhangu vs. Union of India and others).

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 faceless assessment as envisaged under Section 144B of the Act, are contrary to the provisions of the Act. This issue turns on the interpretation and application of Sections 144B and 148 of the Income Tax Act, 1961. Assessee's Contention: The assessee argued, by relying on previous judgments of the Coordinate Bench in Jasjit Singh and Jatinder Singh Bhangu, that notices and proceedings initiated without adhering to the faceless assessment scheme under Section 144B are invalid. Revenue's Contention: The revenue suggested that there might be grounds to distinguish the present case or take a different view from the precedents set by the Coordinate Bench.

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

132

Swaran Singh

Income Tax O

CORAM: H

Present: M

SANJEEV P 1.

N 2.

M behalf of the r 3.

L issue involved by this Court India and oth CWP No.1574 and others, de under: “ B c IN THE HIGH COURT OF PUN AT CHANDIGA C D h

Vs. Officer, Ward-1, Kapurthala and

HON’BLE MR. JUSTICE SAN HON’BLE MR. JUSTICE ALO Mr. Jorawar Singh Bhasin, Advo

*** RAKASH SHARMA, J.(Oral) Notice of motion. Ms. Urvashi Dhugga, Sr. Stand revenue. Learned counsel for the parties d in the present petition stands f in CWP No.21509 of 2023 title hers, decided on 29.07.2024, an 745 of 2024 titled as Jatinder Sin ecided on 19.07.2024. This Cour “16. We are in agreement with th Bench and hold that such circul could not have been issued to ove NJAB AND HARYANA ARH CWP-27607-2024 (O&M) Date of Decision: 15.10.2024

…Petitioner others …Respondents NJEEV PRAKASH SHARMA OK JAIN ocate for the petitioner. ) ding Counsel, accepts notice on are ad idem that the substantial finally examined and concluded ed as Jasjit Singh vs. Union of nd by the Coordinate Bench in ngh Bhangu vs. Union of India rt in Jasjit Singh (supra) held as he view taken by the Coordinate lar or instructions by the Board erride statutory provisions or to

n l d f n a s e d

RAJESH KUMAR 2024.10.16 11:14 I attest to the accuracy and authenticity of this order/judgment. Punjab & Haryana High Court, Chandigarh.

[2]

CWP-27607-2024 (O&M)

make them otiose or obsolete. Legislative enactments having 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. RAJESH KUMAR 2024.10.16 11:14 I attest to the accuracy and authenticity of this order/judgment. Punjab & Haryana High Court, Chandigarh.

[3]

CWP-27607-2024 (O&M)

20.

All the writ petitions are allowed. The interim order passed by the Court shall stand merged with the present order.”

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 of the Income Tax Act, dated 18.03.2024 and all consequential proceedings are set aside. 5.

All pending applications also stand disposed of accordingly.

(SANJEEV PRAKASH SHARMA) JUDGE

(ALOK JAIN)

JUDGE 15.10.2024 rajesh 1. Whether speaking/reasoned? : Yes/No 2. Whether reportable?

: Yes/No RAJESH KUMAR 2024.10.16 11:14 I attest to the accuracy and authenticity of this order/judgment. Punjab & Haryana High Court, Chandigarh.

More judgments on Section 148

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

Latest GST High Court judgments

Search GST case law →