OM PARKASH vs. INCOME TAX OFFICER AND OTHERS

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CWP/28302/2024HC Punjab & HaryanaPHHC01143111202419 October 2024Bench: MR. JUSTICE SANJEEV PRAKASH SHARMA,MR. JUSTICE SANJAY VASHISTH3 pages
AI SummaryAllowed

What did the High Court hold?

The Tribunal held that circulars or instructions issued by the Board under Sections 119 and 120 of the Income Tax Act, 1961, cannot override statutory provisions or render them obsolete. Legislative enactments must be followed strictly. The Court found that the faceless assessment proceedings initiated under Section 144B (7 & 8) of the Act, along with the notices issued under Section 148, were contrary to the provisions of the Act. The Court agreed with the view taken by the Coordinate Bench in Jasjit Singh (supra) and Jatinder Singh Bhangu (supra). Consequently, the notices dated 28.02.2023, 16.03.2023, 20.03.2024, 30.03.2023, and the order dated 30.03.2023 were set aside for want of jurisdiction. The Revenue was granted liberty to follow the procedure laid down under the Act and proceed accordingly. The ratio decidendi is that statutory provisions must be adhered to, and administrative instructions cannot supersede them, especially when they lead to jurisdictional defects in assessment proceedings.

What were the facts?

The petitioner, Om Prakash, filed a writ petition before the High Court of Punjab and Haryana challenging notices issued under Section 148 of the Income Tax Act, 1961, and subsequent proceedings. The Revenue, represented by the Income Tax Officer and others, was the respondent. The Court noted that similar issues had been decided by a Coordinate Bench in CWP-215509 of 2023 (Jasjit Singh vs. Union of India) on 29.07.2024, and in CWP-157745 of 2024 (Jatinder Singh Bhangu vs. Union of India) on 19.07.2024. The core of the dispute revolved around the validity of faceless assessment proceedings initiated under Section 144B of the Act, particularly in light of instructions issued by the CBDT.

What were the issues?

1. Whether notices issued under Section 148 of the Income Tax Act, 1961, and subsequent faceless assessment proceedings initiated under Section 144B of the Act, are valid when they are found to be contrary to the provisions of the Act and the principles of natural justice, particularly concerning the overriding effect of statutory provisions over CBDT instructions? (Mixed question of law and fact, concerning Sections 148 and 144B of the Income Tax Act, 1961). Assessee's Contention: The petitioner, through their counsel, argued that the proceedings were initiated without proper jurisdiction and were contrary to the Act. They relied on the decisions of the Coordinate Bench in Jasjit Singh and Jatinder Singh Bhangu. Revenue's Contention: The Revenue, represented by Ms. Gauri Neo Rampal, Sr. Standing Counsel, accepted notice and did not present any arguments distinct from the precedents cited by the petitioner, indicating agreement with the principle that the issue had been finally examined and concluded by prior judgments of 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

CWP-28302-202 111 IN TH OM PARKAS INCOME TA

CORAM: H

H Present: M M

SANJEEV P

1.

Notice 2. Ms. Ga of respo 3. Both th petition No.215 decided No.157 and oth held as

24 (O&M) Page 1 of 3 HE HIGH COURT OF PUNJA CHANDIGAR

SH Vs.

AX OFFICER AND OTHERS **** HON’BLE MR. JUSTICE SAN HON’BLE MR. JUSTICE SAN **** Mr. B.M. Monga, Advocate with Mr. Rohit Kaura, Advocate for th Ms. Gauri Neo Rampal, Sr. Stand for the respondents/Revenue. **** RAKASH SHARMA, J.(Oral) of motion. auri Neo Rampal, Sr. Standing C ondents/Revenue. he counsel are ad idem that the n stands finally examined and co 509 of 2023 titled as Jasjit Singh d on 29.07.2024, and by the 745 of 2024 titled as Jatinder Sin hers, decided on 19.07.2024. Th under: AB AND HARYANA AT RH CWP-28302-2024 (O&M) Date of Decision: 19.10.2024 . . . . Petitioner . . . . Respondents NJEEV PRAKASH SHARMA NJAY VASHISTH h he petitioner. ding Counsel (through VC) ) Counsel accepts notice on behalf e issue involved in the present oncluded by this Court in CWP h vs. Union of India and others, e Coordinate Bench in CWP ngh Bhangu vs. Union of India his Court in Jasjit Singh (supra)

) 4 r s f t P , P a ) MOHIT GOYAL 2024.10.22 09:48 I attest to the accuracy and integrity of this document

CWP-28302-202 b i o o i m S S a s a t a s i n s w C u i a A p d 3 f

24 (O&M) Page 2 of 3 “16. We are in agreemen by the Coordinate Bench and hol nstructions by the Board could n override statutory provisions or t obsolete. Legislative enactmen mplications are required to be 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 mplementation. 17. In view of the aforesa no occasion to distinguish or ta suggested by the learned counse what has already been held by th 18. Keeping in view the Coordinate Bench (supra), notic under Section 148 of the Act, 196 nitiated thereafter without con assessment as envisaged under Act, 1961, have been found to provisions of the Act, 1961 an dated 28.02.2023, 16.03.202 30.03.2023 and order dated 30. for want of jurisdiction. nt with the view taken ld that such circular or not have been issued to to make them otiose or nts having financial followed strictly and 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 aid discussion, there is ake a different view as el for the revenue from he Coordinate Bench. law laid down by the ces issued by the JAO 61 and the proceedings nducting the faceless r Section 144B of the o be contrary to the d accordingly notices 23, 20.03.2024 and 03.2023, are set aside

MOHIT GOYAL 2024.10.22 09:48 I attest to the accuracy and integrity of this document

CWP-28302-202 a t i w 4. Keepin terms. mutand issued Jurisdic proceed 5. All pen

October 19, 20 Mohit goyal 1. Whethe 2. Whethe

24 (O&M) Page 3 of 3 19. The respondents-reven at liberty to follow the procedur the Act, 1961 and proceed accord 20. All the writ petition nterim order passed by the Cou with the present order.”

ng in view above, we allow this The observations and order pa dis to the present case. Accord under Section 148 of the ctional Assessing Officer as dings are set aside. nding applications also stand disp

(SANJ 024 r speaking/reasoned?

Y r reportable?

Y nue would be, however, re as laid down under dingly, if so advised. ns are allowed. The urt shall stand merged s Writ Petition in the aforesaid assed above shall apply mutatis dingly, notice dated 30.03.2024 Income Tax Act, 1961 by s well as the consequential posed of accordingly. JEEV PRAKASH SHARMA) JUDGE

(SANJAY VASHISTH) JUDGE Yes/No Yes/No

d s 4 y l MOHIT GOYAL 2024.10.22 09:48 I attest to the accuracy and integrity of this document

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