RUPINDER KAUR MAHL vs. INCOME TAX OFFICER

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CWP/28304/2024HC Punjab & HaryanaPHHC01142643202419 October 2024Bench: MR. JUSTICE SANJEEV PRAKASH SHARMA,MR. JUSTICE SANJAY VASHISTH3 pages
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What did the High Court hold?

The Tribunal held that circulars or instructions issued by the Board cannot override statutory provisions or make them otiose. Legislative enactments with financial implications must be followed strictly and mandatorily. The authorities cannot usurp legal provisions to their own satisfaction or convenience, causing hardship and confusion to assessees. Instructions and circulars can only supplement statutory provisions for their implementation. In light of the previous decisions in Jasjit Singh (supra) and Jatinder Singh Bhangu (supra), the Tribunal found that notices issued under Section 148 of the Act and subsequent proceedings initiated without conducting faceless assessment under Section 144B were contrary to the Act. Consequently, the notices dated 24.03.2024, 28.02.2023, 20.03.2024, 16.03.2023, and 30.03.2023, along with the consequential orders, were set aside for want of jurisdiction. The Revenue was granted liberty to follow the procedure laid down under the Act and proceed accordingly if so advised. All pending applications were also disposed of.

What were the facts?

The petitioner, Rupinder Kaur Mahl, filed a writ petition 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, contested the petition. The assessment year(s) are not explicitly stated but the notices are dated in 2023 and 2024. The core of the dispute revolves around the validity of faceless assessment proceedings initiated without conducting a proper assessment as envisaged under Section 144B of the Act. The procedural history indicates that this court had previously dealt with similar issues in other writ petitions, notably CWP No. 509 of 2023 (Jasjit Singh vs. Union of India) and CWP No. 157 of 2024 (Jatinder Singh Bhangu vs. Union of India). The present petition was heard alongside these precedents.

What were the issues?

1. Whether notices issued under Section 148 of the Income Tax Act, 1961, and subsequent proceedings initiated without conducting a faceless assessment as envisaged under Section 144B of the Act, are contrary to the provisions of the Act and the law laid down by this Court. Assessee's Contention: The petitioner implicitly argues that the notices and proceedings are invalid because they do not adhere to the prescribed faceless assessment procedures under Section 144B, leading to a lack of jurisdiction. The petitioner relies on the decisions of this Court in Jasjit Singh (supra) and Jatinder Singh Bhangu (supra). Revenue's Contention: The Revenue, through its counsel, accepted notice and acknowledged that the issue has been finally examined and concluded by this Court in the aforementioned cases. They did not present any arguments to distinguish the present case from the precedents cited by the petitioner.

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-28304-202 113 IN TH RUPINDER K INCOME TA

CORAM: H

H Present: M

SANJEEV P

1.

Notice 2. Mr. Yo respond 3. Both th petition No.215 decided No.157 24 (O&M) Page 1 of 3 HE HIGH COURT OF PUNJA CHANDIGAR

KAUR MAHL Vs.

AX OFFICER AND OTHERS **** HON’BLE MR. JUSTICE SAN HON’BLE MR. JUSTICE SAN **** Mr. Vishav Bharti Gupta, Advoc Mr. Yogesh Putney, Sr. Standing Mr. Vaibhav Gupta, Standing Co for the respondents/Revenue. **** RAKASH SHARMA, J.(Oral) of motion. ogesh Putney, Sr. Standing Coun dents/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 AB AND HARYANA AT RH CWP-28304-2024 (O&M) Date of Decision: 19.10.2024 . . . . Petitioner . . . . Respondents NJEEV PRAKASH SHARMA NJAY VASHISTH cate for the petitioner. g Counsel with ounsel ) nsel accepts notice on behalf of 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

) 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-28304-202 and oth held as b i o o i m S S a s a t a s i n s w C u i a A p 24 (O&M) Page 2 of 3 hers, decided on 19.07.2024. Th under: “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 his Court in Jasjit Singh (supra) 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

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

CWP-28304-202 d 3 f 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 dated 28.02.2023, 16.03.202 30.03.2023 and order dated 30. for want of jurisdiction. 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 23, 20.03.2024 and 03.2023, are set aside 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 24.03.2024 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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