MEGHA GUPTA vs. INCOME TAX OFFICER AND OTHERS

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CWP/28327/2024HC Punjab & HaryanaPHHC01142692202419 October 2024Bench: MR. JUSTICE SANJEEV PRAKASH SHARMA,MR. JUSTICE SANJAY VASHISTH3 pages
AI SummaryAllowed

What did the High Court hold?

The High Court held that circulars or instructions issued by the Board cannot override statutory provisions or make them obsolete. Legislative enactments must be followed strictly and mandatorily. The authorities cannot usurp legal provisions to their own satisfaction and convenience, causing hardship to assessees and confusion. Instructions can only supplement statutory provisions for their implementation. Following the law laid down by coordinate benches in Jasjit Singh and Jatinder Singh Bhangu, the Court found that notices issued by the Joint Assessing Officer under Section 148 of the Act, 1961, and subsequent proceedings conducted without conducting the faceless assessment as envisaged under Section 144B of the Act, 1961, were contrary to the provisions of the Act. Consequently, the notices dated 28.02.2023, 20.03.2024, 16.03.2023, and 30.03.2023, along with consequential proceedings, were set aside for want of jurisdiction. The Revenue was granted liberty to follow the procedure laid down under the Act and proceed accordingly. All pending applications were also disposed of.

What were the facts?

The petitioner, Megha Gupta, 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, contested the petition. The assessment years are not explicitly stated for the petitioner's case, but the judgment refers to previous decisions concerning assessment years. The core of the dispute revolves around the validity of notices and proceedings initiated under Section 148 and conducted through the faceless assessment scheme under Section 144B of the Act. The High Court noted that similar issues had been decided by coordinate benches in other writ petitions, specifically CWP No. 509 of 2023 (Jasjit Singh vs. Union of India) decided on 29.07.2024, and CWP No. 745 of 2024 (Jatinder Singh Bhangu vs. Union of India) decided on 19.07.2024.

What were the issues?

1. Whether notices issued under Section 148 of the Income Tax Act, 1961, and subsequent proceedings conducted under Section 144B of the Act, are valid when they allegedly contravene statutory provisions and are issued without jurisdiction. Assessee's Contention: The petitioner argued that the notices and proceedings were invalid. The judgment indicates that the counsel for the petitioner relied on the decisions of coordinate benches in Jasjit Singh and Jatinder Singh Bhangu, which held that circulars and instructions cannot override statutory provisions and that faceless assessment procedures under Section 144B, when exercised to the convenience of authorities, can usurp legal provisions and cause hardship. The petitioner's counsel implicitly argued for the application of these precedents. Revenue's Contention: The Revenue's counsel, Mr. Varun Issar, accepted notice and did not present a distinct argument against the petitioner's case, stating that the issue was concluded by this Court in prior judgments. The judgment notes that the counsel were 'ad idem' (of the same mind) that the issue was concluded, implying the Revenue did not contest the application of the prior rulings.

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-28327-202 133 IN TH MEGHA GUP INCOME TA

CORAM: H

H Present: M

SANJEEV P

1.

Notice 2. Mr. Va respond 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

PTA Vs.

AX OFFICER AND OTHERS **** HON’BLE MR. JUSTICE SAN HON’BLE MR. JUSTICE SAN **** Mr. Nikhil Goyal, Advocate for t Mr. Varun Issar, Sr. Standing Co for the respondents/Revenue. **** RAKASH SHARMA, J.(Oral) of motion. arun Issar, Sr. Standing Couns 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 hers, decided on 19.07.2024. Th under: AB AND HARYANA AT RH CWP-28327-2024 (O&M) Date of Decision: 19.10.2024 . . . . Petitioner . . . . Respondents NJEEV PRAKASH SHARMA NJAY VASHISTH the petitioner. ounsel ) sel 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 his Court in Jasjit Singh (supra)

) 4 r s f t P , P a ) MOHIT GOYAL 2024.10.22 09:49 I attest to the accuracy and integrity of this document

CWP-28327-202 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 09:49 I attest to the accuracy and integrity of this document

CWP-28327-202 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 09:49 I attest to the accuracy and integrity of this document

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