HARPINDER PAL SINGH vs. INCOME TAX OFFICER AND OTHERS

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CWP/28849/2024HC Punjab & HaryanaPHHC01145164202423 October 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 notices issued under Section 148 of the Income Tax Act, 1961, and the consequential proceedings initiated by the Jurisdictional Assessing Officer under the faceless assessment scheme (Section 144B) were contrary to the provisions of the Act. The Court agreed with the view taken by its Coordinate Bench in Jasjit Singh (supra) and Jatinder Singh Bhangu (supra). The Court reasoned that circulars or instructions issued by the Board under Sections 119 and 120 of the Act cannot override statutory provisions or make them otiose. Legislative enactments with financial implications must be followed strictly. The Court found that the authorities could not usurp legal provisions to their own satisfaction or convenience, causing hardship and confusion to assessees. Therefore, the notices dated 19.03.2023, 28.02.2023, 16.03.2023, 20.03.2024, 30.03.2023, and 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. All pending applications were also disposed of. No issue was expressly left undecided.

What were the facts?

The petitioner, Harpinder Pal Singh, 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 years are not explicitly stated, but the notices challenged are dated between March 2023 and March 2024. The core of the dispute revolves around the validity of these notices and the assessment proceedings initiated under the faceless assessment scheme. The High Court noted that similar issues had been decided by its Coordinate Bench in other writ petitions, specifically CWP No. 215 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 filed in 2024.

What were the issues?

1. Whether notices issued under Section 148 of the Income Tax Act, 1961, and subsequent proceedings initiated under the faceless assessment scheme (Section 144B) are valid when they are alleged to be contrary to the provisions of the Act and the instructions issued by the Board. Assessee's Contention: The petitioner argued that the notices and proceedings were invalid. While not explicitly detailed, the petitioner's stance is implicitly supported by the Court's final decision. The petitioner relied on the Coordinate Bench's decisions in Jasjit Singh and Jatinder Singh Bhangu. Revenue's Contention: The Revenue, through its counsel Ms. Urvashi Dhugga, Sr. Standing Counsel, accepted notice. The Revenue's argument, as inferred from the Court's discussion, was that the notices and proceedings were valid. However, the Court did not find merit in this implicit contention, as it followed the precedent set by the Coordinate Bench. The Revenue's counsel suggested distinguishing the present case, which the Court rejected.

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-28849-202 146 IN TH HARPINDER INCOME TA

CORAM: H

H Present: M M

SANJEEV P

1.

Notice 2. Ms. Ur 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

R PAL SINGH 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. Urvashi Dhugga, Sr. Standin for the respondents/Revenue. **** RAKASH SHARMA, J.(Oral) of motion. rvashi Dhugga, Sr. Standing Cou 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-28849-2024 (O&M) Date of Decision: 23.10.2024 . . . . Petitioner . . . . Respondents NJEEV PRAKASH SHARMA NJAY VASHISTH h he petitioner. ng Counsel ) unsel 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 2024.10.23 17:22 I attest to the accuracy and integrity of this document

CWP-28849-202 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 2024.10.23 17:22 I attest to the accuracy and integrity of this document

CWP-28849-202 a t i w 4. Keepin terms. mutand issued Jurisdic proceed 5. All pen

October 23, 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 19.03.2023 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 3 y l MOHIT GOYAL 2024.10.23 17:22 I attest to the accuracy and integrity of this document

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