M S AIR INDIA EXPREES LIMITED vs. THE CHIEF COMMISSIONER OF INCOME TAX

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CWP/29171/2024HC Punjab & HaryanaPHHC01146407202425 October 2024Bench: MR. JUSTICE SANJEEV PRAKASH SHARMA,MR. JUSTICE SANJAY VASHISTH3 pages
AI SummaryAllowed

What did the High Court hold?

The Tribunal held that administrative instructions or circulars issued by the Board cannot override statutory provisions or make them obsolete. Legislative enactments must be followed strictly. Powers contained in Sections 119 and 120 of the Income Tax Act, 1961, as well as Section 144B (7 & 8), do not allow authorities to usurp legal provisions for their convenience, causing hardship and confusion to assessees. Instructions and circulars can only supplement statutory provisions for their implementation. Therefore, notices issued by the Joint Assessing Officer under Section 148 and proceedings conducted under Section 144B, if found to be contrary to the Act, are liable to be set aside for want of jurisdiction. Consequently, the notices dated 31.08.2024, 28.02.2023, 16.03.2023, 20.03.2024, and 30.03.2023, and the consequential proceedings were set aside. The revenue was at liberty to follow the procedure laid down under the Act. No issue was expressly left undecided.

What were the facts?

The petitioner, M/s Air India Express Limited, filed a writ petition before the High Court of Punjab and Haryana at Chandigarh. The petition challenged notices issued under Section 148 of the Income Tax Act, 1961, and subsequent proceedings conducted under Section 144B. The revenue, represented by the Chief Commissioner of Income Tax and another, accepted notice. The Court noted that the issue was similar to previously decided cases, 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), which had addressed the validity of faceless assessment proceedings and notices issued under Section 148. The assessment year(s) and the specific amounts in dispute were not explicitly stated in this excerpt.

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 are contrary to the provisions of the Act and potentially override statutory provisions through administrative instructions or circulars. The Assessee (Petitioner) contended that the notices and proceedings were invalid. The Revenue (Respondents) did not present separate arguments but accepted that the issue had been finally examined and concluded by the Court in prior judgments. The Court's decision in Jasjit Singh (supra) and Jatinder Singh Bhangu (supra) were relied upon, which held that administrative instructions or circulars cannot override statutory provisions or render them otiose. The Revenue's counsel accepted that the present petition could be decided based on these prior judgments.

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-29171-202 101 IN TH M/S AIR IND THE CHIEF C

CORAM: H

H Present: M 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

DIA EXPREES LIMITED Vs.

COMMISSIONER OF INCOME **** HON’BLE MR. JUSTICE SAN HON’BLE MR. JUSTICE SAN **** Mr. Sukhsagar S. Syal, Advocate Mr. Ramandeep Singh, Advocate 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-29171-2024 (O&M) Date of Decision: 25.10.2024 . . . . Petitioner E TAX AND ANR. . . . . Respondents NJEEV PRAKASH SHARMA NJAY VASHISTH e and e for 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 2024.10.25 12:02 I attest to the accuracy and integrity of this document

CWP-29171-202 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 2024.10.25 12:02 I attest to the accuracy and integrity of this document

CWP-29171-202 a t i w 4. Keepin terms. mutand issued Jurisdic proceed 5. All pen

October 25, 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 31.08.2024 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 2024.10.25 12:02 I attest to the accuracy and integrity of this document

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