GURPREET SINGH vs. UNION OF INDIA AND OTHERS

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CWP/30727/2024HC Punjab & HaryanaPHHC01157118202414 November 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. By exercising powers contained in Sections 119 and 120 of the Act, as well as Section 144B (7 & 8), the authorities cannot usurp legal provisions to their own satisfaction and convenience, causing hardship and confusion to assessees. Instructions and circulars can only supplement statutory provisions for their implementation. Therefore, notices issued under Section 148 of the Act and proceedings initiated thereafter without conducting faceless assessment as envisaged under Section 144B of the Act were found to be contrary to the provisions of the Act. Accordingly, notices dated 26.03.2024, 28.02.2023, 16.03.2023, 20.03.2024, 30.03.2023, and order dated 30.03.2023 were set aside for want of jurisdiction. The Revenue was at 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, Gurpreet 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 Union of India and others, appeared. The High Court noted that the issue involved in this petition had been finally examined and concluded by the same Court in similar writ petitions, specifically CWP No. 509 of 2023 (Jasjit Singh vs. Union of India and others) decided on 29.07.2024, and CWP No. 745 of 2024 (Jatinder Singh Bhangu vs. Union of India and others) decided on 19.07.2024. The Court was informed that the Coordinate Bench in Jasjit Singh (supra) had held that circulars or instructions from the Board could not override statutory provisions or make them otiose. The Court also noted that proceedings initiated without conducting faceless assessment as envisaged under Section 144B of the Act were found to be contrary to the provisions of the Act.

What were the issues?

1. Whether notices issued under Section 148 of the Income Tax Act, 1961, and consequential proceedings initiated without conducting faceless assessment under Section 144B of the Act, are valid and in accordance with the law? (Question of law and mixed fact and law, turning on Section 148 and Section 144B of the Income Tax Act, 1961). Assessee's Contention: The petitioner implicitly argued that the notices and proceedings were invalid, as they were not conducted in accordance with the prescribed faceless assessment procedure. The Court's reliance on prior judgments suggests an acceptance of this line of argument. Revenue's Contention: The Revenue, through its counsel, accepted notice and acknowledged that the issue had been decided by a Coordinate Bench in previous cases. No specific arguments were recorded for the Revenue to distinguish the present case or challenge 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-30727-202 113 IN TH GURPREET UNION OF IN

CORAM: H

H Present: M

SANJEEV P

1.

Notice 2. Mr. Ra 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

SINGH Vs.

NDIA AND OTHERS **** HON’BLE MR. JUSTICE SAN HON’BLE MR. JUSTICE SAN **** Mr. Anurag Sharma, Advocate fo Mr. Ranvijay Singh, Sr. Standing for the respondents/Revenue. **** RAKASH SHARMA, J.(Oral) of motion. anvijay Singh, Sr. Standing Cou dent/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-30727-2024 (O&M) Date of Decision: 14.11.2024 . . . . Petitioner . . . . Respondents NJEEV PRAKASH SHARMA NJAY VASHISTH or the petitioner. g 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 2024.11.18 14:50 I attest to the accuracy and integrity of this document

CWP-30727-202 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 2024.11.18 14:50 I attest to the accuracy and integrity of this document

CWP-30727-202 a t i w 4. Keepin terms. mutand issued Jurisdic proceed 5. All pen

November 14, 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 , 2024 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 26.03.2024 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 2024.11.18 14:50 I attest to the accuracy and integrity of this document

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