MOHAN JIT SINGH vs. UNION OF INDIA AND OTHERS

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CWP/31507/2024HC Punjab & HaryanaPHHC01162085202422 November 2024Bench: MR. JUSTICE SANJEEV PRAKASH SHARMA,MR. JUSTICE SANJAY VASHISTH3 pages
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What did the High Court hold?

The High Court, following its own previous decisions in Jasjit Singh and Jatinder Singh Bhangu, held that circulars or instructions issued by the Board cannot override statutory provisions or render them otiose. Legislative enactments with financial implications must be followed strictly. The Court found that by exercising powers contained in Sections 119 and 120 of the Act, 1961, as well as Section 144B (7 & 8), the authorities could not usurp legal provisions for their convenience, causing hardship and confusion to assessees. Consequently, the notices issued under Section 148 of the Act, 1961, and the subsequent proceedings, including the faceless assessment, were found to be contrary to the provisions of the Act, 1961. The Court set aside the impugned notices and consequential proceedings for want of jurisdiction. The revenue was granted liberty to follow the procedure laid down under the Act, 1961, and proceed accordingly if advised. All pending applications were also disposed of.

What were the facts?

The petitioner, Mohan Jit Singh, filed a writ petition challenging notices issued under Section 148 of the Income Tax Act, 1961, and subsequent proceedings. The High Court noted that the issue was identical to those decided in previous writ petitions, specifically CWP No. 21509 of 2023 (Jasjit Singh vs. Union of India and others) decided on July 29, 2024, and CWP No. 15724 of 2024 (Jatinder Singh Bhangu vs. Union of India and others) decided on July 19, 2024. The Court acknowledged that both parties were in agreement that the present petition should be decided based on the precedents set in those earlier cases. The challenged notices were dated February 28, 2023, March 16, 2023, March 20, 2024, and March 30, 2023, along with an order dated March 30, 2023.

What were the issues?

1. Whether notices issued under Section 148 of the Income Tax Act, 1961, and subsequent faceless assessment proceedings initiated without conducting a proper assessment as envisaged under Section 144B of the Act, are contrary to the provisions of the Act, 1961. Assessee's Contention: The assessee, by implication of filing the writ petition and relying on the cited precedents, argued that the notices and proceedings were invalid. The Court's reliance on the previous judgments suggests the assessee's position was that instructions by the Board cannot override statutory provisions and that faceless assessment procedures under Section 144B were not followed correctly. Revenue's Contention: The revenue, through its counsel, accepted notice and agreed that the issue was concluded by previous judgments. This implies the revenue did not contest the assessee's claim that the notices and proceedings were contrary to law, as per the established precedents.

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-31507-202 123 IN TH MOHAN JIT UNION OF IN

CORAM: H

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SANJEEV P

1.

Notice 2. Mr. Sau respond 3. Both th petition No.215 decided No.157 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. Manpreet Singh Kanda, Adv Mr. Deepinder Singh, Advocate for the petitioner. Mr. Saurabh Kapoor, Sr. Standin for the respondents/Revenue. **** RAKASH SHARMA, J.(Oral) of motion. urabh Kapoor, 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 AB AND HARYANA AT RH CWP-31507-2024 (O&M) Date of Decision: 22.11.2024 . . . . Petitioner . . . . Respondents NJEEV PRAKASH SHARMA NJAY VASHISTH vocate 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

) 4 r s f t P , P a MOHIT GOYAL 2024.11.22 11:36 I attest to the accuracy and integrity of this document

CWP-31507-202 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 d 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 dated 28.02.2023, 16.03.202 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 23, 20.03.2024 and

) MOHIT GOYAL 2024.11.22 11:36 I attest to the accuracy and integrity of this document

CWP-31507-202 3 f a t i w 4. Keepin terms. mutand issued Jurisdic proceed 5. All pen

November 22, Mohit goyal 1. Whethe 2. Whethe 24 (O&M) Page 3 of 3 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 , 2024 r speaking/reasoned?

Y r reportable?

Y 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 27.03.2024 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 2024.11.22 11:36 I attest to the accuracy and integrity of this document

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