JASBIR KAUR vs. UNION OF INDIA AND OTHERS

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CWP/33532/2024HC Punjab & HaryanaPHHC01174548202412 December 2024Bench: MR. JUSTICE SANJEEV PRAKASH SHARMA,MR. JUSTICE SANJAY VASHISTH3 pages
AI SummaryAllowed

What did the High Court hold?

The High Court allowed the writ petition, applying the principles laid down in the case of Jasjit Singh (supra). The Court held that instructions issued by the Board cannot override statutory provisions or render them otiose. Legislative enactments must be followed strictly, and powers under Sections 119 and 120 of the Act, as well as Section 144B (7 & 8), cannot be exercised by authorities to usurp legal provisions for their convenience, causing hardship and confusion to assessees. The Court found that notices issued by the JAO under Section 148 and proceedings conducted under Section 144B were contrary to the provisions of the Income Tax Act, 1961. Consequently, the notice dated March 30, 2023, and the consequential order dated March 30, 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, if so advised. All pending applications were also disposed of.

What were the facts?

The petitioner, Jasbir Kaur, filed a writ petition challenging notices issued under Section 148 of the Income Tax Act, 1961, and subsequent proceedings. The Revenue, represented by Mr. Saurabh Kapoor, Sr. Standing Counsel, accepted notice. Both parties agreed that the issue had been finally examined and concluded by the High Court in a previous case, CWP-215509 of 2023 (Jasjit Singh vs. Union of India and others), decided on July 29, 2024. This prior judgment dealt with similar issues arising from notices issued by the Joint Assessing Officer (JAO) under Section 148 and proceedings conducted under Section 144B of the Act. The present petition was filed in 2024, and the notices under challenge were dated March 30, 2023. The assessment year(s) are not explicitly stated but are implied to be subject to reassessment proceedings initiated under Section 148.

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 initiated by the Joint Assessing Officer (JAO) without adhering to the prescribed procedure and potentially contrary to statutory provisions and instructions issued by the Board, as decided in Jasjit Singh (supra)? (Question of law and mixed fact and law, turning on Sections 148 and 144B of the Income Tax Act, 1961). Assessee's Contention: The petitioner relied on the judgment in CWP-215509 of 2023 (Jasjit Singh vs. Union of India and others) to argue that the notices and subsequent proceedings were liable to be set aside for want of jurisdiction, as they were contrary to the provisions of the Act and the principles laid down by the Coordinate Bench. Revenue's Contention: The revenue, through its counsel, agreed that the issue was covered by the aforementioned judgment of the Coordinate Bench and did not present any contrary arguments.

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-33532-202 119 IN TH JASBIR KAU UNION OF IN

CORAM: H

H Present: M

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M M M f

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

UR Vs.

NDIA AND OTHERS **** HON’BLE MR. JUSTICE SAN HON’BLE MR. JUSTICE SAN **** Mr. Rishab Singla, Advocate wit Ms. Aakriti, Advocate for the petitioner. Mr. Saurabh Kapoor, Sr. Standin Ms. Pridhi Sandhu, Jr. Standing C Ms. Muskaan Gupta, Advocate for the respondents/Revenue. **** RAKASH SHARMA, J.(Oral) of motion. urabh Kapoor, 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 AB AND HARYANA AT RH CWP-33532-2024 (O&M) Date of Decision: 12.12.2024 . . . . Petitioner . . . . Respondents NJEEV PRAKASH SHARMA NJAY VASHISTH th ng Counsel with 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 2024.12.12 17:27 I attest to the accuracy and integrity of this document

CWP-33532-202 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 2024.12.12 17:27 I attest to the accuracy and integrity of this document

CWP-33532-202 3 f a t i w 4. Keepin terms. mutand issued Jurisdic proceed 5. All pen

December 12, 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 30.03.2023 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 2024.12.12 17:27 I attest to the accuracy and integrity of this document

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