ASHOK KUMAR YADAV vs. UNION OF INDIA AND OTHERS

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CWP/33800/2024HC Punjab & HaryanaPHHC01175649202416 December 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 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 strictly followed. The Court found that authorities cannot usurp legal provisions for their convenience, causing hardship to assessees and confusion. Instructions and circulars can only supplement statutory provisions. Consequently, notices issued by the JAO under Section 148 of the Act and subsequent proceedings initiated without conducting faceless assessment under Section 144B of the Act were found to be contrary to the Act and set aside for want of jurisdiction. The specific notices dated 08.08.2024 (under Section 148A(b)), 28.08.2024 (under Section 148A(d)), and 28.08.2024 (under Section 148) and consequential proceedings were set aside. The respondents-revenue were granted liberty to follow the procedure laid down under the Act if so advised. The interim order merged with the final order.

What were the facts?

The petitioner, Ashok Kumar Yadav, filed a writ petition before the Punjab and Haryana High Court challenging notices and an order related to reassessment proceedings. The petitioner and the respondents (Union of India and others) agreed that the issue was covered by previous judgments of the High Court. Specifically, they referred to CWP No. 21509 of 2023 (Jasjit Singh vs. Union of India and others) decided on 29.07.2024, and CWP No. 15745 of 2024 (Jatinder Singh Bhangu vs. Union of India and others) decided on 19.07.2024. The High Court was asked to decide the validity of the reassessment notices and subsequent proceedings initiated without following the faceless assessment procedure.

What were the issues?

1. Whether notices issued by the Jurisdictional Assessing Officer (JAO) under Section 148 of the Income Tax Act, 1961, and subsequent proceedings initiated without conducting faceless assessment as envisaged under Section 144B of the Act, are contrary to the provisions of the Act, 1961, and thus without jurisdiction (Question of law turning on Sections 144B and 148 of the Income Tax Act, 1961). Assessee's Contention: The petitioner, through counsel, argued that the issue involved in the present petition stands finally examined and concluded by this Court in previous judgments. They relied on the High Court's decision in Jasjit Singh (supra) and Jatinder Singh Bhangu (supra). Revenue's Contention: The revenue, through counsel who accepted notice, did not present any distinct arguments but agreed that the issue was covered by the aforementioned judgments. The judgment does not record any specific arguments made by the revenue against the petitioner's position.

Which sections of the Income-tax Act were involved?

Section 144B,Section 148,Section 148A,Section 119,Section 120

AI-generated summary — verify with the full judgment below

CWP-33800-2024 (O&M) Page 1 of 3 123 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CWP-33800-2024 (O&M) Date of Decision: 16.12.2024 ASHOK KUMAR YADAV . . . . Petitioner Vs. UNION OF INDIA AND OTHERS . . . . Respondents **** CORAM: HON’BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON’BLE MR. JUSTICE SANJAY VASHISTH **** Present: Mr. Manpreet Kanda, Advocate, and Mr. L.C. Yadav, Advocate, for the petitioner. **** SANJEEV PRAKASH SHARMA, J.(Oral) 1. Notice of motion. 2. accepts notice on behalf of respondents/Revenue. 3. Both the counsel are ad idem that the issue involved in the present petition stands finally examined and concluded by this Court in CWP No.21509 of 2023 titled as Jasjit Singh vs. Union of India and others, decided on 29.07.2024, and by the Coordinate Bench in CWP No.15745 of 2024 titled as Jatinder Singh Bhangu vs. Union of India and others, decided on 19.07.2024. This Court in Jasjit Singh (supra) held as under: LAVISHA 2024.12.17 10:51 I attest to the accuracy and authenticity of this order/judgment Punjab & Haryana High Court, Chandigarh

CWP-33800-2024 (O&M) Page 2 of 3 “16. We are in agreement with the view taken by the Coordinate Bench and hold that such circular or instructions by the Board could not have been issued to override statutory provisions or to make them otiose or obsolete. Legislative enactments having financial implications are required to be followed strictly and mandatorily. By exercising the powers contained in Sections 119 and 120 of the Act, 1961 as well as Section 144B (7 & 8), the authorities cannot be allowed to usurp the legal provisions to their own satisfaction and convenience causing hardship to the assessees. It also leaves confusion in the minds of the taxpayers. In the opinion of this Court, instructions and circulars can be issued only for the purpose of supplementing the statutory provisions and for their implementation. 17. In view of the aforesaid discussion, there is no occasion to distinguish or take a different view as suggested by the learned counsel for the revenue from what has already been held by the Coordinate Bench. 18. Keeping in view the law laid down by the Coordinate Bench (supra), notices issued by the JAO under Section 148 of the Act, 1961 and the proceedings initiated thereafter without conducting the faceless assessment as envisaged under Section 144B of the Act, 1961, have been found to be contrary to the provisions of the Act, 1961 and accordingly notices dated 28.02.2023, 16.03.2023, 20.03.2024 and 30.03.2023 and order dated 30.03.2023, are set aside for want of jurisdiction. LAVISHA 2024.12.17 10:51 I attest to the accuracy and authenticity of this order/judgment Punjab & Haryana High Court, Chandigarh

CWP-33800-2024 (O&M) Page 3 of 3 19. The respondents-revenue would be, however, at liberty to follow the procedure as laid down under the Act, 1961 and proceed accordingly, if so advised. 20. All the writ petitions are allowed. The interim order passed by the Court shall stand merged with the present order.” 4. Keeping in view above, we allow this Writ Petition in the aforesaid terms. The observations and order passed above shall apply mutatis mutandis to the present case. Accordingly, notice dated 08.08.2024 issued under Section 148A(b) of the Act, order dated 28.08.2024 passed under Section 148A(d) of the Act, and notice dated 28.08.2024 issued under Section 148 of the Income Tax Act, 1961 by Jurisdictional Assessing Officer as well as the consequential proceedings are set aside. 5. All pending applications also stand disposed of accordingly.

(SANJEEV PRAKASH SHARMA) JUDGE (SANJAY VASHISTH) JUDGE December 16, 2024 Lavisha 1. Whether speaking/reasoned? Yes/No 2. Whether reportable? Yes/No LAVISHA 2024.12.17 10:51 I attest to the accuracy and authenticity of this order/judgment Punjab & Haryana High Court, Chandigarh

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