PIYUSH BERIWAL vs. INCOME TAX OFFICER WARD 3(1) , GURGAON

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CWP/9599/2023HC Punjab & HaryanaPHHC01057374202305 August 2024Bench: MR. JUSTICE SANJEEV PRAKASH SHARMA,MR. JUSTICE SANJAY VASHISTH4 pages
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What did the High Court hold?

The High Court allowed the writ petition, setting aside the notices dated 03.03.2023 and 07.04.2023. The court subscribed to the view expressed by the Bombay, Telangana, and Gauhati High Courts, as articulated in the judgment of the Coordinate Division Bench in CWP-15745-2024. The reasoning was that Section 151A, read with Clause 3(b) of the notification dated 29.03.2022, clearly indicates the applicability of the faceless assessment scheme from the stage of show cause notice under Section 148. The court found that the object of faceless assessment would be defeated if the notice under Section 148 was issued by the Jurisdictional Assessing Officer. It was also held that departmental circulars, instructions, or letters cannot override statutory provisions, and while they can supplement, they cannot supplant statutory provisions. The notices issued by the Jurisdictional Assessing Officer under Section 148 were quashed with liberty to the respondent to proceed in accordance with the procedure prescribed by law. Other questions raised by the petitioner were dismissed as not pressed.

What were the facts?

The petitioner, Piyush Beriwal, filed a writ petition before the High Court of Punjab and Haryana challenging notices issued by the Income Tax Officer, Ward 3(1), Gurgaon. The petitioner sought to pre-pone the hearing date, which was fixed for 03.10.2024, to 05.08.2024, citing a judgment by a Coordinate Division Bench of the same court in CWP-15745-2024. The respondents, represented by Sr. Standing Counsel, accepted notice and raised no objection. The court allowed the application to advance the hearing date. Subsequently, the main writ petition was taken up for final disposal based on the same judgment. Both parties agreed that the issue was adjudicated by the Coordinate Division Bench in CWP-15745-2024.

What were the issues?

1. Whether the notices issued under Section 148 of the Income Tax Act, 1961, are invalid if issued by the Jurisdictional Assessing Officer, contrary to the scheme of faceless assessment under Section 151A. Assessee's Contention: The petitioner argued that the matter was squarely covered by the judgment in CWP-15745-2024, implying that the notices were indeed invalid. The petitioner also stated that other questions raised in the writ petition were not pressed. Revenue's Contention: The revenue, through Sr. Standing Counsel, accepted notice on the application to pre-pone the hearing and raised no objection to allowing the prayer. In the main case, the revenue's counsel agreed that the issue stood finally adjudicated by the Coordinate Division Bench in CWP-15745-2024.

Which sections of the Income-tax Act were involved?

Section 151A,Section 148,Section 148A,Section 144B

AI-generated summary — verify with the full judgment below

CWP-9599-2023 (O&M) - 1 - IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 132 CWP-9599-2023 (O&M) Decided on : 05.08.2024 Piyush Beriwal . . . Petitioner(s) Versus Income Tax Officer, Ward 3(1), Gurgaon and another . . . Respondent(s) CORAM: HON’BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON'BLE MR. JUSTICE SANJAY VASHISTH PRESENT: Mr. Chetan Mittal, Sr. Advocate with Ms. Divya Arora, Advocate, Mr. Ritvik Garg, Advocate and Mr. Piyush Beriwal, Advocate (appearing through V.C.) for the petitioner(s). Mr. Varun Issar, Sr. Standing Counsel for the respondent(s). **** SANJEEV PRAKASH SHARMA

, J. (Oral) CM-12183-CWP-2024 I. Present application has been filed under Section 151 CPC, for pre-poning the date of hearing, which is fixed for 03.10.2024, keeping in view the fact that present matter is squarely covered by the judgment dated 19.07.2024, passed by the Coordinate Division Bench of this Court in CWP- 15745-2024. II. Notice of this application to the non-applicants/respondents. III. Mr. Varun Issar, Sr. Standing Counsel, accepts notice on behalf of the non-applicants/respondents, and raises no objection in allowing the prayer made in the application by the applicant-petitioner. IV. In view of above, prayer made in the application is allowed. JAWALA RAM 2024.08.07 17:38 I attest to the accuracy and authenticity of this document

CWP-9599-2023 (O&M) - 2 - Accordingly, date of hearing in the main case i.e. CWP-9599-2023, is advanced from 03.10.2024 to 05.08.2024 i.e. today itself. CM stands disposed of. CWP -12186-CWP-2024 I. Present application has been filed under Section 151 for placing on record Annexures P-7 to P-11. II. Allowed as prayed for. Annexures P-7 to P-11 filed along with the application are taken on record, subject to all just exceptions. Office to tag the same at appropriate place. CM stands disposed of. CWP-9599-2023 (O&M) 1. In view of the order of even date passed in CM-12183-CWP- 2024, present writ petition is being taken up for final disposal. 2. CM-12184-CWP-2024 has been filed on behalf of the applicant-petitioner for seeking disposal of the present writ petition in light of the judgment/order dated 19.07.2024, passed by the Coordinate Division Bench of this Court in CWP-15745-2024. 2. Notice of this application to the non-applicants/respondents. 3. Mr. Varun Issar, Sr. Standing Counsel, accepts notice on behalf of the non-applicants/respondents. 4. Learned counsel for both the sides are ad idem that the issue raised in these connected Writ Petitions stands finally adjudicated by the Coordinate Division Bench of this Court vide order dated 19.07.2024 in a bunch of Writ Petitions in which the lead case is CWP-15745-2024 titled as Jatinder Singh Bhangu Vs. Union of India and Others, whereby, the JAWALA RAM 2024.08.07 17:38 I attest to the accuracy and authenticity of this document

CWP-9599-2023 (O&M) - 3 - Coordinate Division Bench of this Court has subscribed the view expressed by Bombay, Telangana and Gauhati High Courts. 5. The Coordinate Division Bench, has passed the following judgment/order:- “15. From the perusal of Section 151A, it is quite evident that scheme of faceless assessment is applicable from the stage of show cause notice under Section 148 as well as 148A. Clause 3 (b) of notification dated 29.03.2022 issued under Section 151A clearly provides that scheme would be applicable to notice under Section 148. Even otherwise, it is a settled proposition of law that assessment proceedings commence from the stage of issuance of show cause notice. The object of introduction of faceless assessment would be defeated if show cause notice under Section 148 is issued by Jurisdictional Assessing Officer. The respondents are heavily placing reliance upon office memorandum and letter issued by departmental authorities. It is axiomatic intax jurisprudence that circulars, instructions and letters issued by Board or any other authority cannot override statutory provisions. The circulars are binding upon authorities and Courts are not bound by circulars. The mandate of Section 144B, 151A read with notification dated 29.03.2022 issued thereunder is quite lucid. There is no ambiguity in the language of statutory provisions, thus, office memorandum or any other instruction issued by Board or any other authority cannot be relied upon. JAWALA RAM 2024.08.07 17:38 I attest to the accuracy and authenticity of this document

CWP-9599-2023 (O&M) - 4 - Instructions/circulars can supplement but cannot supplant statutory provisions. 16. In the wake of above discussion and findings, we find it appropriate to subscribe view expressed by Bombay, Telangana and Gauhati High Court. The instant petitions deserve to be allowed and accordingly allowed. 17. The notices issued by Jurisdictional Assessing Officer under Section 148 are hereby quashed with liberty to respondent to proceed in accordance with procedure prescribed by law.” 6. In view of the above, we allow this Writ Petition in the aforesaid terms. Accordingly, order/notices dated 03.03.2023 and 07.04.2023 are set-aside. The other questions raised in the present writ petition are not pressed by the learned counsel for the petitioner. Accordingly, the same are dismissed as not pressed. Pending applications, if any, shall stand disposed of accordingly. (SANJEEV PRAKASH SHARMA) JUDGE (SANJAY VASHISTH) JUDGE August 05, 2024 J.Ram Whether speaking/reasoned: Yes/No Whether Reportable: Yes/No JAWALA RAM 2024.08.07 17:38 I attest to the accuracy and authenticity of this document

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