M/S GURMAT PARCHAR SABHA (REGD.),CHANDIGARH vs. NWR-W-(41)(91), CHANDIGARH

PER RAJPAL YADAV, VP The assessee is in appeal before the Tribunal against the order of the ld. Commissioner of Income Tax (Appeals) [in short ‘the CIT (A)’] dated 12.08.2024 passed for assessment year 2019-20. 2. The Registry has pointed out that appeal is time barred by three days. On due consideration of the A.Y.2019-20 2

application for condonation of delay, we condone this small delay of three days and proceed to decide the appeal on merit.
3. The assessee has raised an additional ground of appeal vide which it has challenged the re-opening of an assessment by issuance of a notice under Section 148A(d) of the Act by the juri ictional AO. According to him, it ought to have been issued by Faceless A.O.
4. The ld. Counsel for the assessee, at the very outset submitted that issue in dispute is squarely covered by the judgement of Hon'ble juri ictional High Court rendered in the case of the assessee for assessment year 2021-22 and Writ Petition No. 2251 of 2025. He placed on record copy of the decision dated 28.01.2025. He further relied upon the judgement of Hon'ble juri ictional High Court in the case of Jatinder Singh Bhangu CWP-15745/2024. He placed on record copy of this judgement also. According to this judgement of Hon'ble juri ictional High Court, after issuance of a Notification dated 29.03.2022, all the notices for re-opening of the assessment ought to have been issued
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by NFAC. The juri ictional AO could not have issued notice for re-opening of the assessment. The relevant finding of the Hon'ble High Court in the case of Jatinder
Bhangu read as under :
14. The respondent during the course of arguments vehemently and vigorously pleaded that notice under Section 148 can be issued by Juri ictional Assessing
Officer. In support of his contention, they heavily relied upon office memorandum dated 2').02.2023 and letter dated
19.01.2024 issued by Directorate of Income Tax (System).
15. From the perusal of Section 151 A. 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 Juri ictional Assessing Officer.
The respondents arc 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 readwith 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. 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.
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allow the appeal and set aside both the impugned orders.
6. In the result, the appeal is allowed.
Order pronounced on 21.04.2025. (MANOJ KUMAR AGGARWAL)
VICE PRESIDENT

“Poonam”

आदेश क ितिलिप अ ेिषत/ Copy of the order forwarded to :

आदेशानुसार/ By order,
सहायक पंजीकार/