Anju Arora Vs Union of India and others (Punjab and Haryana High Court)
In the case of Anju Arora Vs Union of India and Others, the Punjab and Haryana High Court addressed the misuse of powers under Sections 119, 120, and 144B of the Income Tax Act, 1961 by the Central Board of Direct Taxes (CBDT). The petitioner challenged the issuance of notices and orders by the Jurisdictional Assessing Officer (JAO) under Sections 148A(b), 148A(d), and 148 of the Act, citing non-compliance with the statutory provisions for faceless assessments mandated under Section 144B.
The Court referred to earlier decisions in similar cases, including Jasjit Singh Vs Union of India and Others and Jatinder Singh Bhangu Vs Union of India and Others, which established that CBDT circulars or instructions cannot override legislative provisions. The judgment emphasized that financial laws must be strictly and mandatorily adhered to, and administrative actions should not cause unnecessary hardship or confusion for taxpayers. Circulars and instructions are meant to supplement and implement statutory provisions, not render them ineffective.
The Court found that the notices issued and subsequent proceedings initiated by the JAO were contrary to the Income Tax Act’s provisions. Consequently, the impugned notices and orders were set aside for lack of jurisdiction. However, the revenue authorities were granted liberty to follow the prescribed procedures under the Act and reinitiate proceedings if deemed necessary.
