Case Law Details
Mohan Jit Singh Vs Union of India And Others (Punjab and Haryana High Court)
In the case of Mohan Jit Singh Vs. Union of India and Others (2024), the Punjab and Haryana High Court examined issues related to the issuance of notices under Section 148 of the Income Tax Act, 1961. The court referred to previous judgments, particularly in Jasjit Singh vs. Union of India (2023) and Jatinder Singh Bhangu vs. Union of India (2024), where similar issues were addressed. In these cases, the Court had held that circulars and instructions issued by the Board could not override statutory provisions, and such actions by authorities could not cause hardship to taxpayers or lead to confusion. It was emphasized that instructions should only serve to supplement statutory provisions, not replace or modify them.
In light of the established law from previous cases, the court found that the notices issued by the Jurisdictional Assessing Officer under Section 148, as well as the related proceedings, were in violation of the provisions of the Income Tax Act. Specifically, the Court ruled that the faceless assessment procedure under Section 144B of the Act had not been followed, rendering the notices dated 27.03.2024 and the associated proceedings invalid. Consequently, the Court set aside the notice and proceedings, reinforcing the need for the authorities to adhere to the prescribed legal processes. All pending applications related to the case were disposed of, and the interim order previously passed by the Court was merged with the final order.
FULL TEXT OF THE JUDGMENT/ORDER OF PUNJAB AND HARYANA HIGH COURT
1. Notice of motion.
2. M Saurabh Kapoor respondent/Revenue
3. Both the counsel are accepts notice on behalf of 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:
“16. We are in agreement with the view taken by the Coordinate Bench and hold that such circular o r 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 1 48 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.
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 27.03.2024 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.
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