Allowed

Sood Enterprises, through Its Proprietor Sahil Sood v. Union of India through Its Secretary and Others

Punjab & Haryana HC27 Aug 2024CWP/20813/2024

Case brief

AI extract

What is this about?

The High Court allowed the writ petition relying on a coordinate bench judgment. It set aside income tax notices issued under Sections 148A(b) and 148 and consequential orders for conducting proceedings without mandatory faceless assessment, holding such initiation to be contrary to the Act.

What did the court decide?

Notice under Section 148A(b) and 148 and orders dated 17.01.2024 and 27.02.2024 and consequential proceedings are set aside.

Sood Enterprises, through Its Proprietor Sahil Sood Vs… — Income Tax | Punjab & Haryana HC (2024)

(O&M)

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IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

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(O&M) Date of Decision: 27.08.2024

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. . . . Petitioner

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Vs.

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UNION OF INDIA THROUGH ITS SECRETARY AND OTHERS

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. . . . Respondents

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****

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CORAM: HON’BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON’BLE MR. JUSTICE SANJAY VASHISTH

Present:

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SANJEEV PRAKASH SHARMA, J.(Oral)

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Notice of motion.

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accepts notice on behalf of the respondents.

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Both the counsel are ad idem that the issue involved in the present petition stands finally adjudicated in view of the judgment passed by this Court in CWP No.21509 of 2023 titled as Jasjit Singh vs. Union of India and others , decided on 29.07.2024, wherein this Court held as under:

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LAVISHA 2024.08.28 14:54 I attest to the accuracy and authenticity of this order/judgment Punjab & Haryana High Court, Chandigarh

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(O&M)

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Page 2 of 3

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“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 be followed strictly and mandatorily. By exercising the powers contained 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 instructions and supplementing the statutory provisions and

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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.

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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.

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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.

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20. All the writ petitions are allowed. The interim order passed by the Court shall stand merged with the present order.”

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LAVISHA 2024.08.28 14:54 I attest to the accuracy and authenticity of this order/judgment Punjab & Haryana High Court, Chandigarh

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(O&M)

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Page 3 of 3

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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 u/s 148A(b) dated 17.01.2024, order dated 27.02.2024 u/s 148A (d) and notice u/s 148 dated 27.02.2024 and consequential proceedings are set aside.

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