Allowed

Sant Deepak Educational and Charitable Trust v. Income Tax Officer (Exemption Ward) Chandigarh

Punjab & Haryana HC30 Aug 2024CWP/21460/2024

Case brief

AI extract

What is this about?

The High Court upheld a petition challenging notices issued under Section 148 of the Income Tax Act without faceless assessment. Relying on prior coordinate and non-coordinate judgments, the court set aside the notices for lack of jurisdiction, reiterating that circulars cannot override statutory provisions.

What did the court decide?

Notice dated 30.03.2024 issued by the Jurisdictional Assessing Officer under Section 148 and consequential proceedings set aside. All pending applications disposed of.

Sant Deepak Educational and Charitable Trust Vs… — Quashing and FIR | Punjab & Haryana HC (2024)

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CWP-21460-2024 (O&M)

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Page 1 of 3

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120

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CWP-21460-2024 (O&M) Date of Decision: 30.08.2024

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IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

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SANT DEEP A K EDUCATIONAL AND C H ARITABLE TRUST

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. . . . Petitione r

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Vs.

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INCOME T A X OFFICER (EXEMPTIONS W ARD) AND OTHERS

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. . . . Respondent s

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****

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CORAM: HON’BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON’BLE MRS. JUSTICE RITU TAGORE

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Present: M r. B.M. Monga, Advocate wit h M r. Rohit Kaura, Advocate f or the petitioner.

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M r. Amanpreet (A.P.) Singh, Sr. Standing Counsel f or the respondents/Revenue.

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****

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SANJEEV PRAKASH SHARMA, J.(Oral)

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Notice of motion.

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Mr. A m anpreet (A.P.) Singh, Sr. Sta n ding Counsel accepts notice o n behalf o f respondents/Revenue.

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Both t h e counsel are ad idem that th e issue involved in the presen t petitio n stands finally examined and c o ncluded by this Court in CWP No.21509 of 2023 titled as Jasjit Singh vs. Union of India and others , decide d on 29.07.2024, and by th e Coordinate Bench in CWP No.15745 of 2024 titled as Jatinder Singh Bhangu vs. Union of India and others , decided on 19.07.2024. T h is Court in Jasjit Singh (supra ) held as under:

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MOHIT GOYAL 2024.08.31 12:33 I attest to the accuracy and integrity of this document

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CWP-21460-2024 (O&M)

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Page 2 of 3

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“16. We are in agreeme n t with the view taken b y the Coordinate Bench and ho l d that such circular or instructions by the Board could n ot have been issued to o verride statutory provisions or t o make them otiose or o bsolete. Legislative enactme n ts having financial implications are required to be followed strictly and m andatorily. By exercising the powers contained in S ections 119 and 120 of the A ct, 1961 as well as S ection 144B (7 & 8), the a uthorities cannot be a llowed to usurp the legal pr o visions to their own s atisfaction and convenience c a using hardship to the a ssessees. It also leaves confusi o n in the minds of the t axpayers. In the opinion of t h is Court, instructions a nd circulars can be issued o n ly for the purpose of s upplementing the statutory pr o visions and for their implementation.

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17. In view of the afores a id discussion, there is n o occasion to distinguish or t a ke a different view as s uggested by the learned couns e l for the revenue from w hat has already been held by t h e Coordinate Bench.

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18. Keeping in view the law laid down by the C oordinate Bench (supra), noti c es issued by the JAO u nder Section 148 of the Act, 19 6 1 and the proceedings initiated thereafter without co n ducting the faceless a ssessment as envisaged unde r Section 144B of the A ct, 1961, have been found t o be contrary to the p rovisions of the Act, 1961 and accordingly notices d ated 28.02.2023, 16.03.20 2 3, 20.03.2024 and 3 0.03.2023 and order dated 30.03.2023, are set aside f or want of jurisdiction.

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MOHIT GOYAL 2024.08.31 12:33 I attest to the accuracy and integrity of this document

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CWP-21460-2024 (O&M)

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Page 3 of 3

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19. The respondents-reve n ue would be, however, a t liberty to follow the procedu r e as laid down under t he Act, 1961 and proceed accor d ingly, if so advised.

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20. All the writ petitio n s are allowed. The interim order passed by the Co u rt shall stand merged w ith the present order.”

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Keepi n g in view above, we allow thi s Writ Petition in the aforesai d terms. The observations and order p a ssed above shall apply mutati s mutan d is to the present case. Acc o rdingly, notice issued by th e Jurisdi c tional Assessing Officer u/s 148 dated 30.03.2024, an d conseq u ential proceedings are set asid e .