Allowed

Surjit Kumar Garg v. Union of India and Others

Punjab & Haryana HC19 Sept 2024CWP/23971/2024

Case brief

AI extract

What is this about?

Writ petition challenging an income tax reassessment notice issued without the mandated faceless assessment procedure. Following earlier judgments holding Board circulars cannot override the statute, the court set aside the Section 148 notice dated 26.03.2024 and consequential proceedings for want of jurisdiction.

What did the court decide?

Section 148 notice dated 26.03.2024 and all consequential reassessment proceedings set aside for want of jurisdiction.

Surjit Kumar Garg Vs Union of India and Others — Income Tax | Punjab & Haryana HC (2024)

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CWP-23971-2024 (O&M)

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Page 1 of 3

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109

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IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

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CWP-23971-2024 (O&M)

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Date of Decision: 19.09.2024

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SURJIT KU M AR GARG

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. . . . Petitione r Vs.

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UNION OF I N DIA 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 MR. JUSTICE SANJAY VASHISTH ******

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Present: M r. Manpreet Singh Kanda, Ad v ocate for the petitioner. M r. Ranvijay Singh, Sr. Standin g Counsel f or the respondents/Revenue.

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SANJEEV PRAKASH SHARMA, J.(Oral)

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Notice of motion.

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Mr. R a nvijay Singh, Sr. Standing Cou n sel accepts notice on behalf o f respon d ents/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 2024.09.20 10:21 I attest to the accuracy and integrity of this document

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CWP-23971-2024 (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 2024.09.20 10:21 I attest to the accuracy and integrity of this document

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CWP-23971-2024 (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. A c cordingly, notice issued b y Jurisdi c tional Assessing Officer under S ection 148 dated 26.03.2024 a s well as the consequential proceedings a re set aside.