Allowed

Khanna Paper Mills Ltd. v. Assistant/Deputy Commissioner of Income Tax, CIRLCE-1, Amritsar

Punjab & Haryana HC12 Sept 2024CWP/9299/2023

Case brief

AI extract

What is this about?

Petitioner challenged notices issued by the Jurisdictional Assessing Officer under Section 148 of the Income Tax Act, 1961 contrary to the faceless assessment regime under Section 144B. Following Jasjit Singh and Jatinder Singh Bhangu judgments, the court quashed both notices and consequential proceedings.

What did the court decide?

Section 148 notices dated 10.04.2023 and 07.04.2023 and consequenial proceedings quashed; writ petitions allowed.

Khanna Paper Mills Ltd. Vs Assistant/Deputy Commissioner… — Income Tax | Punjab & Haryana HC (2024)

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CWP-9299-2023 (O&M) and connected case

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104+239

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IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

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1. CWP-9299-2023 (O&M)

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KHANNA P A PER MILLS LTD.

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. . . . Petitione r

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Vs.

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ASSISTANT / DEPUTY COMMISSIONER O F INCOME TAX, CIRLCE-1, AMRITSAR . . . . Responden t **** 2. CWP-9285-2023 (O&M) KHANNA P A PER MILLS LTD. . . . . Petitione r

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Vs.

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ASSISTANT / DEPUTY COMMISSIONER O F INCOME TAX, CIRLCE-1, AMRITSAR

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. . . . Responden t

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Date of Decision: 12.09.2024

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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. Abhinav Narang, Advocate f or the petitioners.

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M rs. Urvashi Dhugga, Sr. Stand i ng Counsel f or the respondents/Revenue.

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SANJEEV PRAKASH SHARMA, J.(Oral)

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CM-14944-CWP-2024 and CM-14964-CWP-2024

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A pplications for placing on reco r d written statements along wit h

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annexures on behalf of respondents are allow e d.

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R egistry to place the same at ap p ropriate place.

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MOHIT GOYAL 2024.09.13 11:07 I attest to the accuracy and integrity of this document

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CWP-9299-2023 (O&M) and connected case

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Main cases

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Learne d counsel for the petitioners h as submitted that although th e legal a r gument has not been raised in t he petitions, but he submits tha t the iss u e stands covered by the judgm e nt passed 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.

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This C ourt Jasjit Singh (supra) h a s held that the Jurisdictiona l Assess i ng Officer would not be co m petent to issue notice unde r Sectio n 148 of the Income Tax Act, 1961 in view of the Faceles s

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regime . This Court in Jasjit Singh (su p ra) held as under:

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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

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MOHIT GOYAL 2024.09.13 11:07 I attest to the accuracy and integrity of this document

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CWP-9299-2023 (O&M) and connected case

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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. 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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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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Learne d counsel for the Revenue th o ugh objects on the ground o f argum e nts not being taken up in the pe t itions, but candidly accepts tha t the fac t ual position is what as was st a ted by learned counsel for th e petitio n ers, and it would be covered b y the judgment of this Court i n Jasjit Singh (supra).

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MOHIT GOYAL 2024.09.13 11:07 I attest to the accuracy and integrity of this document

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CWP-9299-2023 (O&M) and connected case

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Keepi n g in view above, we allow thes e Writ Petitions in the aforesai d terms. The observations and order p a ssed above shall apply mutati s mutan d is to the present cases. A ccordingly, notice issued b y Jurisdi c tional Assessing Officer under S ection 148 dated 10.04.2023 i n CWP- 9 299-2023 and notice under S e ction 148 dated 07.04.2023 i n CWP- 9 285-2023 as well as the conse qu ential proceedings are quashe d and set aside.