Allowed

M/S Shiv Enterprises v. Union of India and Others

Punjab & Haryana HC23 Sept 2024CWP/9505/2023

Case brief

AI extract

What is this about?

Writ petition challenging a Section 148 income-tax notice issued by the JAO outside the faceless assessment regime. Relying on prior coordinate bench rulings, the court quashed the notice dated 07.04.2023 and all consequential proceedings for want of jurisdiction.

What did the court decide?

Amendment application allowed; writ petition allowed; Section 148 notice dated 07.04.2023 by JAO and consequential proceedings quashed.

M/S Shiv Enterprises Vs Union of India and Others — Income Tax | Punjab & Haryana HC (2024)

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CWP-9505-2023 (O&M)

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Page 1 of 3

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106

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IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CM-15554-CWP-2024 in/and CWP-9505-2023 (O&M) Date of Decision: 23.09.2024

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M/S SHIV E N TERPRISES

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. . . . Petitione r

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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 s. Ambika, Advocate for M r. Sandeep Goyal, Advocate f o r the petitioner. M s. Gauri Neo Rampal, Sr. Stan d ing Counsel (through VC) f or the respondents.

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SANJEEV PRAKASH SHARMA, J.(Oral)

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Amen d ment application bearing No. C M-15554-CWP-2024 has bee n moved raising additional grounds poi n ting out that issue involved i n the present case also includes the assa i ling of the notice issued by th e Jurisdi c tional Assessing Officer under section 148 of Income Tax Act , 1961 d u ring the Faceless Regime.

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Learne d counsel submits that the issue involved in the present petitio n stands finally examined and concl u ded 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

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MOHIT GOYAL 2024.09.24 11:23 I attest to the accuracy and integrity of this document

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CWP-9505-2023 (O&M)

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Page 2 of 3

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and others , decided on 19.07.2024. T h is Court in Jasjit Singh (supra )

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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 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

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MOHIT GOYAL 2024.09.24 11:23 I attest to the accuracy and integrity of this document

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CWP-9505-2023 (O&M)

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Page 3 of 3

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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

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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 sub m its that originally the argumen t was n o t taken, however, the issue al s o arises in the present case a s above.

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Keepi n g in view above submissio n s, we accordingly allow thi s amend m ent application bearing No. C M -15554-CWP-2024; take up th e main case today itself on merits and allow this Writ Petition in th e afores a id terms. The observations and order passed above shall appl y mutati s mutandis to the present case. Accordingly, notice issued b y JAO u n der Section 148 dated 07.04.2023 as well as consequentia l procee d ings initiated on the basis of sa i d notice are quashed.