Allowed¶24

Davendra Kumar Dhama v. Assistant Commissioner of Income Tax and Others

Punjab & Haryana HC8 May 2025CWP/11512/2025

Case brief

AI extract

What is this about?

Section 148 notice set aside; Section 144B faceless assessment; Jurisdictional Assessing Officer; reassessment notice dated 17.04.2025; Income Tax Act, 1961; Sections 119 and 120; Board circulars cannot override statutory provisions; Jasjit Singh CWP No.21509 of 2023 decided 29.07.2024; Jatinder Singh Bhangu CWP No.15745 of 2024 decided 19.07.2024; Punjab and Haryana High Court; CWP-11512-2025 (O&M); Davendra Kumar Dhama; Assistant Commissioner of Income Tax; writ petition allowed; pending applications disposed.

What did the court decide?

Writ petition allowed; notice dated 17.04.2025 issued under Section 148 of the Income Tax Act by the Jurisdictional Assessing Officer and all consequential proceedings set aside; all pending applications disposed of accordingly. ¶24

Davendra Kumar Dhama Vs Assistant Commissioner of Income… — Income Tax | Punjab & Haryana HC (2025)

What the court decided

AI extract

Outcome

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Issue for consideration

Whether the writ petition should be allowed and the notice dated 17.04.2025 issued by the Jurisdictional Assessing Officer under Section 148 of the Income Tax Act, along with all consequential proceedings, set aside in view of the requirement of faceless assessment under Section 144B as settled in Jasjit Singh and Jatinder Singh Bhangu.

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Ratio / Principle

The observations and order passed in Jasjit Singh (supra) shall apply mutatis mutandis to the present case.

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Key takeaways

The writ petition is allowed and, accordingly, the notice dated 17.04.2025 issued by the Jurisdictional Assessing Officer under Section 148 of the Income Tax Act and all consequential proceedings are set aside.ratio¶24

Detailed headnote1 paragraphs

Punjab and Haryana High Court, CWP-11512-2025 (O&M), decided 08.05.2025 (Sanjeev Prakash Sharma and Meenakshi I. Mehta, JJ.; oral order by Sanjeev Prakash Sharma, J.): With counsel for the parties ad idem that the substantial issue stood finally concluded by this Court in Jasjit Singh (CWP No.21509 of 2023, decided 29.07.2024) and by the Coordinate Bench in Jatinder Singh Bhangu (CWP No.15745 of 2024, decided 19.07.2024), the Court allowed the writ petition and applied the Jasjit Singh observations and order mutatis mutandis. Relying on the earlier rulings that Board circulars/instructions cannot override statutory provisions and that notices issued by the JAO under Section 148 without conducting faceless assessment as envisaged under Section 144B of the Income Tax Act, 1961 are contrary to the Act and without jurisdiction, the notice dated 17.04.2025 issued by the Jurisdictional Assessing Officer under Section 148 of the Income Tax Act and all consequential proceedings were set aside; pending applications were disposed of accordingly.

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152 I N THE HIGH COURT OF PU N JAB AND HARYANA AT CHANDIG A RH

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C WP-11512-2025 (O&M) D ate of Decision: 08.05.2025

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Davendra Ku m ar Dhama …Petitioner

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Vs.

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Assistant Co m missioner of Income Tax and o thers …Respondents

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CORAM: HON’BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON’BLE MRS. JUSTICE MEENAKSHI I. MEHTA

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Present: M r. Vishav Bharti Gupta, Advo c ate for the petitioner. ***

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SANJEEV PRAKASH SHARMA, J.(Oral)

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N otice of motion.

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M r. Varun Issar, Jr. Standing C ounsel along with Ms. Pridh i Sandhu, Jr. S t anding Counsel, accepts notice o n behalf of the revenue. 3. L earned counsel for the parties are ad idem that the substantia l issue involve d in the present petition stands f inally examined and conclude d by this Court in CWP No.21509 of 2023 titled as Jasjit Singh vs. Union of India and others , decided on 29.07.2024, a n d by the Coordinate Bench i n CWP No.15745 of 2024 titled as Jatinder Singh Bhangu vs. Union of India and others , d e cided on 19.07.2024. This Cou r t in Jasjit Singh (supra) held a s under:

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“ 16. We are in agreement with t h e view taken by the Coordinat e B ench and hold that such circu l ar or instructions by the Boar d c ould not have been issued to ov e rride statutory provisions or to

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RAJESH KUMAR 2025.05.12 10:32 I attest the accuracy and authenticity of this order/judgment.

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[2]

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CWP-11512-2025 (O&M)

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make them otiose or obsolete. Legislative enactments having financial implications are required to be followed strictly and mandatorily. By exercising the powers contained in 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. In the opinion of this Court, instructions and circulars can be issued only for the purpose of supplementing the statutory provisions and for their implementation.

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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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RAJESH KUMAR 2025.05.12 10:32 I attest the accuracy and authenticity of this order/judgment.

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[3]

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CWP-11512-2025 (O&M)

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20. All the writ petitions are allowed. The interim order passed

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by the Court shall stand merged with the present order.”

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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 issued by the Jurisdictional Assessing Officer under Section 148 of the Income Tax Act, dated 17.04.2025 and all consequential proceedings are set aside.

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All pending applications also stand disposed of accordingly.

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(SANJEEV PRAKASH SHARMA) JUDGE

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(MEENAKSHI I. MEHTA) JUDGE

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08.05.2025 rajesh 1. Whether speaking/reasoned? : Yes/No 2. Whether reportable? : Yes/No

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RAJESH KUMAR 2025.05.12 10:32 I attest the accuracy and authenticity of this order/judgment.

Davendra Kumar Dhama v. Assistant Commissioner of Income Tax and Others

Case brief

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Davendra Kumar Dhama v. Assistant Commissioner of Income Tax and Others

Case brief

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