In a significant case, the High Court of Punjab and Haryana set aside the order under section 148 of the Income tax Act, 1961 as it was passed without following the procedure under section 144 B of the act.
Mr. Prateek Gupta, Advocate for the petitioner and Ms. Urvashi Dhugga, Sr. Standing Counsel, accepted on behalf of the revenue.
M.L. International, the petitioner filed the petition. In the case of Jasjit Singh vs. Union of India and others and by the Coordinate Bench Jatinder Singh Bhangu vs. Union of India and others,it was held that “16. We are in agreement with the view taken by the Coordinate Bench and hold that such circular or instructions by the Board could not have been issued to override statutory provisions or to make them otiose or obsolete.
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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.
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.
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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While allowing the petition, the division bench of Justice Sanjeev Prakash Sharma and Justice Sanjay Vashisth set aside the notice issued by the Jurisdictional Assessing Officer under Section 148 of the Income Tax Act and all consequential proceedings.
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