CBDT Circular or Instructions could not have been issued to Over-ride Provisions under Income Tax Act: Punjab and Haryana High Court [Read Order]
The Court found that the 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
![CBDT Circular or Instructions could not have been issued to Over-ride Provisions under Income Tax Act: Punjab and Haryana High Court [Read Order]](https://www.taxscan.in/wp-content/uploads/2024/09/CBDT-CBDT-Circular-Income-Tax-Act-Income-Tax-Central-Board-of-Direct-Taxes-Punjab-and-Haryana-High-Court-taxscan.jpg "CBDT Circular or Instructions could not have been issued to Over-ride Provisions under Income Tax Act: Punjab and Haryana High Court [Read Order]")
In a recent case, the Punjab and Haryana High Court has held that circular or instructions by Central Board of Direct Taxes ( CBDT ) could not have been issued to override the provisions under Income Tax Act, 1961. Both the counsel are ad idem that the issue involved in the present petition filed by Ishwar Chand stands finally examined and concluded by the Court in CWP No.21509 of...
In a recent case, the Punjab and Haryana High Court has held that circular or instructions by Central Board of Direct Taxes ( CBDT ) could not have been issued to override the provisions under Income Tax Act, 1961.
Both the counsel are ad idem that the issue involved in the present petition filed by Ishwar Chand stands finally examined and concluded by the Court in CWP No.21509 of 2023 titled as Jasjit Singh vs. Union of India and others, and by the 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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In Jasjit Singh, the court held that such circular or instructions by the Board could not have been issued to override statutory provisions or to 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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The Court found that the 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.
A division bench of Justice Sanjeev Prakash Sharma And Justice Sanjay Vashisth It was found that the issuance of notice was contrary to the provisions of the Act, 1961 and set aside the notices issued by the Jurisdictional Assessing Officer under Section 148 of the Income Tax Act, 1961.
To Read the full text of the Order CLICK HERE
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