Instructions and Circulars can be issued Only for Supplementing Statutory Provisions: Punjab & Haryana HC sets aside Income Tax Order Contrary to Income Tax Act [Read Order]
The Court held that the instructions and circulars can be issued only for the purpose of supplementing the statutory provisions and for their implementation
![Instructions and Circulars can be issued Only for Supplementing Statutory Provisions: Punjab & Haryana HC sets aside Income Tax Order Contrary to Income Tax Act [Read Order]](https://www.taxscan.in/wp-content/uploads/2024/09/Income-tax-Income-Tax-Order-Income-Tax-Act-Statutory-Provisions-Punjab-and-Haryana-HC-taxscan.jpg "Instructions and Circulars can be issued Only for Supplementing Statutory Provisions: Punjab & Haryana HC sets aside Income Tax Order Contrary to Income Tax Act [Read Order]")
In a recent case, the Punjab and Haryana High Court held that instructions and circulars can be issued only for supplementing statutory provisions and set aside Income Tax Order Contrary to Income Tax Act,1961. Both the counsel are ad idem that the issue involved in the present petition stands finally examined and concluded by the Court in Jasjit Singh vs. Union of India and others, and...
In a recent case, the Punjab and Haryana High Court held that instructions and circulars can be issued only for supplementing statutory provisions and set aside Income Tax Order Contrary to Income Tax Act,1961.
Both the counsel are ad idem that the issue involved in the present petition stands finally examined and concluded by the Court in Jasjit Singh vs. Union of India and others, and by the Coordinate Bench in Jatinder Singh Bhangu vs. Union of India and others.
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The Court in Jasjit Singh held as “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. 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.
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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In view of the judgement , the division bench of Justice Sanjeev Prakash Sharma and Justice Sanjay Vashisth allowed the writ petition . Further held that the observations and order passed above shall apply mutatis mutandis to the present case. The court set aside the notice issued by the Jurisdictional Assessing Officer under section 148 of the Act and the consequential proceedings.
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