In a recent case, the Punjab and Haryana High Court has set aside the notice issued under section 148 of the Income Tax Act, 1961 which was issued without conducting faceless assessment.
Sai Vinayakka Education Society, the petitioner filed the petition challenging a show cause notice issued under section 148 of the act. It was viewed 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, decided by the Coordinate Bench titled as Jatinder Singh Bhangu vs. Union of India and others.
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In the case, the Coordinate Bench 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.
In the said case, the court viewed that 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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A division bench comprising Justice Sanjeev Prakash Sharma and Justice Sanjay Vashisth
allowed the Writ Petition in the view of observation made under the case and set aside the notice issued by the Jurisdictional Assessing Officer u/s 148 of the Income Tax Act, 1961.
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