High Court of Punjab and HaryanaCWP/17971/2019dismissed

Mahender Pal Narang v. Central Board Of Direct Taxes, New Delhi And ORS

2020-02-12Mr. Justice Ajay Tewari,Mr. Justice Avneesh Jhingan9 pages

! " # $% & '( ! " ! "#" $%&%'(

$)'*)+),'-"%',$./0)(%1,(2

$ ,/3)"4$,)'. $")02,'2)$.1)+-./0)(%&

$(2%5%(,(,'%$

$")'.%%53)6-"%',$"()'.,'74'&%6 $ (2%$%&5'.%'(& )*++,-.-/0) . 77$,%/%. (2%$.%$.)(%.8

.,&9,&&,'7(2%$%/,&,'

4'.%$"%0(,' :; (2%'09%)<0(- := $&2$(- (2% :0( >- (2%5$%&%'(5%(,(,',& ,6%. 2%,&&4%,'/6/%.,'')$$10,$049 %$%'0%,&?12%(2%$) (%$ (2%,'&%$(,' "%0(,'&@:= >=/,,,>)'.@ =,/> (2%0(1% ;

- 0)'(2%)&&%&&%%06),9(2)(,'(%$%&($%0%,/%.4'.%$"%0(,' (2%!)'.

0B4,&,(,'0(-A ;= $&2$(- (2%A ;0( >1,665)$(()*%(2%02)$)0(%$ (2%095%'&)(,')'.146. )664'.%$(2%2%).?)5,()67),'&C)'.'( ?'09% $9(2%$&4$0%&CDC

2% $%6%/)'( )0(& )$% (2)( (2% 6)'. (2% 5%(,(,'%$ 1)& )0B4,$%. ,' (2% )&&%&&9%'( 3%)$&

A )'.

AE 2% %'2)'0%.

095%'&)(,'1)&$%0%,/%.' 8

:2%5%(,(,'%$ ,6%.,'09%()< $%(4$' $(2%)&&%&&9%'(3%)$

:E ($%)(,'7(2%,'(%$%&($%0%,/%.4'.%$ "%0(,' (2%A ;0( )&,'09% $9(2%$&4$0%&)'.06),9%.

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

(,',(%9=)>$ ,(%9=G> &4GE06)4&%=,,,> 06)4&%=;> &%0(,' =,,> &4026)'.-.4$,'7(2%5%$,. (13%)$&,99%.,)(%63 5$%0%.,'7 (2% .)(% ($)'& %$- 1)& G%,'7 4&%. $ )7$,046(4$)654$5&%&G3&402,'.44'.,/,.%. )9,63$ ,'.,/,.4)6$)5)$%'( 2,&H =,,,>&402($)'& %$,&G31)3 09546&$3)0B4,&,(,'4'.

8 )'36)1-$)($)'& %$(2%0'&,.%$)(,' $12,02,& .%(%$9,'%.$)55$/%.G3(2%%'($)6/%$'9%'($ (2%%&%$/%)'* '.,)H =,/> &402 ,'09% 2)& )$,&%' $9 (2% 095%'&)(,' $ 0'&,.%$)(,' $&402($)'& %$$%0%,/%.G3&402)&&%&&%% '$) (%$(2%&(.)3 5$,6-

; ,752 42"42 2 4)

& 8

/6 6 4'5)$(,046)$-)'.1,(24(5$%+4.,0%((2%7%'%$)6,(3

(2%5$/,&,'& &4GE&%0(,'=>-(2% 661,'7,'09%&- &2)66 G% 02)$7%)G6% ( ,'09%E()< 4'.%$ (2% 2%). ?'09% $9(2%$&4$0%&C-')9%63EE <<<<<< =/,,,>,'09%G31)3 ,'(%$%&($%0%,/%.'095%'&)(,'$ '%'2)'0%.095%'&)(,'$% %$$%.(,'06)4&%=G>

"%0(,';@ ,7 2"4 5) 7 2%,'09%02)$7%)G6%4'.%$(2%2%).?'09% $9 (2%$&4$0%&C&2)66G%0954(%.) (%$9)*,'7(2% 661,'7 .%.40(,'&-')9%63E <<<<<< =,/>,'(2%0)&% ,'09% (2%')(4$%$% %$$%.(,'06)4&% =/,,,> &4GE&%0(,'= > "%0(,'@:-).%.40(,' )&49 %B4)6( , (35%$0%'( &402,'09%)'.'.%.40(,'&2)66 G%)661%.4'.%$)'3(2%$06)4&% (2,&&%0(,'

; ,87)242 2 4)

& 8

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

@ 0(1,66$%9),'(2)( 095%'&)(,' $(, 3(2%&4G9,&&,'-2%$%6,%& 45'(2%.%0,&,' (2%"45$%9%4$(,'66 /69%" 0 62-:4 2

437/$'2%0'(%'(,',&(2)()&5%$(2% .%0,&,' (2%5%<4$(-(2%,'(%$%&(4'.%$"%0(,' (2%A ;0(,& '(095%'&)($3 $.%6)3G4(146.G%($%)(%.)*,'(095%'&)(,'% G4(($%&&%&2,&0'(%'(,'G3$%63,'745'%'($)6)$. ,$%0()<%& ,$046)$@

(0'(%'.(2)((2%)9%'.9%'(G$472(,'

1)& ($%9/%(2%2)$.&2,5&0$%)(%.G3(2%.%0,&,' (2%"45$%9%4$(,'

'6 # " 66 /6 $% 2

4 ; /$' 8

%6,)'0%,&56)0%.45'(2%.%0,&,' 4+)$)(,724$(,' " #<# "/6$%=

2$,4=

:>8AA8;8 % $%.%)6,'71,(2(2%0'(%'(,'&-$%6%/)'(5$(,' (2% 0,$046)$,&B4(%.G%61 ?85' >!(" % " 6( 6( 852%%<,&(,'75$/,&,'& '09%)<0(5$/,.%(2)( ,'09% 02)$7%)G6% 4'.%$ (2% 2%). ?$ ,(& )'. 7),'&

G4&,'%&&$5$ %&&,'C$?'09% $9(2%$&4$0%&C-&2)66 G%0954(%.,')00$.)'0%1,(2%,(2%$0)&2$9%$0)'(,6% &3&(%9 )004'(,'7$%746)$63%9563%.G3(2%)&&%&&%% 4$(2%$-(2%' G6%"45$%9%4$(,'(2%0)&%

2)& 2%6. (2)( )$$%)$& ,'(%$%&( 0954(%. ' .%6)3%. $ %'2)'0%. 095%'&)(,' &2)66 G% ()<)G6%')00$4)6G)&,&2,&2)&0)4&%.4'.4%2)$.&2,5( (2%()<5)3%$&

: 85 ,(2)/,%1(9,(,7)(%(2%2)$.&2,5-&%0(,';@,& )9%'.%.(5$/,.%(2)((2%,'(%$%&($%0%,/%.G3)')&&%&&%% '095%'&)(,'$%'2)'0%.095%'&)(,'&2)66G%.%%9%. ( G% 2,& ,'09% $ (2% 3%)$ ,' 12,02 ,( 1)& $%0%,/%.- ,$$%&5%0(,/% (2%9%(2. )004'(,'7 661%.G3(2% )&&%&&%% 8534$(2%$-06)4&%=/,,,>,&,'&%$(%.,'(2%&4GE&%0(,'= >

(2%&%0(,'@:&)&(5$/,.%(2)(,'09%G31)3 ,'(%$%&( $%0%,/%. ' 095%'&)(,' $ ' %'2)'0%. 095%'&)(,' $% %$$%.(,'06)4&%=G> &%0(,';@&2)66G%)&&%&&%.)& ?,'09% $9 (2%$ &4$0%&C ,' (2% 3%)$ ,' 12,02 ,( ,& $%0%,/%. 858

2,& )9%'.9%'( 2)& G%%' 9).% )556,0)G6% 1,(2 %

%0( $9 &( 5$,6-

- )'. 1,66 )00$.,'763)5563,'$%6)(,'()&&%&&9%'(3%)$

E)'.

&4G&%B4%'()&&%&&9%'(3%)$&C "%0(,';@ :0(.%)6&1,(20)5,()67),'&3,')'0% 0(- A -&4GE&%0(,'=@>1)&,'&%$(%.,'"%0(,';@)'.)&5%$,(&06)4&% =G>-(2%%'2)'0%.095%'&)(,'&2)66G%02)$7%)G6%4'.%$(2%2%).?)5,()6 7),'&C (2%5$%/,4&3%)$,'12,02(2%)94'(,&$%0%,/%.G3(2%)&&%&&%% 2,&,&&4%0)9%45G% $%5%<4$(,' 0 6? 2(4 '&,.%$,'7"%0(,'&;@=@>)'.@@=:> :0(-,(1)&2%6.(2)( %'2)'0%.095%'&)(,'$%0%,/%.4'.%$(2%A ;0(9)3G%$%0%,/%.,'

946(,56%&()7%&G4((2%&)9%,&(G%($%)(%.)&?.%%9%.,'09%C)((2%(,9% 12%',(,&$%0%,/%.)'.,&(G%()<%.'$%0%,5(G)&,&(1)& 4$(2%$2%6.- (2% )0((2)(%'2)'0%.095%'&)(,',&,'.,&54(%)'.(2%1,(2.$)1)6,&

0'.,(,')61,66'(9)*%).,

%$%'0%2,6%.%)6,'71,(2(2%&),.,&&4%-,( 1)& 2%6. (2)( ,'(%$%&( ' %'2)'0%. /)64% 6)'. $9& 5)$(

095%'&)(,')'.,&%<,7,G6%(()<,'(2%3%)$ $%0%,5(12%$%)&,'(%$%&( '.%6)3%.5)39%'( %'2)'0%.095%'&)(,',&,'09%,').,

%$%'( ')(4$% 2%&02%9%1,(2$%7)$.(02)$7%)G,6,(3 ,'(%$%&($%0%,/%.'

095%'&)(,')'.%'2)'0%.095%'&)(,'2)&4'.%$7'%)&%)02)'7%1,(2 (2%,'&%$(,' "%0(,'&@:= >=/,,,>)'.@ =,/> :0("%0(,'@:

.%)6&1,(2,'09% $9(2%$&4$0%&)'.)&5%0, ,05$/,&,'2)&G%%'

,'&%$(%.G31)3 &4GE&%0(,' =/,,,>-12%$%G3(2%,'(%$%&($%0%,/%.'

095%'&)(,'$%'2)'0%.095%'&)(,'-)&$% %$$%.(,'06)4&%=G>( "%0(,';@2)&G%%','064.%.4'.%$(2%2%). '09% $9(2%$&4$0%& '06)4&%=,/>("%0(,'@ -.%.40(,' , (35%$0%'(,&5$/,.%.'

,'(%$%&($%0%,/%.'095%'&)(,'$%'2)'0%.095%'&)(,' '/,%1 (2%)9%'.9%'(&-(2%.%0,&,' 5%<4$(,'

0 6?2(4.%&'(09%((2%$%&04% (2%5%(,(,'%$( 06),9(2)(,'(%$%&($%0%,/%.4'.%$"%0(,' (2%A ;0(,&(G%($%)(%.

)&095%'&)(,')'.(G%.%)6(1,(24'.%$?)5,()67),'&C2% )0((2)( (2%$%,&')9%'.9%'(0)$$,%.4(4'.%$"%0(,' =8 > :0( 1,66'(02)'7%(2%5&,(,' "%0(,' .%)6&1,(2.%.40(,'&)'.&4GE &%0(,' =8 > (2%$% .%)6& 1,(2 0)5,()6 7),'& )$,&,'7 $9 ($)'& %$

)7$,046(4$)66)'.-,('12%$%5$/,.%&)&(12)(,&(G%,'064.%.4'.%$(2% 2%).?)5,()67),'&C2%)$749%'($),&%.,&'(1%66 4'.%. !%)$'%.04'&%62)&$%6,%. ',$046)$@

G3 9%$%63$%).,'706)4&%;:2%&),.06)4&%()6*&)G4(4'.4%2)$.&2,5 G%,'70)4&%.)&)$$%)$& ,'(%$%&(G%,'7()<)G6%')00$4)6G)&,&6)4&%

A ;: &()(%&(2)("%0(,';@,&)9%'.%.(/%$09%(2%.,

,046(3-G3 .%%9,'7(2%,'09% $(2%3%)$,'12,02,(,&$%0%,/%.6)4&%;:82)& G%%',7'$%.,'12,02"%0(,'@:= >=/,,,>,&.%)6(1,(2 (2)(,'(%$%&('

095%'&)(,'$'%'2)'0%.095%'&)(,'$% %$$%.(,'06)4&%=G>

"%0(,';@&2)66G%)&&%&&%.)&?,'09% $9(2%$&4$0%&C 4+)$)(,724$(,' " #<# ? 2(412,6%.%)6,'71,(2.%.40(,' ()<)(&4$0%$%63,'745',$046)$ @

2%6.(2)()9%'.9%'(((2%5$/,&,'& :0(G3 ,')'0%0(-

0(1)&'(,'0''%0(,'1,(2(2%.%0,&,' "45$%9% 4$(,'0 6?2(4G4((9,(,7)(%(2%2)$.&2,50)4&%.G3 (2%.%0,&,' "45$%9%4$(,''6#?2(4(1)&2%6.(2)( ,'(%$%&( 4'.%$ "%0(,' A (2% A ; 0( 0'(,'4%& ( 5)$( ()*% (2% 02)$)0(%$ 095%'&)(,')'.1,66'( )661,(2,'(2%)9G,( %<5$%&&,'

?,'(%$%&(C'/,%1 .,&04&&,')G/%-1%1,(24(9&($%&5%0()$%'(,' )7$%%9%'(1,(2(2%/,%1()*%'G34+)$)(,724$(2%$%,&)'(2%$ )&5%0(-,%(2%6)'74)7% "%0(,'&@:= >=/,,,>)'.@ =,/> :0(,& 56),'-&,956%)'.4')9G,744&2%$%,&'&05% ()*,'74(&,.%),. $ 7,/,'7 )' ,'(%$5$%()(,' ( '%163 ,'&%$(%. &4GE&%0(,'& )'. 06)4&%& "45$%9%4$(,' @/$A"66 +%

82 4,7 2%6.)&4'.%$ ?

8 2%&% .%0,&,'& %<%956, 3 (2% 7%'%$)6 $46%

&()(4($30'&($40(,'(2)(1$.&2)/%(G%0'&($4%.&($,0(63 )00$.,'7((2%,$$.,')$3)'.')(4$)69%)','7-5)$(,046)$63 12%'(2%&()(4(%,&) ,&0)6'%,$$%&5%0(,/% (2%G+%0(1,(2 12,02(2%5$/,&,'1)&,'($.40%. 04$&%, (2%$%,& )9G,74,(3,'(2%&()(4($36)'74)7%-$% %$%'0%9)3G%9).%(

(2% 6%7,&6)(,/%,'(%'( ( $%&6/% (2% )9G,74,(34( , (2% &()(4($36)'74)7%,&4')9G,744&(2%'(2)(94&(G%7,/%' %

%0((2%6%7,&6)(4$%,&.%%9%.(,'(%'.)'.9%)'12)(,( &)3&2%'%%. $,'(%$5$%()(,')$,&%&'6312%'(2%1$.& 4&%.,'(2%&()(4(%)$%-'(2%,$1'(%$9&)9G,/)6%'()'.. '(9)', %&((2%,'(%'(,' (2%6%7,&6)(4$%C '/,%1 (2%)G/%-,(,&2%6.(2)((2%,'(%$%&($%0%,/%.' 095%'&)(,'$%'2)'0%.095%'&)(,',&(G%($%)(%.)&?,'09% $9 (2%$&4$0%&C)'.'(4'.%$(2%2%).?)5,()67),'&C 2%1$,(5%(,(,',&.,&9,&&%. 2)*++,-.-/0)4 2).)B$+)'/4 .:0+.:0+ %G$4)$3 -

9* 2%(2%$&5%)*,'7I$%)&'%.

%&I 2%(2%$$%5$()G6%

%&I