NAMAN TANEJA vs. INCOME TAX OFFICER AND ORS

Facts

The petitioner, Naman Taneja, challenged notices dated 15.03.2024 issued under Section 148A(d) and Section 148 of the Income Tax Act, 1961, for Assessment Year 2018-2019. The challenge was based on the contention that the issuing authority lacked jurisdiction due to a CBDT circular dated 29.03.2022, which purportedly granted exclusive power to the National Faceless Assessment Centre (NFAC) to issue such notices. The revenue, represented by the Income Tax Officer and Union of India, did not dispute the petitioner's contention regarding the applicability of previous judgments.

Held

The High Court allowed the writ petition, disposing of it in terms of the judgments passed by a co-ordinate bench in Jatinder Singh Bhangu's case (decided on 19.07.2024) and Jasjit Singh's case (decided on 29.07.2024). In those cases, the writ petitions were allowed on the same issue, with liberty granted to the revenue to follow the procedure laid down under the Act, 1961, and proceed accordingly if so advised. The reasoning was based on the established precedent that the NFAC has exclusive power to issue notices under Section 148 of the Act, 1961, as per the CBDT circular. The operative direction was to dispose of the petition in line with these judgments, implying the quashing of the impugned notices and granting liberty to the revenue to initiate fresh proceedings if permissible under law.

Key Issues

1. Whether the notices dated 15.03.2024 issued under Section 148A(d) and Section 148 of the Income Tax Act, 1961, for AY 2018-2019 are invalid on the grounds that the issuing authority lacked jurisdiction, in light of the CBDT circular dated 29.03.2022 which allegedly vests exclusive power with the NFAC to issue Section 148 notices? (Question of law). Assessee's contention: The issuing authority had no jurisdiction to issue the notices due to the CBDT circular dated 29.03.2022, which specifies that the NFAC has exclusive power to issue notices under Section 148 of the Act, 1961. The assessee relied on the judgments in Jatinder Singh Bhangu vs. Union of India and others (CWP No. 15745-2024) and Jasjit Singh vs. Union of India and others (CWP No. 21509-2023). Revenue's contention: The revenue did not dispute the petitioner's contention and implicitly accepted the applicability of the cited precedents.