NIKHIL PASRICHA vs. INCOME TAX OFFICER

Facts

The petitioner, Nikhil Pasricha, filed a writ petition challenging a notice dated March 19, 2024, issued under Section 148 of the Income Tax Act, 1961, for Assessment Year 2020-2021. The notice was issued by the Income Tax Officer, Ward-I, Panipat. The petitioner argued that the issuing authority lacked jurisdiction due to a CBDT circular dated March 29, 2022, which allegedly grants exclusive power to the National Faceless Assessment Centre (NFAC) to issue such notices. The revenue, represented by the 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 in Jatinder Singh Bhangu's case (decided on July 19, 2024) and Jasjit Singh's case (decided on July 29, 2024). In those referred cases, the writ petitions were allowed on similar issues, with liberty granted to the revenue to follow the prescribed procedure under the Act, 1961, and proceed accordingly if advised. The reasoning was based on the precedent set by the co-ordinate benches of the High Court. The operative direction was to dispose of the petition in line with these earlier judgments, implying the quashing of the impugned notice and allowing the revenue to re-initiate the process if permissible under law. No issue was expressly left undecided.

Key Issues

1. Whether the notice dated March 19, 2024, issued under Section 148 of the Income Tax Act, 1961, for AY 2020-2021, is without jurisdiction, considering the CBDT circular dated March 29, 2022, which purportedly vests exclusive power to issue such notices with the NFAC? (Question of law and fact, concerning Section 148 of the Income Tax Act, 1961 and CBDT Circular dated 29.03.2022). Assessee's Contention: The petitioner contended that the Income Tax Officer, Ward-I, Panipat, lacked jurisdiction to issue the notice under Section 148, as per the CBDT circular dated March 29, 2022, which designates the NFAC with exclusive power for such issuances. The petitioner 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 learned counsel for the Union of India did not dispute the petitioner's contentions.