GAGAN DEEP SHARMA vs. INCOME TAX OFFICER AND OTHERS

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CWP/419/2025HC Punjab & HaryanaPHHC01001828202513 January 2025Bench: MR. JUSTICE ARUN PALLI,MRS. JUSTICE SUDEEPTI SHARMA2 pages
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What did the High Court hold?

The High Court allowed the writ petition, disposing of it in terms of the judgments passed in Jatinder Singh Bhangu's case (decided on 19.07.2024) and Jasjit Singh's case (decided on 29.07.2024). These prior judgments had allowed similar writ petitions on the same issue, finding that the issuing authority lacked jurisdiction due to the CBDT circular dated March 29, 2022, which stipulated that the NFAC has exclusive power to issue notices under Section 148. Consequently, the impugned notice and order were set aside. The court granted liberty to the revenue to follow the procedure as laid down under the Act, 1961, and proceed accordingly, if so advised. No specific amount was in dispute, and no issue was left undecided.

What were the facts?

The petitioner, Gagandeep Sharma, filed a writ petition challenging a notice dated March 22, 2024, issued under Section 148 of the Income Tax Act, 1961, and an order dated March 22, 2024, issued under Section 148A(d) of the Act, both pertaining to Assessment Year 2020-2021. The challenge was based on the ground that the issuing authority lacked jurisdiction due to a CBDT circular dated March 29, 2022, which purportedly vested exclusive power to issue Section 148 notices with the National Faceless Assessment Centre (NFAC). The respondents were the Income Tax Officer and the Union of India.

What were the issues?

1. Whether the notice dated 22.03.2024 issued under Section 148 of the Income Tax Act, 1961, and the order dated 22.03.2024 issued under Section 148A(d) of the Act, 1961, for AY 2020-2021, are invalid on the grounds of lack of jurisdiction of the issuing authority, in light of the CBDT circular dated 29.03.2022. (Question of law/mixed law and fact, turning on Section 148 and Section 148A of the Act, 1961, and CBDT Circular dated 29.03.2022). Assessee's Contention: The petitioner argued that the issuing authority lacked jurisdiction to issue the impugned notice and order because the CBDT circular dated March 29, 2022, specifically grants exclusive power to the NFAC to issue notices under Section 148 of the Act, 1961. The petitioner relied on 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.

Which sections of the Income-tax Act were involved?

Section 148,Section 148A

AI-generated summary — verify with the full judgment below

CWP-419-2025 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 120 CWP-419-2025 (O&M) Date of Decision:-13.01.2025 Gagandeep Sharma

....Petitioner Vs. Income Tax Officer,Ward 2, Ambala & ors. ...Respondents CORAM: HON'BLE MR. JUSTICE ARUN PALLI HON'BLE MRS. JUSTICE SUDEEPTI SHARMA Present: Mr. B.M. Monga, Mr. Rohit Kaura and Mr. Rajiv Sharma, Advocates for the petitioner Mr. Saurabh Kapoor, Sr. Standing counsel with Ms. Muskan Gupta, Advocate for the respondent-Union of India. *** SUDEEPTI SHARMA, J. 1. Challenge in the instant writ petition is to notice dated 22.03.2024 issued under Section 148 of the Income Tax Act, 1961 (for short ‘Act 1961”) and order dated 22.03.2024 issued under Section 148 A (d) of the Act, 1961, for AY 2020-2021. 2. Learned counsel for the petitioner contends that the issue involved in the present writ petition is covered by the judgment passed by a Co-ordinate Bench of this Court in the cases of Jatinder Singh Bhangu vs. Union of India and others, passed in CWP No. 15745-2024 and connected matter, decided on 19.07.2024 and Jasjit Singh vs. Union of India and others (CWP No. 21509-2023 and other connected matters), decided on 29.07.2024 . 3. Learned counsel appearing for Union of India has also not Gaurav Arora 2025.01.22 12:16 I attest to the accuracy and integrity of this document

CWP-419-2025 2 disputed the same. 4. We have heard learned counsel for the parties and perused the whole records of the case. 5. The petitioner has challenged the notice dated 22.03.2024 issued under Section 148 of the Act, 1961 and order dated 22.03.2024 issued under Section 148 A (d) of the Act, 1961, for AY 2020-2021, on the ground that the Issuing Authority had no jurisdiction to issue the same, in view of the circular/notification dated 29.03.2022 of the CBDT, wherein, it has been specifically enumerated that the NFAC has exclusive power to issue the notice under Section 148 of the Act, 1961. 6. A Co-ordinate Bench of this Court in Jatinder Singh Bhangu’s case (supra) and Jasjit Singh’s case (supra), allowed the writ petitions on the same issue, as raised in the present writ petition, by granting liberty to the revenue to follow the procedure as laid down under the Act, 1961 and proceed accordingly, if so advised. 7. In view of the above, the present writ petition is disposed of, in terms of Jatinder Singh Bhangu’s case (supra), decided on 19.07.2024 and Jasjit Singh’s case (supra), decided on 29.07.2024 8. All the pending applications, if any, also stand disposed of. (ARUN PALLI) (SUDEEPTI SHARMA) JUDGE JUDGE 13.01.2025

Gaurav Arora

Whether speaking/reasoned : Yes/No Whether reportable : Yes/No Gaurav Arora 2025.01.22 12:16 I attest to the accuracy and integrity of this document

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