RADHA SEHGAL vs. INCOME TAX OFFICER AND OTHERS

PDF · subscribers
CWP/33931/2025HC Punjab & HaryanaPHHC01182606202515 January 2026Author: MRS. JUSTICE LISA GILL,JUSTICE (TO BE NOMINATED)3 pages
AI SummaryRemanded

What did the High Court hold?

The High Court disposed of the writ petition in terms of the decisions in Jatinder Singh Bhangu vs. Union of India and others and Jasjit Singh vs. Union of India and others. In those cases, the coordinate benches had allowed the writ petitions on similar grounds. The reasoning in Jatinder Singh Bhangu's case highlighted that Section 151A and Clause 3(b) of the notification dated 29.03.2022 clearly indicate the applicability of the faceless assessment scheme from the stage of show cause notice under Section 148. The Court found the mandate of Section 144B, 151A, read with the notification, to be lucid, and stated that office memorandums or other instructions cannot override statutory provisions. The operative direction in the cited cases was to grant liberty to the revenue to follow the procedure laid down under the Act, 1961, and proceed accordingly if so advised. The present judgment followed this precedent, implying the quashing of the impugned notice and subsequent proceedings, with liberty to the revenue to re-initiate the process correctly.

What were the facts?

The petitioner, Radha Sehgal, challenged a notice dated 07.05.2025 issued under Section 148 of the Income Tax Act, 1961, for Assessment Year 2021-2022. The challenge was based on the ground that the issuing authority lacked jurisdiction. The petitioner argued that according to CBDT circular/notification dated 29.03.2022, only the National Faceless Assessment Centre (NFAC) has the exclusive power to issue such notices. The notice was issued by the Income Tax Officer, Ward, Palampur, while the petitioner's PAN was transferred to Ludhiana on 24.10.2025. The respondents did not dispute that the issue was covered by previous judgments.

What were the issues?

1. Whether the notice issued under Section 148 of the Income Tax Act, 1961, by the jurisdictional Assessing Officer, rather than the National Faceless Assessment Centre (NFAC), is without jurisdiction, in light of CBDT circular/notification dated 29.03.2022? (Question of law) Assessee's Contentions: The petitioner contended that the issuing authority lacked jurisdiction to issue the Section 148 notice. This was based on the CBDT circular dated 29.03.2022, which allegedly vests exclusive power to issue such notices with the NFAC. The petitioner relied on coordinate bench 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), which allowed similar writ petitions. Revenue's Contentions: The respondent-Department, through its counsel, acknowledged that the petitioner's PAN was transferred to Ludhiana on 24.10.2025, while the notice was issued by the Income Tax Officer, Ward, Palampur. The revenue did not dispute that the issue was covered by the aforementioned judgments in favour of the petitioner.

Which sections of the Income-tax Act were involved?

Section 148,Section 151A,Section 144B

AI-generated summary — verify with the full judgment below

CWP-33931 of 2025 (O&M)

-1-

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

CWP-33931 of 2025 (O&M)

Date of Decision: 15.01.2026

Radha Sehgal

..... Petitioner

Versus

Income Tax Officer and others

..... Respondents

CORAM:- HON'BLE MRS. JUSTICE LISA GILL

HON'BLE MR. JUSTICE RAMESH CHANDER DIMRI

Present: Mr. Vishav Bharti Gupta, Advocate

for the petitioner.

Mr. Ranvijay Singh, Sr. Standing Counsel

Mr. Vidul Kapoor, Jr. Standing Counsel

for respondent- Department.

**** LISA GILL, J.

1.

Challenge in the present petition is to notice dated 07.05.2025, issued under Section 148 of the Income Tax Act, 1961 (for short ‘Act 1961’), for the Assessment Year 2021-2022 and all subsequent proceedings on the ground that Issuing Authority had no juri iction to issue the same, in view of circular/notification dated 29.03.2022 of the CBDT, wherein, it has been specifically enumerated that National Faceless Assessment Centre (NFAC) has exclusive power to issue notice under Section 148 of the Act, 1961. 2. Learned counsel for petitioner contends that issue involved in the present writ petition is covered by judgment passed by a Co-ordinate SANJAY KHAN 2026.01.21 09:39 I attest to the accuracy and authenticity of this document Punjab and Haryana High Court, Chandigarh

CWP-33931 of 2025 (O&M)

-2- India and others, passed in CWP No. 15745-2024 and connected matter, (CWP No. 21509-2023 and other connected matters), decided on 29.07.2024. 3. It is submitted that 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. Relevant portion of decision dated 19.07.2024 in Jatinder Singh Bhangu’s case (supra) reads as under:- “15. From the perusal of Section 151A, it is quite evident that scheme of faceless assessment is applicable from the stage of show cause notice under Section 148 as well as 148A. Clause 3(b) of notification dated 29.03.2022 issued under Section 151A clearly provides that scheme would be applicable to notice under Section 148. Even otherwise, it is a settled proposition of law that assessment proceedings commence from the stage of issuance of show cause notice. The object of introduction of faceless assessment would be defeated if show cause notice under Section 148 is issued by Juri ictional Assessing Officer. The respondents are heavily placing reliance upon office memorandum and letter issued by departmental authorities. It is axiomatic in tax jurisprudence that circulars, instructions and letters issued by Board or any other authority cannot override statutory provisions. The circulars are binding upon authorities and Courts are not bound by circulars. The SANJAY KHAN 2026.01.21 09:39 I attest to the accuracy and authenticity of this document Punjab and Haryana High Court, Chandigarh

CWP-33931 of 2025 (O&M)

-3- mandate of Section 144B, 151A readwith notification dated 29.03.2022 issued thereunder is quite lucid. There is no ambiguity in the language of statutory provisions, thus, office memorandum or any other instruction issued by Board or any other authority cannot be relied upon.”

4.

Learned counsel for the respondent-Department, on instructions from Mr. Kunal Kumar, Income Tax Officer, Ward 3(1), Ludhiana, submits that PAN of petitioner was transferred to Ludhiana on 24.10.2025, though, notice under Section 148 of Act 1961 had been issued by Income Tax Officer, Ward, Palampur. Learned counsel appearing for the respondent does not dispute that issue involved is covered in favour of petitioner in view of abovesaid decisions.

5.

Keeping in view the facts and circumstances as above, 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. 6. All the pending applications, if any, also stand disposed of accordingly.

(LISA GILL)

JUDGE

(RAMESH CHANDER DIMRI) 15.01.2026

JUDGE s.khan Whether speaking/reasoned: Yes/No Whether reportable: Yes/No SANJAY KHAN 2026.01.21 09:39 I attest to the accuracy and authenticity of this document Punjab and Haryana High Court, Chandigarh

More judgments on Section 148

All 35,022 judgments and leading authorities on Section 148 →

Recent GST High Court judgments

Search GST case law →