INDERPREET SINGH BAWA vs. INCOME TAX OFFICER AND ORS

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CWP/37050/2025HC Punjab & HaryanaPHHC01199406202523 December 2025Author: MRS. JUSTICE LISA GILL,MR. JUSTICE VIRINDER AGGARWAL3 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 in Jatinder Singh Bhangu vs. Union of India and others and Jasjit Singh vs. Union of India and others. The reasoning, as indicated by the reliance on the Jatinder Singh Bhangu case, is that Section 151A of the Income Tax Act, 1961, read with Clause 3(b) of the notification dated March 29, 2022, clearly mandates that the scheme of faceless assessment, including the issuance of show cause notices under Section 148, is applicable to the NFAC. The Court found the statutory provisions lucid and unambiguous, stating that departmental circulars or office memorandums cannot override statutory provisions. The ratio decidendi is that the issuance of a Section 148 notice by a jurisdictional Assessing Officer, when the scheme of faceless assessment under Section 151A and related notifications applies, defeats the object of faceless assessment and is therefore invalid. The operative direction was to grant liberty to the revenue to follow the procedure as laid down under the Act, 1961, and proceed accordingly, if so advised.

What were the facts?

The petitioner, Inderpreet Singh Bawa, filed a writ petition challenging a notice dated March 30, 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. This was due to a CBDT circular dated March 29, 2022, which stipulated that the National Faceless Assessment Centre (NFAC) has exclusive power to issue such notices. The petitioner argued that this procedural defect rendered the notice and subsequent proceedings invalid. The respondents, the Income Tax Officer and others, 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 an authority other than the National Faceless Assessment Centre (NFAC) is invalid, considering the CBDT circular dated March 29, 2022, and the scheme of faceless assessment? Assessee's Contention: The petitioner argued that the notice was issued without jurisdiction because, as per the CBDT circular dated March 29, 2022, only the NFAC has the exclusive power to issue notices under Section 148. 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), which dealt with similar issues. Revenue's Contention: 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-37050 of 2025 (O&M)

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IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

CWP-37050 of 2025 (O&M)

Date of Decision: 23.12.2025

Inderpreet Singh Bawa

..... Petitioner

Versus

Income Tax Officer and others

..... Respondents

CORAM:- HON'BLE MRS. JUSTICE LISA GILL

HON'BLE MR. JUSTICE VIRINDER AGGARWAL

Present: Mr. Nikhil Goyal, Advocate

for the petitioner.

Ms. Urvashi Dhugga, Sr. Standing Counsel

Mr. Vidul Kapoor, Jr. Standing Counsel

for respondents-Income Tax Department.

**** LISA GILL, J.

1.

Challenge in the present petition is to notice dated 30.03.2025, 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. SANJAY KHAN 2025.12.24 12:36 I attest to the accuracy and authenticity of this document Punjab and Haryana High Court, Chandigarh

CWP-37050 of 2025 (O&M)

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2.

Learned counsel for petitioner contends that issue involved in the present writ petition is covered by judgment passed by a Co-ordinate 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 SANJAY KHAN 2025.12.24 12:36 I attest to the accuracy and authenticity of this document Punjab and Haryana High Court, Chandigarh

CWP-37050 of 2025 (O&M)

-3- 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 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 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

(VIRINDER AGGARWAL) 23.12.2025

JUDGE s.khan Whether speaking/reasoned: Yes/No Whether reportable: Yes/No SANJAY KHAN 2025.12.24 12:36 I attest to the accuracy and authenticity of this document Punjab and Haryana High Court, Chandigarh

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