KEDAR NATH PANDEY vs. DIRECTOR GENERAL INCOME TAX (INVESTIGATION) AND ANOTHER

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CWP/36111/2025HC Punjab & HaryanaPHHC01194375202512 December 2025Author: MRS. JUSTICE LISA GILL,MR. JUSTICE PARMOD GOYAL3 pages
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What did the High Court hold?

The High Court, following its previous decisions in Jatinder Singh Bhangu vs. Union of India and others and Jasjit Singh vs. Union of India and others, allowed the writ petition. The Court noted that the scheme of faceless assessment, as evident from Section 151A and the notification dated 29.03.2022, applies from the stage of show cause notice under Section 148. The Court reiterated that while circulars and instructions from the Board are binding on authorities, courts are not bound by them if they contradict statutory provisions. The mandate of Section 144B and 151A, read with the notification, was found to be lucid, with no ambiguity. Therefore, any office memorandum or instruction overriding these statutory provisions could not be relied upon. The petition was disposed of in terms of the earlier judgments, granting liberty to the revenue to follow the prescribed procedure if so advised. All pending applications were also disposed of.

What were the facts?

The petitioner, Kedar Nath Pandey, filed a writ petition before the High Court of Punjab and Haryana challenging a notice dated 21.10.2024, issued under Section 148 of the Income Tax Act, 1961, for Assessment Year 2022-2023. The challenge was based on the ground that the issuing authority lacked jurisdiction due to a CBDT circular dated 29.03.2022, which purportedly grants exclusive power to the National Faceless Assessment Centre (NFAC) to issue such notices. The revenue, represented by the Director General Income Tax (Investigation) and another, 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, for Assessment Year 2022-2023 is invalid on the grounds that the issuing authority lacked jurisdiction, contrary to CBDT circular dated 29.03.2022 which vests exclusive power in the National Faceless Assessment Centre (NFAC)? (Question of law and fact, concerning Section 148 and Section 151A of the Act, 1961). Assessee's Contention: The petitioner argued that the issuing authority had no jurisdiction to issue the Section 148 notice, citing the CBDT circular dated 29.03.2022, which specifies that the NFAC has exclusive power. The petitioner relied on two coordinate bench judgments of the High Court: Jatinder Singh Bhangu vs. Union of India and others (CWP No. 15745-2024, decided on 19.07.2024) and Jasjit Singh vs. Union of India and others (CWP No. 21509-2023, decided on 29.07.2024), which allowed similar petitions. Revenue's Contention: The revenue did not dispute the petitioner's contentions and conceded that the issue was covered by the aforementioned judgments.

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-36111 of 2025 (O&M)

-1-

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

CWP-36111 of 2025 (O&M)

Date of Decision: 12.12.2025

Kedar Nath Pandey

..... Petitioner

Versus

Director General Income Tax (Investigation) and another

..... Respondents

CORAM:- HON'BLE MRS. JUSTICE LISA GILL

HON'BLE MR. JUSTICE PARMOD GOYAL

Present: Mr. Parminder Walia, Advocate

for the petitioner.

Mr. Ranvijay Singh, Sr. Standing Counsel

Mr. Vaibhav Gupta, Jr. Standing Counsel

for respondents-Income Tax Department.

**** LISA GILL, J.

1.

Challenge in the present petition is to notice dated 21.10.2024, issued under Section 148 of the Income Tax Act, 1961 (for short ‘Act 1961’), for the Assessment Year 2022-2023 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 2025.12.16 13:23 I attest to the accuracy and authenticity of this document Punjab and Haryana High Court, Chandigarh

CWP-36111 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 2025.12.16 13:23 I attest to the accuracy and authenticity of this document Punjab and Haryana High Court, Chandigarh

CWP-36111 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 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

(PARMOD GOYAL) 12.12.2025

JUDGE s.khan Whether speaking/reasoned: Yes/No Whether reportable: Yes/No SANJAY KHAN 2025.12.16 13:23 I attest to the accuracy and authenticity of this document Punjab and Haryana High Court, Chandigarh

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