AUNJAY NATH vs. INCOME TAX OFFICER AND OTHERS

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CWP/29602/2025HC Punjab & HaryanaPHHC01158452202516 October 2025Author: MR. JUSTICE DEEPAK SIBAL,MS. JUSTICE LAPITA BANERJI2 pages
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What did the High Court hold?

The High Court allowed the writ petition, directing the revenue to follow the procedure laid down in the Income Tax Act, 1961, and proceed accordingly if advised. The Court relied on the decision of a Co-ordinate Bench in Jatinder Singh Bhangu vs. Union of India and Jasjit Singh vs. Union of India. The Court noted that Section 151A of the Act, along with Clause 3(b) of the notification dated 29.03.2022, clearly indicates that the faceless assessment scheme is applicable from the stage of the show cause notice under Section 148A. The Court emphasized that assessment proceedings commence from the issuance of the show cause notice and that the introduction of faceless assessment would be defeated if the notice is issued by a Jurisdictional Assessing Officer. The Court also stated that departmental authorities are bound by circulars and instructions issued by the Board, and that circulars cannot override statutory provisions. The Court found the language of Section 144B, 151A, and the notification dated 29.03.2022 to be lucid and unambiguous, leaving no room for reliance on office memorandums or other instructions that contradict statutory provisions.

What were the facts?

The petitioner, an assessee, challenged a notice dated 15.03.2024 issued under Section 148 of the Income Tax Act, 1961, and the consequential order dated 20.03.2025 passed under Section 147 of the Act for the assessment year 2020-2021. The petitioner contended that the issuing authority lacked jurisdiction due to a CBDT notification dated 29.03.2022, which allegedly grants exclusive power to the National Faceless Assessment Centre (NFAC) to issue such notices. The petitioner also stated that an appeal on a related matter was pending before the Appellate Authority. The respondents, the Income Tax Officer and others, did not dispute the facts.

What were the issues?

1. Whether the notice dated 15.03.2024 issued under Section 148 of the Income Tax Act, 1961, and the consequential order dated 20.03.2025 passed under Section 147 of the Act for assessment year 2020-2021 are invalid on the ground that the issuing authority lacked jurisdiction, as per the CBDT notification dated 29.03.2022. Assessee's Contention: The issuing authority had no jurisdiction to issue the notice under Section 148, relying on the CBDT notification dated 29.03.2022, which vests exclusive power in the National Faceless Assessment Centre (NFAC) for such issuances. The petitioner cited the judgment in Jatinder Singh Bhangu vs. Union of India (CWP No. 15745-2024) and Jasjit Singh vs. Union of India (CWP No. 21509 of 2023) as precedents. Revenue's Contention: The revenue's counsel did not dispute the facts presented by the petitioner.

Which sections of the Income-tax Act were involved?

Section 148,Section 147,Section 151A,Section 148A,Section 144B

AI-generated summary — verify with the full judgment below

IN THE HIGH

Sr. No.149 Aunjay Nath Income Tax Officer

CORAM : HON

HON

Present : Mr. A

Mr. Y Mr. V Mr. V for th

DEEPAK SIBAL, J

1.

Chall under Section 148 20.03.2025 passed proceedings for the had no juri iction of the CBDT, whe Assessment Centre the 1961 Act.

2.

Learn present writ petitio Court in the cases o CWP No. 15745-20 vs. Union of India decided on 29.07.2 petitioner has prefer H COURT OF PUNJAB & HARYA

Versus r, Chandigarh and others

'BLE MR. JUSTICE DEEPAK SIB 'BLE MS. JUSTICE LAPITA BAN Abhinav Narang, Advocate, for the Yogesh Putney, Senior Standing Co Vidul Kapoor, Junior Sanding Coun Vaibhav Gupta, Junior Standing Co he Income Tax Department. * * * * * J. (Oral) enge in the present petition is to of the Income Tax Act, 1961 (fo d under Section 147 of the 19 e Assessment year 2020-2021, on t CWP-29602-2025 Date of decision : 16.10.2025

.…. Petitioner

..... Respondents BAL NERJI petitioner. ounsel, with nsel and unsel, notice dated 15.03.2024 issued for short, 1961 Act), order dated 961 Act and all consequential the ground that Issuing Authority ular/notification dated 29.03.2022 umerated that National Faceless issue notice under Section 148 of ds that the issue involved in the by a Co-ordinate Bench of this on of India and others, passed in d on 19.07.2024 and Jasjit Singh 023 and other connected matters), itioner has further submitted that g before Appellate Authority. SHAMSHER SINGH 2025.10.18 10:30 I attest to the accuracy and integrity of this document Punjab and haryana high court, chandigarh

CWP-29602-2025

3.

Learn same.

4.

We h their able assistance

5.

A Co (supra) and Jasjit S raised in the prese procedure as laid d Relevant portion o (supra) reads as und "1 ass we 15 14 co int Se he dep ins sta no da lan ins

6.

As ap Authority, this writ to decide the same 19.07.2024 and Jas

16.10.

2025 shamsher

[ 2 ] ned counsel appearing for respon have heard learned counsel for the e. o-ordinate Bench of this Court in Singh's case (supra), allowed the w ent writ petition, by granting liber down under the 1961 Act and pro of decision dated 19.07.2024 in der:-

5.

From the perusal of Section 151A, it i sessment is applicable from the stage of s ell as 148A. Clause 3(b) of notification d 51A clearly provides that scheme would

48.

Even otherwise, it is a settled proposit mmence from the stage of issuance o troduction of faceless assessment would ction 148 is issued by Juri ictional A avily placing reliance upon office partmental authorities. It is axiomatic structions and letters issued by Board o atutory provisions. The circulars are bin ot bound by circulars. The mandate of Sec ated 29.03.2022 issued thereunder is qui nguage of statutory provisions, thus, struction issued by Board or any other au ppeal in the present proceedings t petition is disposed of with a dire e in terms of Jatinder Singh Bh sjit Singh's case (supra), decided o

Whether speaking/reasoned : Yes / No Whether reportable : Yes / No

ndents has also not disputed the parties and perused the file with Jatinder Singh Bhangu's case writ petitions on the same issue, as rty to the revenue to follow the oceed accordingly, if so advised. Jatinder Singh Bhangu's case is quite evident that scheme of faceless show cause notice under Section 148 as dated 29.03.2022 issued under Section be applicable to notice under Section tion of law that assessment proceedings of show cause notice. The object of be defeated if show cause notice under ssessing Officer. The respondents are memorandum and letter issued by c in tax jurisprudence that circulars, or any other authority cannot override nding upon authorities and Courts are ction 144B, 151A read with notification ite lucid. There is no ambiguity in the office memorandum or any other uthority cannot be relied upon." is pending before the Appellate ection to the Appellate Authority angu's case (supra), decided on n 29.07.2024. [DEEPAK SIBAL] JUDGE [LAPITA BANERJI] JUDGE o o SHAMSHER SINGH 2025.10.18 10:30 I attest to the accuracy and integrity of this document Punjab and haryana high court, chandigarh

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