KARNAM SECURITIES PRIVATE LIMITED vs. DEPUTY COMMISSIONER OF INCOME TAX CENTRAL CIRCLE 1

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CWP/23522/2025HC Punjab & HaryanaPHHC01124946202529 September 2025Author: MR. JUSTICE ANUPINDER SINGH GREWAL,MR. JUSTICE DEEPAK MANCHANDA2 pages
AI SummaryRemanded

What did the High Court hold?

The High Court disposed of the petition in terms similar to the judgments in Jatinder Singh Bhangu Vs. Union of India and others and Jasjit Singh Vs. Union of India and others. These prior judgments had allowed writ petitions involving similar issues concerning the issuance of Section 148 notices. In those cases, liberty was granted to the respondents to follow the procedure laid down under the Income Tax Act, 1961, and proceed accordingly, if so advised. Therefore, the present petition was disposed of on the same basis, implying that the respondents would need to re-issue the notice, if advised, following the correct procedure as per the faceless assessment framework. The specific finding on the invalidity of the notice issued by the Jurisdictional Assessing Officer is implicit in the disposal order referencing prior judgments that allowed such challenges.

What were the facts?

The petitioner, Karnam Securities Private Limited, challenged a notice dated March 31, 2025, issued under Section 148 of the Income Tax Act, 1961, and all consequential assessment proceedings for Assessment Year 2019-2020. The petitioner argued that the notice was erroneously issued by the Jurisdictional Assessing Officer. They contended that in light of the Notification dated March 28/29, 2022, concerning faceless assessment proceedings, the National Faceless Assessment Centre (NFAC) possesses exclusive powers to issue such notices. The petitioner cited two previous decisions of the same court, CWP No.15745-2024 (Jatinder Singh Bhangu Vs. Union of India and others) and CWP No.21509-2023 (Jasjit Singh Vs. Union of India and others), which allowed similar writ petitions and granted liberty to the respondents to follow the prescribed procedure.

What were the issues?

1. Whether the notice dated 31.03.2025 issued under Section 148 of the Income Tax Act, 1961, is invalid because it was issued by the Jurisdictional Assessing Officer instead of the National Faceless Assessment Centre (NFAC), in light of the Notification dated 28/29.03.2022 concerning faceless assessment proceedings? (Question of law) Assessee's Contention: The petitioner argued that the notice was erroneously issued by the Jurisdictional Assessing Officer, as the Notification dated 28/29.03.2022 vests exclusive power to issue Section 148 notices with the NFAC. They relied on the judgments in Jatinder Singh Bhangu Vs. Union of India and others and Jasjit Singh Vs. Union of India and others, where similar petitions were allowed. Revenue's Contention: No specific contention was recorded for the revenue in the judgment.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
CWP-23522-2025 (O&M) -1- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 147 CWP-23522-2025 (O&M) Date of Decision : 29.09.2025 KARNAM SECURITIES PRIVATE LIMITED ... Petitioner Versus DEPUTY COMMISSIONER OF INCOME TAX CENTRAL CIRCLE 1 AND ANOTHER ... Respondents CORAM : HON'BLE MR. JUSTICE ANUPINDER SINGH GREWAL HON'BLE MR. JUSTICE DEEPAK MANCHANDA Present:- Mr. Shivakumar T.M., Advocate and Ms. Sanjana, Advocate, for the petitioner. Mr. Yogesh Putney, Senior Standing Counsel, Mr. Vaibhav Gupta, Junior Standing Counsel, for the respondent-Income Tax Department *** ANUPINDER SINGH GREWAL, J. (ORAL) 1. The petitioner has inter alia challenged the notice dated 31.03.2025 (Annexure P-1) issued by the respondents under Section 148 of the Income Tax Act, 1961 (hereinafter referred to as the ‘Act, 1961’) and all consequential assessment proceedings for Assessment Year 2019-2020. 2. Learned counsel for the petitioner submits that the impugned notice under Section 148 of the Act, 1961 has erroneously been issued by the Jurisdictional Assessing Officer although he has no jurisdiction to issue the same in view of the Notification dated 28/29.03.2022 which provides for faceless assessment proceedings and National Faceless Assessment Centre SANDEEP KUMAR 2025.09.29 18:00 I attest to the accuracy and

integrity of this order/judgment.

CWP-23522-2025 (O&M)

-2-

(NFAC) has exclusive powers to issue notice under Section 148 of the Act, 1961. He further submits that the Coordinate Bench of this Court in CWP No.15745-2024 -Jatinder Singh Bhangu Vs. Union of India and others and connected matter, decided on 19.07.2024 as well as CWP No.21509-2023- Whether speaking/reasoned : Yes/No

Whether reportable

: Yes/No SANDEEP KUMAR 2025.09.29 18:00 I attest to the accuracy and integrity of this order/judgment.

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