PAWAN KUMAR vs. DEPUTY COMMISSIONER OF INCOME TAX AND OTHERS

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CWP/27889/2025HC Punjab & HaryanaPHHC01150855202519 September 2025Author: MR. JUSTICE DEEPAK SIBAL,MS. JUSTICE LAPITA BANERJI3 pages
AI SummaryRemanded

What did the High Court hold?

The High Court noted that a coordinate bench had previously decided the same issue in *Jatinder Singh Bhangu's case* and *Jasjit Singh's case*. In those cases, the writ petitions were allowed, and the revenue was granted liberty to follow the procedure laid down under the Act, 1961, if so advised. The Court quoted from *Jatinder Singh Bhangu's case*, emphasizing that Section 151A and 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 reiterated that departmental circulars or letters cannot override statutory provisions. Since an appeal was pending before the Appellate Authority in the present case, the High Court disposed of the writ petition with a direction to the Appellate Authority to decide the appeal in terms of the aforementioned judgments.

What were the facts?

The petitioner, Pawan Kumar, challenged a notice dated 31.03.2023 under Section 148 of the Income Tax Act, 1961, an order dated 15.03.2024 under Section 147, and consequential proceedings for Assessment Year 2019-2020. The challenge was based on the assertion that the issuing authority lacked jurisdiction due to a CBDT circular dated 29.03.2022, which purportedly granted exclusive power to the National Faceless Assessment Centre (NFAC) to issue such notices. The petitioner also mentioned that an appeal was pending before an Appellate Authority. The respondents, represented by the Income Tax Department, did not dispute the petitioner's contentions.

What were the issues?

1. Whether the notice dated 31.03.2023 issued under Section 148 of the Income Tax Act, 1961, and the subsequent order dated 15.03.2024 under Section 147 of the Act, 1961, are without jurisdiction. This issue turns on the interpretation of Section 148 and Section 151A of the Act, 1961, read with CBDT circular/notification dated 29.03.2022. Assessee's contentions: The petitioner argued that the issuing authority lacked jurisdiction because the CBDT circular dated 29.03.2022 vests exclusive power to issue notices under Section 148 with the National Faceless Assessment Centre (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 of 2023). Revenue's contentions: The respondents did not dispute the petitioner's contentions.

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB & HARYANA AT

CHANDIGARH

113

CWP-27889-2025

Date of Decision: 19.09.2025

PAWAN KUMAR

..... PETITIONER

Versus DEPUTY COMMISSIONER OF INCOME TAX AND OTHERS

....RESPONDENTS

CORAM: HON’BLE MR. JUSTICE DEEPAK SIBAL

HON’BLE MS. JUSTICE LAPITA BANERJI

Present:- Mr. Rohit Kaura, Advocate

for the petitioner.

Mr. Yogesh Putney, Sr. Standing Counsel, with

Mr. Vaibhav Gupta, Jr. Standing Counsel, and

Mr. Vidul Kapoor, Jr. Standing Counsel,

for respondent-Income Tax Department.

*****

DEEPAK SIBAL, J. (Oral)

1.

Challenge in the present petition is to Notice dated 31.03.2023 issued under Section 148 of the Income Tax Act, 1961 (for short 'Act 1961"), order dated 15.03.2024 passed under Section 147 of the Act, 1961 and all consequential proceedings for the Assessment year 2019-2020, 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 the issue involved in the present writ petition is covered by judgment passed by a PRINCE SAINI 2025.09.22 21:32 I attest to the accuracy and integrity of this document

CWP-27889-2025

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Co-ordinate Bench of this Court in the cases of Jatinder Singh Bhangu vs. Union of India and others, passed in CWP No. 15745-2024 and connected A 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 PRINCE SAINI 2025.09.22 21:32 I attest to the accuracy and integrity of this document

CWP-27889-2025

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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 mandate of Section 144B, 151A read with 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."

6.

As appeal in the present proceedings is pending before the Appellate Authority, this writ petition is disposed of with a direction to the Appellate Authority to decide the same 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. [DEEPAK SIBAL]

JUDGE

[LAPITA BANERJI] 19.09.2025

JUDGE Prince

Whether speaking/reasoned: Yes/No

Whether reportable:

Yes/No PRINCE SAINI 2025.09.22 21:32 I attest to the accuracy and integrity of this document

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