BHAVYA CHAWLA vs. INCOME TAX OFFICER WARD 1(1) FARIDABAD AND OTHERS

Learned counsel for petitioner submits that notice dated 28.03.2023, issued under Section 148 of the Income Tax Act, 1961 (for short ‘Act 1961’), for the Assessment Year 2016-2017 and all subsequent proceedings, should be set aside 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 Co-ordinate and others, passed in CWP No. 15745-2024 and connected matter, decided Omkar Singh 2025.09.01 10:51 I attest to the accuracy and integrity of this document High Court, Chandigarh

Learned counsel appearing for respondent-Income Tax has also not disputed the same.

We have heard learned counsel for the parties and perused the file with their able assistance.

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 Omkar Singh 2025.09.01 10:51 I attest to the accuracy and integrity of this document High Court, Chandigarh

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. (LISA GILL)