MANISHA AGGARWAL vs. INCOME TAX OFFICER WARD 3 PATIALA AND OTHERS

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CWP/24987/2025HC Punjab & HaryanaPHHC01136498202527 August 2025Author: MRS. JUSTICE LISA GILL,MRS. JUSTICE MEENAKSHI I. MEHTA3 pages
AI SummaryRemanded

What did the High Court hold?

The High Court allowed the writ petition, setting aside the notice dated 28.08.2025 issued under Section 148 of the Income Tax Act, 1961, for Assessment Year 2022-2023. The Court relied on its previous decisions in Jatinder Singh Bhangu vs. Union of India and others and Jasjit Singh vs. Union of India and others. The reasoning was that the scheme of faceless assessment, as applicable from the stage of show cause notice under Section 148A and 148, and as clarified by Clause 3(b) of the notification dated 29.03.2022 issued under Section 151A, mandates that such notices should be issued by the National Faceless Assessment Centre (NFAC). The Court noted that allowing the jurisdictional Assessing Officer to issue such notices would defeat the object of faceless assessment. The Court also acknowledged that while circulars and instructions from the Board are binding on authorities, courts are not bound by them, but in this instance, the statutory provisions (Section 144B, 151A read with the notification) were clear. The revenue was granted liberty to follow the procedure laid down under the Act, 1961, and proceed accordingly if so advised. No issue was expressly left undecided.

What were the facts?

The petitioner, Manisha Aggarwal, challenged a notice dated 28.08.2025 issued under Section 148 of the Income Tax Act, 1961, for Assessment Year 2022-2023. The petitioner argued that the issuing authority lacked jurisdiction due to a CBDT circular dated 29.03.2022, which vests exclusive power to issue such notices in the National Faceless Assessment Centre (NFAC). The respondents, the Income Tax Officer and others, did not dispute this contention. The High Court of Punjab and Haryana at Chandigarh considered the matter. The amount in dispute was not specified. The procedural history involved the issuance of the Section 148 notice and the subsequent writ petition challenging its validity.

What were the issues?

1. Whether the notice dated 28.08.2025, issued under Section 148 of the Income Tax Act, 1961, for Assessment Year 2022-2023, is liable to be set aside on the ground that the issuing authority lacked jurisdiction, in view of the CBDT circular dated 29.03.2022, which allegedly grants exclusive power to the National Faceless Assessment Centre (NFAC) to issue such notices? Assessee's contentions: The petitioner argued that the issuing authority had no jurisdiction to issue the notice under Section 148 of the Act, 1961, citing the CBDT circular dated 29.03.2022. This circular, according to the petitioner, specifically enumerates that the National Faceless Assessment Centre (NFAC) has exclusive power to issue notices under Section 148. The petitioner relied on judgments from a Co-ordinate Bench of the High Court 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. 21509-2023). Revenue's contentions: The learned counsel for the respondent did not dispute the contentions raised by the petitioner.

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

CWP-24987 of 2025 (O&M)

-1-

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

CWP-24987 of 2025 (O&M)

Date of Decision: 27.08.2025

Manisha Aggarwal

..... Petitioner

Versus

Income Tax Officer and others

..... Respondents

CORAM:- HON'BLE MRS. JUSTICE LISA GILL

HON'BLE MRS. JUSTICE MEENAKSHI I. MEHTA

Present: Mr. Kartik Bansal, Advocate

for the petitioner.

Mr. Saurabh Kapoor, Advocate

for respondents-Income Tax Department.

**** LISA GILL, J.

1.

Learned counsel for petitioner submits that notice dated 28.08.2025, issued under Section 148 of the Income Tax Act, 1961 (for short ‘Act 1961’), for Assessment Year 2022-2023 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 RITU SHARMA 2025.08.29 11:18 I attest to the accuracy and integrity of this document

CWP-24987 of 2025 (O&M)

-2- 21509- 2023 and other connected matters), decided on 29.07.2024. 3. Learned counsel appearing for the respondent has also not disputed the same.

4.

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

5.

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 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, RITU SHARMA 2025.08.29 11:18 I attest to the accuracy and integrity of this document

CWP-24987 of 2025 (O&M)

-3- thus, office memorandum or any other instruction issued by Board or any other authority cannot be relied upon.”

6.

In view of the 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. (LISA GILL)

JUDGE

(MEENAKSHI I. MEHTA) 27.08.2025

JUDGE ‘om’ Whether speaking/reasoned: Yes/No Whether reportable: Yes/No RITU SHARMA 2025.08.29 11:18 I attest to the accuracy and integrity of this document

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