JASWANT SINGH AY 2022 TO 23 vs. DEPUTY COMMISSIONER/ ASST COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 1

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CWP/21947/2025HC Punjab & HaryanaPHHC01115970202501 August 2025Author: MR. JUSTICE DEEPAK SIBAL,MS. JUSTICE LAPITA BANERJI3 pages
AI SummaryRemanded

What did the High Court hold?

The High Court, noting that a Co-ordinate Bench had previously allowed writ petitions on the same issue in Jatinder Singh Bhangu's case and Jasjit Singh's case, disposed of the present writ petition. The Court directed the Appellate Authority to decide the pending appeal in terms of the aforesaid judgments. The reasoning in Jatinder Singh Bhangu's case indicated that Section 151A of the Act, read with notification dated 29.03.2022, clearly applies the faceless assessment scheme from the stage of show cause notice under Section 148. The Court in that case held that the mandate of Section 144B and 151A read with the notification is lucid, and departmental circulars or instructions cannot override statutory provisions. The operative direction was to the Appellate Authority to decide the appeal in line with the precedents, granting liberty to the revenue to follow the prescribed procedure if so advised.

What were the facts?

The petitioner, Jaswant Singh, challenged a notice dated 04.03.2024 issued under Section 148 of the Income Tax Act, 1961, for Assessment Year 2022-2023. The challenge was based on the ground that the issuing authority lacked jurisdiction, citing a CBDT circular dated 28.03.2022 which purportedly grants exclusive power to the National Faceless Assessment Centre (NFAC) to issue such notices. The petitioner stated that an appeal was pending before the Appellate Authority. The respondents, the Income Tax Department, did not dispute the petitioner's contentions.

What were the issues?

1. Whether the issuing authority had the jurisdiction to issue a notice under Section 148 of the Income Tax Act, 1961, for Assessment Year 2022-2023, in light of the CBDT circular dated 28.03.2022, which allegedly vests exclusive power in the National Faceless Assessment Centre (NFAC). Assessee's Contention: The petitioner argued that the issuing authority lacked jurisdiction due to the CBDT circular dated 28.03.2022, which specifies that the 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 and Jasjit Singh vs. Union of India and others. Revenue's Contention: The revenue did not dispute the petitioner's contentions.

Which sections of the Income-tax Act were involved?

Section 148,Section 151A,Section 144B

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB & HARYANA AT

CHANDIGARH

113

CWP-21947-2025

Date of Decision: 01.08.2025

JASWANT SINGH

..... Petitioner

Versus THE DEPUTY COMMISSION/ASST. COMMISSIONER OF INCOME TAX AND OTHERS

....Respondents

CORAM: HON’BLE MR. JUSTICE DEEPAK SIBAL

HON’BLE MS. JUSTICE LAPITA BANERJI

Present:- Mr. Rochak Singla, 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 04.03.2024 issued under Section 148 of the Income Tax Act, 1961 (for short 'Act 1961") and all consequential proceedings for the Assessment year 2022- 2023, on the ground that Issuing Authority had no juri iction to issue the same, in view of circular/notification dated 28.03.2022 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 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 PRINCE SAINI 2025.08.05 01:40 I attest to the accuracy and integrity of this document

CWP-21947-2025 -2- 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 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 PRINCE SAINI 2025.08.05 01:40 I attest to the accuracy and integrity of this document

CWP-21947-2025 -3-

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. 7. All the pending applications, if any, also stand disposed of accordingly.

[DEEPAK SIBAL]

JUDGE

[LAPITA BANERJI] 01.08.2025

JUDGE Prince

Whether speaking/reasoned: Yes/No

Whether reportable:

Yes/No PRINCE SAINI 2025.08.05 01:40 I attest to the accuracy and integrity of this document

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