ANITA BHANDARI vs. INCOME TAX OFFICER AND OTHERS

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CWP/19170/2025HC Punjab & HaryanaPHHC01103120202511 July 2025Author: MRS. JUSTICE LISA GILL,MRS. JUSTICE SUDEEPTI SHARMA2 pages
AI SummaryRemanded

What did the High Court hold?

The High Court noted that a co-ordinate bench had previously allowed writ petitions on the same issue raised by the petitioner, in the cases of Jatinder Singh Bhangu and Jasjit Singh, by granting liberty to the revenue to follow the prescribed procedure. In the present case, since an appeal was pending before the Appellate Authority, the writ petition was disposed of with a direction to the Appellate Authority to decide the petitioner's appeal in terms of the aforementioned judgments. The court did not decide the merits of the jurisdictional issue but directed the appellate authority to consider it in light of the precedents. All pending applications were also disposed of.

What were the facts?

The petitioner, Anita Bhandari, challenged a notice dated March 25, 2023, issued under Section 148 of the Income Tax Act, 1961, an order dated March 23, 2024, under Section 147/144-B, and a demand notice dated March 23, 2024, under Section 156, all pertaining to Assessment Year 2016-2017. The petitioner argued that the issuing authority lacked jurisdiction due to a CBDT circular dated March 29, 2022, which vested exclusive power to issue Section 148 notices with the National Faceless Assessment Centre (NFAC). The petitioner also stated that an appeal was pending before the Appellate Authority. The respondents, represented by the Income Tax Officer and others, did not dispute the petitioner's contentions.

What were the issues?

1. Whether the notice dated March 25, 2023, issued under Section 148 of the Income Tax Act, 1961, and consequential proceedings for AY 2016-2017 are without jurisdiction, in light of the CBDT circular dated March 29, 2022, which grants exclusive power to the NFAC to issue such notices (question of law). Assessee's Contention: The petitioner argued that the issuing authority lacked jurisdiction to issue the notice under Section 148, relying on the CBDT circular dated March 29, 2022, which stipulated that the NFAC has exclusive power in this regard. The petitioner also pointed to judgments of a co-ordinate bench in Jatinder Singh Bhangu vs. Union of India and Jasjit Singh vs. Union of India, which allowed writ petitions on similar grounds. The petitioner further submitted that an appeal was pending before the Appellate Authority. Revenue's Contention: The learned counsel for the Union of India did not dispute the petitioner's contentions.

Which sections of the Income-tax Act were involved?

Section 148,Section 147,Section 144-B,Section 156

AI-generated summary — verify with the full judgment below

CWP-19170-2025 (O&M) 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 163 CWP-19170-2025 (O&M) Date of Decision:-11.07.2025 Anita Bhandari ...Petitioner Vs. Income Tax Officer, Ward 1, Panchkula & ors. ...Respondents CORAM: HON'BLE MRS. JUSTICE LISA GILL HON'BLE MRS. JUSTICE SUDEEPTI SHARMA Present: Mr. B.M. Monga, Mr. Rohit Kaura, Mr. Rajiv Sharma, Advocates for the petitioner. Mr. Saurabh Kapoor, Sr. Standing counsel with Mr. Rana Gurtej Singh, Jr. Standing counsel with Ms. Muskan Gupta, Ms. Muskan Chauhan, Advocates for the respondents. *** SUDEEPTI SHARMA, J.

1.

Challenge in the present petition is to notice dated 25.03.2023 issued under Section 148 of the Income Tax Act, 1961 (for short ‘Act 1961’); order dated 23.03.2024 issued under Section 156 of the Act, 1961 and all consequential actions, for AY 2016-2017. 2. Learned counsel for the petitioner contends that the issue involved in the present writ petition is covered by the judgment passed by a Co-ordinate and others, passed in CWP No. 15745-2024 and connected matter, decided on 19.07.2024 and Jasjit Singh vs. Union of India and others (CWP No. 21509- 2023 and other connected matters), decided on 29.07.2024. Learned counsel for the petitioner has further submitted that the petitioner has preferred an appeal and the same is pending before the Appellate Authority. Gaurav Arora 2025.07.18 15:53 I attest to the accuracy and integrity of this document

CWP-19170-2025 (O&M) 2

3.

Learned counsel appearing for Union of India has also not disputed the same.

4.

We have heard learned counsel for the parties and perused the whole records of the case.

5.

The petitioner has challenged the notice dated 25.03.2023 issued under Section 148 of the Income Tax Act, 1961 (for short ‘Act 1961’); order dated 23.03.2024 issued under Section 156 of the Act, 1961 and all consequential actions, for AY 2016-2017 on the ground that the Issuing Authority had no juri iction to issue the same, in view of the circular/notification dated 29.03.2022 of the CBDT, wherein, it has been specifically enumerated that the NFAC has exclusive power to issue the notice under Section 148 of the Act, 1961. 6. 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.

7.

Since in the present case, the appeal is pending before the Appellate Authority, the writ petition is disposed of with a direction to the Appellate Authority to decide the appeal of the petitioner, in terms of the judgments mentioned above.

8.

All the pending applications, if any, also stand disposed of. (LISA GILL)

(SUDEEPTI SHARMA) JUDGE JUDGE 11.07.2025

Gaurav Arora Whether speaking/reasoned : Yes/No Whether reportable : Yes/No Gaurav Arora 2025.07.18 15:53 I attest to the accuracy and integrity of this document

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