BHUPINDER KUMAR SHARMA vs. INCOME TAX OFFICER AND OTHERS

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CWP/5023/2025HC Punjab & HaryanaPHHC01029040202521 February 2025Author: MR. JUSTICE ARUN PALLI,MR. JUSTICE DEEPINDER SINGH NALWA2 pages
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What did the High Court hold?

The High Court held that the issue was squarely covered by its previous decisions in Jatinder Singh Bhangu and Jasjit Singh. In those cases, the Court had examined the impact of faceless assessment provisions on the issuance of Section 148 notices. The Co-ordinate Bench had previously quashed notices issued by the JAO and allowed the assessees' petitions. The High Court reiterated this position, finding that notices under Section 148 of the 1961 Act cannot be issued by the Jurisdictional Assessing Officer after the introduction of faceless assessment. The ratio decidendi is that the procedural changes brought about by faceless assessment mandate that such notices must be issued in accordance with the prescribed procedure, which excludes issuance by the JAO in this context. Consequently, the petition was disposed of in terms of the earlier judgments, with liberty to the Revenue to follow the correct procedure.

What were the facts?

The petitioner, Bhupinder Kumar Sharma, filed a writ petition before the High Court of Punjab and Haryana seeking to quash a notice dated 15.03.2024, issued under Section 148 of the Income Tax Act, 1961, concerning assessment year 2021-22. The petitioner contended that post the introduction of faceless assessment under Section 151A read with Section 144B of the Act, a notice under Section 148 cannot be issued by the Jurisdictional Assessing Officer (JAO). The Revenue, represented by its counsel, did not dispute the factual position presented by the petitioner. The High Court had previously dealt with identical issues in other writ petitions.

What were the issues?

1. Whether a notice under Section 148 of the Income Tax Act, 1961, can be issued by the Jurisdictional Assessing Officer (JAO) after the introduction of faceless assessment provisions under Section 151A read with Section 144B of the Act? (Question of law) Assessee's Contention: The assessee argued that the notice under Section 148 was invalid because it was issued by the JAO, which is impermissible after the implementation of faceless assessment. The assessee relied on judgments from a Co-ordinate Bench of the High Court in CWP No. 15745-2024 (Jatinder Singh Bhangu Vs. Union of India and others) and CWP No. 21509-2023 (Jasjit Singh vs. Union of India and others). Revenue's Contention: The judgment records no specific argument from the Revenue on this issue, other than their presence and non-dispute of the factual position.

Which sections of the Income-tax Act were involved?

Section 148,Section 151A,Section 144B

AI-generated summary — verify with the full judgment below

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IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

CWP-5023-2025

Date of decision: 21.02.2025

Bhupinder Kumar Sharma

...Petitioner

Versus

Income Tax Officer, ITO Ward 5(5), Chandigarh, and others

….Respondents

CORAM: HON'BLE MR. JUSTICE ARUN PALLI

HON'BLE MR. JUSTICE DEEPINDER SINGH NALWA

Present: Mr. Rohit Kaura, Advocate, and

Mr. Rajiv Sharma, Advocate, for the petitioner.

****

ARUN PALLI, J. (Oral)

A Certiorari is prayed for, to quash the impugned notice dated 15.03.2024 (P-1), issued under Section 148 of the Income Tax Act, 1961 (‘1961 Act’), and all consequential proceedings.

Learned counsel for the petitioner submits, at the outset, that the matter in issue is squarely covered by an order and judgment, rendered by a Co-ordinate Bench of this Court in CWP No. 15745-2024 (Jatinder Singh Bhangu Vs. Union of India and others, decided on 19.07.2024), as also in CWP No. 21509-2023 (Jasjit Singh vs. Union of India and others, decided on 29.07.2024).

Served with the advance copy of the petition, Mr. Yogesh Putney, Senior Standing Counsel, along with Mr. Vaibhav Gupta, Standing Counsel, for the respondent-Income Tax Department, is present in Court. The factual position, as set out above, is not disputed.

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

As indicated earlier, the petitioner has assailed the notice dated 15.03.2024 (P-1), issued under Section 148 of the 1961 Act, as regards the assessment year 2021-22. For, post introduction of the concept of faceless assessment under Section 151A read with Section AMIT KUMAR 2025.02.24 19:34 I attest to the accuracy and authenticity of this document

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144B of the 1961 Act, notice under Section 148 of the 1961 Act cannot be issued by the Jurisdictional Assessing Officer (JAO).

An identical issue was examined by the Co-ordinate Bench of this Court in Jatinder Singh Bhangu and Jasjit Singh (supra), and upon thorough analysis of the matter, the notice(s) issued by the JAO were quashed and the petition(s) filed by the assessee(s) were allowed. But, with liberty to the respondent/Revenue to follow the procedure laid down under the 1961 Act and proceed accordingly.

In the wake of the above, and as prayed by learned counsel for the parties, the petition is disposed of, in terms of Jatinder Singh Bhangu and Jasjit Singh (supra).

(ARUN PALLI)

JUDGE

(DEEPINDER SINGH NALWA)

JUDGE 21.02.2025 Ak Sharma Whether speaking/reasoned Yes/No Whether reportable Yes/No AMIT KUMAR 2025.02.24 19:34 I attest to the accuracy and authenticity of this document

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