AJAY BHAGWANI vs. PRINCIPAL COMMISSIONER OF INCOME TAX, DELHI - 20 & ANR.

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W.P.(C)/14900/2024HC DelhiDLHC01073050202416 December 2024Bench: HON'BLE MR. JUSTICE TUSHAR RAO GEDELA,HON'BLE THE ACTING CHIEF JUSTICE3 pages
AI SummaryDismissed

What did the High Court hold?

The Delhi High Court dismissed the writ petition. The Court noted that the issue raised by the petitioner, concerning the validity of a Section 148 notice issued by a Jurisdictional Assessing Officer (JAO) instead of a Faceless Assessing Officer (FAO) after the CBDT notification dated 29/03/2022, was covered by a previous decision of the High Court in T.K.S. Builders Pvt. Ltd V. Income Tax Officer Ward 25(3); Neutral Citation No. 2024:DHC:8330-DB. Although the specific reasoning of the cited judgment is not detailed in this order, its application led to the dismissal of the present petition. The operative direction was the dismissal of the writ petition.

What were the facts?

The petitioner, Ajay Bhagwani, filed a writ petition before the Delhi High Court challenging a notice dated 28/03/24 issued under Section 148 of the Income Tax Act, 1961, for Assessment Year 2020-21. The petitioner contended that the notice was invalid and issued without jurisdiction by the Jurisdictional Assessing Officer (JAO). The petitioner argued that such notices should only be issued in a faceless manner by a Faceless Assessing Officer (FAO) as per Section 151A of the Act and CBDT notification dated 29/03/22. The High Court had previously granted interim protection in similar cases. The matter was listed for hearing on 16.12.2024, with liberty for the respondent to file a counter-affidavit and a direction that re-assessment proceedings could continue but any adverse order would not be given effect to until the next hearing.

What were the issues?

1. Whether the notice issued under Section 148 of the Income Tax Act, 1961, dated 28/03/24 for AY 2020-21, is invalid and without jurisdiction because it was issued by the Jurisdictional Assessing Officer (JAO) instead of the Faceless Assessing Officer (FAO), as mandated by Section 151A of the Act and CBDT notification dated 29/03/22? Assessee's Contention: The petitioner argued that the notice was invalid and issued without jurisdiction by the JAO, as it should have been issued by the FAO under Section 151A of the Act read with the CBDT notification. The petitioner relied on interim orders from the High Court in similar cases that granted protection. Revenue's Contention: The judgment does not record any specific arguments from the revenue. However, it notes that the issue canvassed by the petitioner is now covered against the petitioner by a decision of the High Court in T.K.S. Builders Pvt. Ltd V. Income Tax Officer Ward 25(3).

Which sections of the Income-tax Act were involved?

Section 148,Section 151A

AI-generated summary — verify with the full judgment below

$~26 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 14900/2024 & CM APPL. 62470/2024

AJAY BHAGWANI

.....Petitioner

Through: None

versus

PRINCIPAL COMMISSIONER OF INCOME TAX, DELHI - 20 & ANR

.....Respondent Through: Mr. Gaurav Gupta, Senior Standing Counsel with Mr. Shivendra Singh, Mr. Yojit Pareek, Advocates.

CORAM:

HON'BLE THE ACTING CHIEF JUSTICE

HON'BLE MR. JUSTICE TUSHAR RAO GEDELA

O R D E R %

16.12.2024 1. None appears for the petitioner. 2. The petitioner has filed the present petition inter alia praying as under:- “i. Issue a writ, order or direction more particularly a writ in the nature of certiorari for quashing the impugned notice u/s 148 of Income tax Act, 1961 ('the Act') dated 28/03/24 for AY 2020-21 issued by the Jurisdictional Assessing Officer (JAO); the issue of notice u/s 148 by the JAO being invalid and without jurisdiction as the same is to be issued only in a faceless manner by the Faceless Assessing Officer (FAO) under the clear provisions of section 151A of the Act read with Central Board of Direct Taxes (CBDT) notification dated 29/03/22; this Court vide its interim orders in innumerable cases in challenge to issuance of notice u/s This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 03/07/2025 at 20:37:03

148 by the JAO and not by the FAO granted interim protection & that more recently this Court vide its interim orders dated 16/10/24 in three cases on identical challenge to issuance of notice u/s 148 by the JAO and not by the FAO granted interim protection and had also noted that a batch of matters on this issue is listed before this Court on 16/12/24; ii. Award cost of these proceedings to the Petitioner.”

3.

The present petition was listed on 23.10.2024 when this Court had passed the following order:- “3. The petitioner has filed the present petition impugning the notice dated 28.03.2024 issued under Section 148 of the Income Tax Act, 1961 (hereafter the Act) in respect of the assessment year 2020-21 on the ground that the Jurisdictional Assessing Officer (hereafter JAO) did not have the jurisdiction to issue the said notice after issuance of notification dated 29.03.2022 by the Central Board of Direct Taxes. 4. A batch of matters involving similar issue is now listed before this Court on 16.12.2024. Accordingly, list the present matter on the said date. 5. In the meantime, the respondent is at liberty to file a counter affidavit, if necessary, within a period of four weeks from date. Rejoinder thereto, if any, be filed before the next date of hearing. 6. In the meanwhile, the re-assessment proceedings will continue, however, if any adverse order is passed, the same would not be given effect to, till the next date of hearing. 7. List on 16.12.2024.”

1.

It is pointed out that the issue canvassed by the petitioner is now covered against the petitioner by decision of this Court in T.K.S. Builders This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 03/07/2025 at 20:37:03

Pvt. Ltd V. Income Tax Officer Ward 25(3); Neutral Citation No. 2024:DHC:8330-DB. 4. In view of the above, the present petition is dismissed.

VIBHU BAKHRU, ACJ

TUSHAR RAO GEDELA, J DECEMBER 16, 2024 yrj

Click here to check corrigendum, if any This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 03/07/2025 at 20:37:03

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