HEM LATA vs. INCOME TAX OFFICER WARD 5(5) CHANDIGARH AND OTHERS

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CWP/10059/2025HC Punjab & HaryanaPHHC01056261202508 April 2025Bench: MR. JUSTICE ARUN PALLI,MRS. JUSTICE SUDEEPTI SHARMA2 pages
AI SummaryRemanded

What did the High Court hold?

The High Court allowed the writ petition, disposing of it in terms of the judgments passed in Jatinder Singh Bhangu vs. Union of India (CWP No. 15745-2024) decided on July 19, 2024, and Jasjit Singh vs. Union of India (CWP No. 21509-2023) decided on July 29, 2024. In those cases, similar writ petitions were allowed, and the revenue was granted liberty to follow the procedure laid down under the Act, 1961, and proceed accordingly if so advised. The reasoning was based on the precedent set by the co-ordinate benches on the same issue. The operative direction was to dispose of the writ petition in terms of the aforementioned judgments, implying the quashing of the impugned notice and granting liberty to the revenue to issue a fresh notice if permissible under the law and procedure.

What were the facts?

The petitioner, Hem Lata, challenged a notice dated March 18, 2024, issued under Section 148 of the Income Tax Act, 1961, for Assessment Year 2020-2021. The challenge was based on the contention that the issuing authority lacked jurisdiction, citing a CBDT circular dated March 29, 2022, which allegedly vested exclusive power to issue such notices under Section 148 with the National Faceless Assessment Centre (NFAC). The revenue, represented by the Income Tax Officer, Ward 5(5), Chandigarh, and others, did not dispute the petitioner's submissions regarding the applicability of prior judgments.

What were the issues?

1. Whether the notice dated March 18, 2024, issued under Section 148 of the Income Tax Act, 1961, for AY 2020-2021, is without jurisdiction, in light of the CBDT circular dated March 29, 2022, which purportedly grants exclusive power to the NFAC to issue such notices? (Question of law/mixed law and fact, turning on Section 148 of the Act and CBDT Circular dated 29.03.2022). Assessee's contention: The notice is bad in law as the issuing authority lacked jurisdiction, relying on the CBDT circular dated March 29, 2022, which states that the NFAC has exclusive power to issue notices under Section 148. The assessee referred to judgments in Jatinder Singh Bhangu vs. Union of India and Jasjit Singh vs. Union of India. Revenue's contention: The revenue did not dispute the petitioner's submissions regarding the applicability of the cited judgments.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

CWP-10059-2025 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 140 CWP-10059-2025 (O&M) Date of Decision:-08.04.2025 Hem Lata ....Petitioner Vs. Income Tax Officer, Ward 5 (5), Chandigarh & ors. ...Respondents CORAM: HON'BLE MR. JUSTICE ARUN PALLI HON'BLE MRS. JUSTICE SUDEEPTI SHARMA Present: Mr. Kartik Bansal, Advocates for the petitioner. Mr. Vaibhav Gupta, Sr. Standing counsel for the respondent. *** SUDEEPTI SHARMA, J. 1. Challenge in the instant writ petition is to notice dated 18.03.2024 issued under Section 148 of the Income Tax Act, 1961 (for short “Act 1961”) for AY 2020-2021. 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 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 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 . 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 Gaurav Arora 2025.04.09 10:44 I attest to the accuracy and integrity of this document

CWP-10059-2025 2 whole records of the case. 5. The petitioner has challenged the notice dated 18.03.2024 issued under Section 148 of the Act, 1961 for AY 2020-2021, on the ground that he had no jurisdiction 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. In view of the above, the 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 8. All the pending applications, if any, also stand disposed of. (ARUN PALLI) (SUDEEPTI SHARMA) JUDGE JUDGE 08.04.2025

Gaurav Arora

Whether speaking/reasoned : Yes/No Whether reportable : Yes/No Gaurav Arora 2025.04.09 10:44 I attest to the accuracy and integrity of this document

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