SURINDER KAUR vs. INCOME TAX OFFICER AND OTHERS

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CWP/10111/2025HC Punjab & HaryanaPHHC01056188202508 April 2025Bench: MR. JUSTICE ARUN PALLI,MRS. JUSTICE SUDEEPTI SHARMA2 pages
AI SummaryRemanded

What did the High Court hold?

The High Court held that the issue raised by the petitioner was covered by previous judgments of a Co-ordinate Bench in Jatinder Singh Bhangu vs. Union of India and Jasjit Singh vs. Union of India. In those cases, similar writ petitions were allowed, granting liberty to the revenue to follow the prescribed procedure under the Act, 1961, and proceed accordingly if advised. Consequently, the present writ petition was disposed of in terms of these prior decisions. The court did not expressly leave any issue undecided, but the operative direction was to follow the procedure laid down in the Act, implying the original notices and orders were vitiated by the jurisdictional issue.

What were the facts?

The petitioner, Surinder Kaur, challenged a notice dated March 21, 2024, issued under Section 148 of the Income Tax Act, 1961, along with an assessment order dated March 26, 2025, a demand notice, and a penalty show cause notice, all pertaining to Assessment Year 2020-2021. The core of the challenge was that the authority issuing these notices lacked jurisdiction due to a CBDT circular dated March 29, 2022, which stipulated that the National Faceless Assessment Centre (NFAC) has exclusive power to issue Section 148 notices. The revenue did not dispute this contention.

What were the issues?

1. Whether the notice dated March 21, 2024, issued under Section 148 of the Income Tax Act, 1961, and the consequential assessment order dated March 26, 2025, are invalid due to lack of jurisdiction, considering the CBDT circular dated March 29, 2022, which vests exclusive power to issue such notices with the NFAC? (Question of law). Assessee's contention: The petitioner argued that the issuing authority lacked jurisdiction to issue the Section 148 notice and subsequent orders, relying on the CBDT circular dated March 29, 2022, which grants exclusive power to the NFAC. The petitioner cited the judgments in Jatinder Singh Bhangu vs. Union of India and Jasjit Singh vs. Union of India as precedents. Revenue's contention: The revenue did not dispute the petitioner's contention.

Which sections of the Income-tax Act were involved?

Section 148,Section 147

AI-generated summary — verify with the full judgment below

CWP-10111-2025 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 156 CWP-10111-2025 (O&M) Date of Decision:-08.04.2025 Surinder Kaur ....Petitioner Vs. Income Tax Officer, Ward 1 (3), Ludhiana & ors. ...Respondents CORAM: HON'BLE MR. JUSTICE ARUN PALLI HON'BLE MRS. JUSTICE SUDEEPTI SHARMA Present: Mr. Vishav Bharti Gupta, Advocate Ms. Uma Bharti, Advocate, for the petitioner Mr. Ranvijay Singh, Sr. Standing counsel for the respondent. *** SUDEEPTI SHARMA, J. 1. Challenge in the present petition is to notice dated 21.03.2024 issued under Section 148 of the Income Tax Act, 1961 (for short ‘Act 1961”); impugned assessment order dated 26.03.2025 issued under Section 147 of the Act, 1961, demand notice and penalty show cause notice dated 26.03.2025 and all consequential actions, 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 whole records of the case. Gaurav Arora 2025.04.09 10:44 I attest to the accuracy and integrity of this document

CWP-10111-2025 2 5. The petitioner has challenged the notice dated 21.03.2024 issued under Section 148 of the Act, 1961; impugned assessment order dated 26.03.2025 issued under Section 147 of the Act, 1961, demand notice and penalty show cause notice dated 26.03.2025 and all consequential actions, for AY 2020-2021 on the ground that the Issuing Authority 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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