SUMIT BANSAL vs. INCOME TAX OFFICER AND OTHERS

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CWP/10391/2025HC Punjab & HaryanaPHHC01056711202509 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 previous judgments by a Co-ordinate Bench in Jatinder Singh Bhangu vs. Union of India and others (CWP No. 15745-2024, decided on July 19, 2024) and Jasjit Singh vs. Union of India and others (CWP No. 21509-2023, decided on July 29, 2024). In those cases, the writ petitions were allowed on similar grounds, granting liberty to the revenue to follow the prescribed procedure under the Act, 1961, and proceed accordingly if advised. The reasoning was based on the established precedent of the Co-ordinate Bench addressing the identical issue concerning the jurisdiction for issuing Section 148 notices in light of the relevant CBDT circular. The operative direction was to dispose of the present petition in line with these precedents, implying the quashing of the impugned notices and orders, with liberty to the revenue to re-initiate proceedings correctly.

What were the facts?

The petitioner, an assessee, challenged a notice dated March 26, 2024, issued under Section 148 of the Income Tax Act, 1961, along with an assessment order dated March 27, 2025, a demand notice, and a penalty show cause notice, all pertaining to Assessment Year 2020-2021. The challenge was based on the contention that the issuing authority lacked jurisdiction due to a CBDT circular dated March 29, 2022, which allegedly vested exclusive power to issue Section 148 notices with the National Faceless Assessment Centre (NFAC). The revenue, represented by the Income Tax Officer, Ward 1(3), Ludhiana, and others, did not dispute the petitioner's submissions.

What were the issues?

1. Whether the notice dated March 26, 2024, issued under Section 148 of the Income Tax Act, 1961, and the subsequent assessment order dated March 27, 2025, are 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) Assessee's contention: The issuing authority lacked jurisdiction to issue the notice under Section 148 of the Act, 1961, as per the CBDT circular dated March 29, 2022, which stipulated that the NFAC has exclusive power in this regard. Revenue's contention: The revenue did not dispute the petitioner's submissions.

Which sections of the Income-tax Act were involved?

Section 148,Section 147

AI-generated summary — verify with the full judgment below

CWP-10391-2025 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 165 CWP-10391-2025 (O&M) Date of Decision:-09.04.2025 SUMIT BANSAL ....Petitioner Vs. INCOME TAX OFFICER, WARD 1 (3), LUDHIANA AND OTHERS ...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 26.03.2024 issued under Section 148 of the Income Tax Act, 1961 (for short ‘Act 1961”); impugned assessment order dated 27.03.2025 issued under Section 147 of the Act, 1961, demand notice and penalty show cause notice dated 27.03.2025 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 Gaurav Arora 2025.04.10 16:08 I attest to the accuracy and integrity of this document

CWP-10391-2025 2 whole records of the case. 5. The petitioner has challenged the notice dated 26.03.2024 issued under Section 148 of the Act, 1961; impugned assessment order dated 27.03.2025 issued under Section 147 of the Act, 1961, demand notice and penalty show cause notice dated 27.03.2025 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 09.04.2025

Gaurav Arora Whether speaking/reasoned : Yes/No Whether reportable : Yes/No Gaurav Arora 2025.04.10 16:08 I attest to the accuracy and integrity of this document

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