DEEPTI GARG vs. INCOME TAX OFFICER WARD 1(1) FARIDABAD AND OTHERS

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CWP/10684/2025HC Punjab & HaryanaPHHC01057863202521 April 2025Bench: MRS. JUSTICE LISA GILL,MRS. JUSTICE SUDEEPTI SHARMA2 pages
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What did the High Court hold?

The High Court allowed the writ petition, disposing of it in terms of the judgments in Jatinder Singh Bhangu's case and Jasjit Singh's case. These previous judgments had allowed writ petitions on similar issues, 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 co-ordinate benches of the High Court dealing with identical challenges to Section 148 notices issued without jurisdiction, in light of the relevant CBDT circular. The operative direction was to dispose of the writ petition in line with these precedents, implying the quashing of the impugned notice but allowing the revenue to re-initiate the process correctly. No issue was expressly left undecided.

What were the facts?

The petitioner, Deepti Garg, filed a writ petition challenging a notice dated 30.03.2025 issued under Section 148 of the Income Tax Act, 1961, for Assessment Year 2021-2022. The petitioner argued that the issuing authority lacked jurisdiction due to a CBDT circular dated 29.03.2022, which purportedly granted exclusive power to the National Faceless Assessment Centre (NFAC) to issue such notices. The revenue, represented by the Income Tax Officer and others, did not dispute the petitioner's contention regarding the applicability of previous judgments. The High Court perused the records and heard the counsel for both parties.

What were the issues?

1. Whether the notice dated 30.03.2025, issued under Section 148 of the Income Tax Act, 1961, for AY 2021-2022, is invalid due to lack of jurisdiction in the issuing authority, considering the CBDT circular dated 29.03.2022 which allegedly vests exclusive power in the NFAC. Assessee's Contention: The petitioner contended that the notice was issued without jurisdiction, relying on the CBDT circular dated 29.03.2022, which stipulated that the NFAC has exclusive power to issue notices under Section 148 of the Act, 1961. The petitioner cited the judgments in Jatinder Singh Bhangu vs. Union of India and others (CWP No. 15745-2024) and Jasjit Singh vs. Union of India and others (CWP No. 21509-2023) as covering the present issue. Revenue's Contention: The learned counsel appearing for the Union of India did not dispute the petitioner's contention.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

CWP-10684-2025 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 143 CWP-10684-2025 (O&M) Date of Decision:-21.04.2025 Deepti Garg ....Petitioner Vs. Income Tax Officer, Ward 1 (1), Faridabad & ors. ...Respondents CORAM: HON'BLE MRS. JUSTICE LISA GILL HON'BLE MRS. JUSTICE SUDEEPTI SHARMA Present: Mr. Kartik Bansal, Advocate for the petitioner. Mr. Varun Issar, Sr. Standing counsel with Ms. Pridhi Sandhu, Advocate for the respondent. *** SUDEEPTI SHARMA, J. 1. Challenge in the instant writ petition is to notice dated 30.03.2025 issued under Section 148 of the Income Tax Act, 1961 (for short “Act 1961”) for AY 2021-2022. 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 2025.04.23 12:04 I attest to the accuracy and integrity of this document

CWP-10684-2025 2 whole records of the case. 5. The petitioner has challenged the notice dated 30.03.2025 issued under Section 148 of the Act, 1961 for AY 2021-2022, 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. (LISA GILL) (SUDEEPTI SHARMA) JUDGE JUDGE 21.04.2025

Gaurav Arora

Whether speaking/reasoned : Yes/No Whether reportable : Yes/No Gaurav Arora 2025.04.23 12:04 I attest to the accuracy and integrity of this document

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