MANISH BAGRODIA vs. INCOME TAX OFFICER

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CWP/11039/2025HC Punjab & HaryanaPHHC01062375202520 May 2025Bench: MR. JUSTICE SUDHIR SINGH,MR. JUSTICE ALOK JAIN3 pages
AI SummaryRemanded

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. The reasoning, as per the cited Jatinder Singh Bhangu judgment, was that Section 151A of the Income Tax Act, 1961, read with Clause 3(b) of the notification dated 29.03.2022, clearly indicates that the scheme of faceless assessment is applicable from the stage of the show cause notice under Section 148. The Court found no ambiguity in the statutory provisions and held that departmental circulars or instructions cannot override these statutory mandates. The object of faceless assessment would be defeated if the jurisdictional Assessing Officer issued such notices. The Court granted liberty to the revenue to follow the procedure laid down under the Act, 1961, and proceed accordingly if advised. No issue was expressly left undecided.

What were the facts?

The petitioner, Manish Bagrodia, filed a writ petition challenging a notice dated 27.03.2025 issued under Section 148 of the Income Tax Act, 1961. The petitioner's primary contention was that the issuing authority lacked jurisdiction. This was based on a CBDT circular dated 29.03.2022, which allegedly grants exclusive power to the National Faceless Assessment Centre to issue such notices. The petitioner cited previous judgments by coordinate benches of the same High Court in support of their claim. The respondent is the Income Tax Officer.

What were the issues?

1. Whether the notice dated 27.03.2025, issued under Section 148 of the Income Tax Act, 1961, is invalid due to lack of jurisdiction in the issuing authority, considering the CBDT circular dated 29.03.2022 and Section 151A of the Act. (Question of law and fact) Assessee's Contentions: - The issuing authority lacked jurisdiction to issue the Section 148 notice. - The CBDT circular dated 29.03.2022 specifically states that the National Faceless Assessment Centre has exclusive power to issue notices under Section 148. - Relied on 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). Revenue's Contentions: - No specific contentions recorded in the judgment.

Which sections of the Income-tax Act were involved?

Section 148,Section 151A,Section 144B

AI-generated summary — verify with the full judgment below

CWP-11039-2025 (O&M) -:1:- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

CWP-11039-2025 (O&M)

Date of Decision:-20.05.2025 MANISH BAGRODIA … Petitioner Versus INCOME TAX OFFICER ... Respondent -.- CORAM: HON'BLE MR. JUSTICE SUDHIR SINGH HON'BLE MR. JUSTICE ALOK JAIN Present:- Mr. Abhinav Narang, Advocate for the petitioner. **** SUDHIR SINGH

J .(Oral) Challenge in the present petition is to notice dated 27.03.2025 (Annexure P-1) issued under Section 148 of the Income Tax Act, 1961 (for short ‘Act 1961”). Petitioner has challenged notice dated 27.03.2025 issued under Section 148 of the Act, 1961, on the ground that Issuing Authority had no jurisdiction to issue the same, in view of circular/notification dated 29.03.2022 (Annexure P-2) of the Central Board of Direct Taxes, wherein, it has been specifically enumerated that National Faceless Assessment Centre has exclusive power to issue notice under Section 148 of the Act, 1961. 2. Learned counsel for petitioner contends that the issue involved in the present writ petition is covered by 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, GAURAV SOROT 2025.05.29 11:39 I attest to the accuracy and integrity of this document

CWP-11039-2025 (O&M) -:2:- 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. We have heard learned counsel for the petitioner and perused the file with his able assistance. 4. 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. Relevant portion of decision dated 19.07.2024 in Jatinder Singh Bhangu’s case (supra) reads as under:- “15. From the perusal of Section 151A, it is quite evident that scheme of faceless assessment is applicable from the stage of show cause notice under Section 148 as well as 148A. Clause 3(b) of notification dated 29.03.2022 issued under Section 151A clearly provides that scheme would be applicable to notice under Section 148. Even otherwise, it is a settled proposition of law that assessment proceedings commence from the stage of issuance of show cause notice. The object of introduction of faceless assessment would be defeated if show cause notice under Section 148 is issued by Jurisdictional Assessing Officer. The respondents are heavily placing reliance upon office memorandum and letter issued by departmental authorities. It is axiomatic in tax jurisprudence that circulars, instructions and letters issued by Board or any other authority cannot override statutory provisions. The circulars are binding upon authorities and Courts are not bound by circulars. The mandate of Section 144B, 151A readwith notification dated 29.03.2022 issued thereunder is quite lucid. There is no ambiguity in the language of statutory provisions, thus, office memorandum GAURAV SOROT 2025.05.29 11:39 I attest to the accuracy and integrity of this document

CWP-11039-2025 (O&M) -:3:- or any other instruction issued by Board or any other authority cannot be relied upon.” 5. In view of the above, 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. 6. Pending application(s), if any, shall also stand disposed of.

(SUDHIR SINGH )

JUDGE

(ALOK JAIN) 20.05.2025

JUDGE Gaurav Sorot Whether reasoned / speaking? Yes / No Whether reportable? Yes / No GAURAV SOROT 2025.05.29 11:39 I attest to the accuracy and integrity of this document

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