RAMAN KAPOOR vs. INCOME TAX OFFICER AND OTHERS

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CWP/11065/2025HC Punjab & HaryanaPHHC01060959202524 April 2025Bench: MRS. JUSTICE LISA GILL,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 and others (CWP No. 15745-2024) decided on 19.07.2024, and Jasjit Singh vs. Union of India and others (CWP No. 21509-2023) decided on 29.07.2024. In those cases, the Co-ordinate Bench had allowed similar writ petitions on the same issue, granting liberty to the revenue to follow the procedure laid down under the Act, 1961, and proceed accordingly if so advised. The reasoning was based on the petitioner's contention regarding the lack of jurisdiction of the issuing authority due to the CBDT circular dated 29.03.2022, which was not disputed by the revenue. The operative direction was to dispose of the petition in terms of the aforementioned precedents, implying that the impugned notices and orders were set aside, with liberty to the revenue to re-initiate proceedings if they chose to do so following the correct procedure.

What were the facts?

The petitioner, Raman Kapoor, challenged a notice dated 31.03.2023 under Section 148 of the Income Tax Act, 1961, an assessment order dated 23.03.2024 under Section 147, a demand notice, and a penalty show cause notice, all pertaining to Assessment Year 2019-2020. 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 Section 148 notices. The revenue did not dispute this contention. The High Court had previously decided similar issues in connected cases.

What were the issues?

1. Whether the notice dated 31.03.2023 issued under Section 148 of the Income Tax Act, 1961, and the subsequent assessment order dated 23.03.2024, demand notice, and penalty show cause notice for AY 2019-2020 are liable to be quashed on the ground that the issuing authority lacked jurisdiction in view of the CBDT circular dated 29.03.2022, which vests exclusive power in the NFAC to issue Section 148 notices. Assessee's Contention: The petitioner argued that the issuing authority had no jurisdiction to issue the impugned notices and orders, 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,Section 147

AI-generated summary — verify with the full judgment below

CWP-11065-2025 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 156 CWP-11065-2025(O&M) Date of Decision:-24.04.2025 Raman Kapoor ....Petitioner Vs. Income Tax Officer, Ward 3 (1), Ludhiana & ors. ...Respondents CORAM: HON'BLE MRS. JUSTICE LISA GILL HON'BLE MRS. JUSTICE SUDEEPTI SHARMA Present: Mr. Vishav Bharti Gupta, Advocate Ms. Mamta Gupta, Advocate, for the petitioner. Mr. Ranvijay Singh, Sr. Standing counsel for the respondents. *** SUDEEPTI SHARMA, J. 1. Challenge in the present petition is to notice dated 31.03.2023 issued under Section 148 of the Income Tax Act, 1961 (for short ‘Act 1961”); assessment order dated 23.03.2024 issued under Section 147 of the Act, 1961; demand notice and penalty show cause notice dated 23.03.2024 and all consequential actions, for AY 2019-2020. 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 2025.04.28 17:50 I attest to the accuracy and integrity of this document

CWP-11065-2025 2 whole records of the case. 5. The petitioner has challenged the notice dated 31.03.2023 issued under Section 148 of the Act, 1961; assessment order dated 23.03.2024 issued under Section 147 of the Act, 1961; demand notice and penalty show cause notice dated 23.03.2024 and all consequential actions, for AY 2019- 2020, 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. (LISA GILL)

(SUDEEPTI SHARMA) JUDGE JUDGE 24.04.2025

Gaurav Arora Whether speaking/reasoned : Yes/No Whether reportable : Yes/No Gaurav Arora 2025.04.28 17:50 I attest to the accuracy and integrity of this document

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