NEELU PAHWA vs. INCOME TAX OFFICER AND OTHERS

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CWP/11094/2025HC Punjab & HaryanaPHHC01060968202524 April 2025Bench: MRS. JUSTICE LISA GILL,MRS. JUSTICE SUDEEPTI SHARMA2 pages
AI SummaryRemanded

What did the High Court hold?

The High Court held that the present writ petition is disposed of in terms of the judgments passed by a Co-ordinate Bench in Jatinder Singh Bhangu's case (decided on July 19, 2024) and Jasjit Singh's case (decided on July 29, 2024). These previous judgments had allowed writ petitions on similar issues, granting liberty to the revenue to follow the procedure laid down under the Act, 1961, and proceed accordingly if so advised. The reasoning is based on the precedent set by the co-ordinate benches regarding the jurisdiction for issuing Section 148 notices in light of the relevant CBDT notifications. The operative direction is to dispose of the writ petition in terms of the aforementioned judgments.

What were the facts?

The petitioner, Neelu Pahwa, challenged a notice dated March 30, 2025, issued under Section 148 of the Income Tax Act, 1961, and all consequential actions for Assessment Year 2021-2022. The challenge was based on the contention that the issuing authority lacked jurisdiction. The petitioner argued that a CBDT circular/notification dated March 29, 2022, vested exclusive power to issue such notices with the National Faceless Assessment Centre (NFAC). The respondents, represented by the Income Tax Officer, Ward 2(1), Faridabad, and others, did not dispute the petitioner's submissions regarding the applicability of previous judgments.

What were the issues?

1. Whether the notice dated March 30, 2025, issued under Section 148 of the Income Tax Act, 1961, for AY 2021-2022 is invalid due to lack of jurisdiction of the issuing authority, concerning the exclusive power of the NFAC as per CBDT notification dated March 29, 2022? (Question of law). Assessee's Contentions: The petitioner contended that the notice was issued without jurisdiction, citing the CBDT circular dated March 29, 2022, which allegedly grants exclusive power to the NFAC to issue notices under Section 148. The petitioner relied on 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). Revenue's Contentions: The learned counsel for the Union of India did not dispute the petitioner's contentions.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

CWP-11094-2025 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 167 CWP-11094-2025(O&M) Date of Decision:-24.04.2025 Neelu Pahwa ....Petitioner Vs. Income Tax Officer, Ward 2 (1), Faridabad & 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. Varun Issar, Sr. Standing counsel with Ms. Pridhi Sandhu, Jr. Standing counsel for the respondents. *** SUDEEPTI SHARMA, J. 1. Challenge in the present petition is to notice dated 30.03.2025 issued under Section 148 of the Income Tax Act, 1961 (for short ‘Act 1961”) and all consequential actions, 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 whole records of the case. 5. The petitioner has challenged the notice dated 30.03.2025 issued Gaurav Arora 2025.04.28 17:50 I attest to the accuracy and integrity of this document

CWP-11094-2025 2 under Section 148 of the Act, 1961 and all consequential actions, for AY 2021-2022, 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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