SANJAY KUMAR VIRMANI vs. INCOME TAX OFFICER AND OTHERS

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CWP/11095/2025HC Punjab & HaryanaPHHC01060323202524 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 prior judgments had allowed writ petitions on similar issues, finding that the issuing authority lacked jurisdiction based on the relevant circulars. The Court granted liberty to the revenue to follow the procedure laid down under the Act, 1961, and proceed accordingly, if so advised. The operative direction was to dispose of the petition in line with the precedent, effectively quashing the impugned notice but allowing the revenue to re-initiate proceedings if they chose to follow the correct procedure. No specific issue was left undecided.

What were the facts?

The petitioner, Sanjay Kumar Virmani, challenged a notice dated 31.08.2024 issued under Section 148 of the Income Tax Act, 1961, for Assessment Year 2018-2019, along with all consequential actions. The challenge was based on the contention 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 respondents, represented by the Income Tax Officer and others, did not dispute the petitioner's submissions regarding the applicability of prior judgments.

What were the issues?

1. Whether the notice dated 31.08.2024 issued under Section 148 of the Income Tax Act, 1961, for AY 2018-2019 is invalid due to lack of jurisdiction of the issuing authority, in light of the CBDT circular dated 29.03.2022. (Question of law) The assessee argued that the issuing authority lacked jurisdiction to issue the notice under Section 148 of the Act, 1961, citing the CBDT circular dated 29.03.2022, which allegedly vests exclusive power in the NFAC. The assessee 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). The revenue did not dispute the assessee's contentions.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

CWP-11095-2025 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 168 CWP-11095-2025(O&M) Date of Decision:-24.04.2025 Sanjay Kumar Virmani ....Petitioner Vs. Income Tax Officer, Ward 2 (3), 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 31.08.2024 issued under Section 148 of the Income Tax Act, 1961 (for short ‘Act 1961”) and all consequential actions, for AY 2018-2019. 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 31.08.2024 issued Gaurav Arora 2025.04.28 17:50 I attest to the accuracy and integrity of this document

CWP-11095-2025 2 under Section 148 of the Act, 1961 and all consequential actions, for AY 2018-2019, 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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