KARAN VERMA vs. DCIT/ACIT, CIRCLE 1, AMRITSAR

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CWP/11526/2024HC Punjab & HaryanaPHHC01065910202404 September 2025Bench: MRS. JUSTICE LISA GILL,MRS. JUSTICE MEENAKSHI I. MEHTA3 pages
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What did the High Court hold?

The High Court allowed the application and disposed of the writ petition in terms of the judgments in Jatinder Singh Bhangu's case and Jasjit Singh's case. In Jatinder Singh Bhangu's case, the Court had held that the scheme of faceless assessment is applicable from the stage of show cause notice under Section 148 and 148A, as evident from Section 151A and notification dated March 29, 2022. The Court emphasized that assessment proceedings commence from the issuance of a show cause notice and that the object of faceless assessment would be defeated if the notice is issued by the Jurisdictional Assessing Officer. It was further stated that departmental circulars or letters cannot override statutory provisions. Therefore, the notices and order issued in violation of the faceless assessment scheme were set aside, with liberty granted to the revenue to follow the prescribed procedure.

What were the facts?

The petitioner, Karan Verma, filed a writ petition challenging a notice dated April 15, 2024, under Section 148 of the Income Tax Act, 1961, for Assessment Year 2017-18. The petition also challenged an order dated April 15, 2024, under Section 148A(d) and a notice dated March 23, 2024, under Section 148A(b) of the Act. The petitioner sought to quash these notices and the order. The case was heard by the High Court of Punjab and Haryana at Chandigarh. An application was filed for the disposal of the present petition in terms of previous judgments of the same court.

What were the issues?

1. Whether the notices and order issued under Sections 148, 148A(b), and 148A(d) of the Income Tax Act, 1961, are liable to be quashed on the grounds that they were not issued in accordance with the faceless assessment scheme as mandated by Section 151A and the relevant notifications. Assessee's Contention: The petitioner argued that the issue involved in the present writ petition is covered by the judgments of a Co-ordinate Bench of this Court 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), which were decided on July 19, 2024, and July 29, 2024, respectively. These judgments were rendered after the filing of the present writ petition. Revenue's Contention: The learned counsel for the respondent did not dispute the applicability of the aforementioned judgments.

Which sections of the Income-tax Act were involved?

Section 148,Section 148A,Section 151A

AI-generated summary — verify with the full judgment below

1 CM-12327-CWP-2025 in/and CWP-11526-2024

115

IN THE HIGH COURT OF PUNJAB AND HARYANA

AT CHANDIGARH

CM-12327-CWP-2025 in/and

CWP-11526-2024

Date of Decision: September 04, 2025

KARAN VERMA

..... Petitioner

Versus

DCIT/ACIT, CIRCLE 1, AMRITSAR

..... Respondents

CORAM:- HON'BLE MRS. JUSTICE LISA GILL

HON'BLE MRS. JUSTICE MEENAKSHI I. MEHTA

Present: Mr. Abhinav Narang, Advocate for the applicant-petitioner.

Ms. Urvashi Dhugga, Advocate for the respondent.

**** LISA GILL, J. 1.

Prayer in the application is for disposal of present petition in terms of judgment of this Court in 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. 2.

Notice of the application. 3.

Ms. Urvashi Dhugga, Advocate accepts notice on behalf of respondent. RITU SHARMA 2025.09.09 13:54 I attest to the accuracy and integrity of this document

2 CM-12327-CWP-2025 in/and CWP-11526-2024

At request and with consent of learned counsel for parties, hearing of petition is preponed from 11.11.2025 for today itself. 5.

Prayer in this writ petition is for quashing notice dated 15.04.2024, under Section 148 of Income Tax Act, 1961 (for short the Act) for Assessment year 2017-18; order dated 15.04.2024 under Section 148A(d) of the Act and notice dated 23.03.2024 under Section 148A(b) of the Act. 6.

Learned counsel for petitioner at the outset submits 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, 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. He further submits that these judgments have been rendered after filing of this writ petition. 7.

Learned counsel appearing for respondent does not dispute the same. 8.

We have heard learned counsel for the parties and have perused the file with their able assistance. 9.

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 RITU SHARMA 2025.09.09 13:54 I attest to the accuracy and integrity of this document

3 CM-12327-CWP-2025 in/and CWP-11526-2024

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 read with notification dated 29.03.2022 issued thereunder is quite lucid. There is no ambiguity in the language of statutory provisions, thus, office memorandum or any other instruction issued by Board or any other authority cannot be relied upon."

10.

In view of the above, application is allowed and 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.

(LISA GILL)

JUDGE

(MEENAKSHI I. MEHTA) September 04, 2025

JUDGE Rts

Whether speaking/reasoned : Yes/No Whether reportable : Yes/No

RITU SHARMA 2025.09.09 13:54 I attest to the accuracy and integrity of this document

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