BALVINDER SINGH vs. INCOME TAX OFFICER AND OTHERS

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CWP/11534/2025HC Punjab & HaryanaPHHC01064807202521 May 2025Bench: MRS. JUSTICE LISA GILL,MRS. JUSTICE SUDEEPTI SHARMA2 pages
AI SummaryRemanded

What did the High Court hold?

The High Court, while noting that a Co-ordinate Bench had previously allowed writ petitions on the same issue in Jatinder Singh Bhangu vs. Union of India and others and Jasjit Singh vs. Union of India and others, disposed of the present writ petition in terms of those earlier judgments. The principle established in those cases, and applied here, is that the issuing authority lacked jurisdiction to issue notices under Section 148 of the Act, 1961, contrary to the CBDT circular dated 29.03.2022 which grants exclusive power to the NFAC. Consequently, the impugned notices and orders were set aside. The revenue was granted liberty to follow the procedure laid down under the Act, 1961, and proceed accordingly if so advised. No specific amount was in dispute, and the penalty show cause notice was also quashed as consequential.

What were the facts?

The petitioner, Balvinder Singh, challenged a notice dated 28.03.2024 under Section 148 of the Income Tax Act, 1961, an assessment order dated 29.03.2025 under Section 147 read with Section 144-B, a demand notice dated 29.03.2025 under Section 156, and a penalty show cause notice dated 30.03.2024 under Section 271AAC(1), all pertaining to Assessment Year 2020-2021. The challenge was based on the contention that the issuing authority lacked jurisdiction due to a CBDT circular dated 29.03.2022, which purportedly vested exclusive power to issue Section 148 notices with the National Faceless Assessment Centre (NFAC). The revenue did not dispute the petitioner's submissions.

What were the issues?

1. Whether the notice dated 28.03.2024 issued under Section 148 of the Income Tax Act, 1961, the assessment order dated 29.03.2025 under Section 147 read with Section 144-B, the demand notice dated 29.03.2025 under Section 156, and the penalty show cause notice dated 30.03.2024 under Section 271AAC(1) are invalid for Assessment Year 2020-2021 due to lack of jurisdiction of the issuing authority. Assessee's contention: The issuing authority lacked jurisdiction to issue the impugned notices and orders in view of the CBDT circular/notification dated 29.03.2022, which specifically states that the NFAC has exclusive power to issue notices under Section 148 of the Act, 1961. Revenue's contention: The revenue did not dispute the petitioner's submissions.

Which sections of the Income-tax Act were involved?

Section 148,Section 147,Section 144-B,Section 156,Section 271AAC(1)

AI-generated summary — verify with the full judgment below

CWP-11534-2025 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 167 CWP-11534-2025(O&M) Date of Decision:-21.05.2025 Balvinder Singh ....Petitioner Vs. Income Tax Officer & ors. ...Respondents CORAM: HON'BLE MRS. JUSTICE LISA GILL HON'BLE MRS. JUSTICE SUDEEPTI SHARMA Present: Mr. B.M. Monga, Mr. Rohit Kaura, Mr. Rajiv Sharma, Advocates, for the petitioner. Mrs. Urvashi Dhugga, Sr. Standing counsel for the respondents. *** SUDEEPTI SHARMA, J. 1. Challenge in the present petition is to notice dated 28.03.2024 issued under Section 148 of the Income Tax Act, 1961 (for short ‘Act 1961”); assessment order dated 29.03.2025 issued under Section 147 read with Section 144-B of the Act, 1961; demand notice dated 29.03.2025 issued under Section 156 of the Act, 1961 and penalty show cause notice dated 30.03.2024 issued under Section 271AAC (1) of the Act, 1961 and all consequential actions, for AY 2020-2021. 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 Gaurav Arora 2025.05.26 14:38 I attest to the accuracy and integrity of this document

CWP-11534-2025 2 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 28.03.2024 issued under Section 148 of the Act, 1961; assessment order dated 29.03.2025 issued under Section 147 read with Section 144-B of the Act, 1961; demand notice dated 29.03.2025 issued under Section 156 of the Act, 1961 and penalty show cause notice dated 30.03.2024 issued under Section 271AAC (1) of the Act, 1961 and all consequential actions, for AY 2020-2021, 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 21.05.2025

Gaurav Arora Whether speaking/reasoned : Yes/No Whether reportable : Yes/No Gaurav Arora 2025.05.26 14:38 I attest to the accuracy and integrity of this document

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