FLINT POWER TOOLS PRIVATE LIMITED vs. ASSISTANT COMMISSIONER OF INCOME TAX AND OTHERS

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CWP/11685/2025HC Punjab & HaryanaPHHC01064616202506 May 2025Bench: MRS. JUSTICE LISA GILL,MRS. JUSTICE SUDEEPTI SHARMA2 pages
AI SummaryAllowed

What did the High Court hold?

The High Court allowed the writ petition. The Court found that the issue raised by the petitioner was covered by previous judgments of a co-ordinate bench in Jatinder Singh Bhangu's case and Jasjit Singh's case. In those cases, writ petitions were allowed on similar grounds concerning the jurisdiction for issuing Section 148 notices. The Court followed these precedents. The operative direction was to dispose of the present writ petition in terms of the aforementioned judgments. These judgments typically granted liberty to the revenue to follow the prescribed procedure under the Act if they were so advised. The Court did not expressly leave any issue undecided.

What were the facts?

The petitioner, Flint Power Tools Pvt. Ltd., challenged a notice dated March 22, 2025, issued under Section 148 of the Income Tax Act, 1961, for Assessment Year 2015-2016. The petitioner also challenged all consequential actions arising from this notice. The core of the challenge was that the issuing authority lacked jurisdiction to issue the notice. This was based on a CBDT circular/notification dated March 29, 2022, which allegedly vested exclusive power to issue Section 148 notices with the National Faceless Assessment Centre (NFAC). The respondents are the Assistant Commissioner of Income Tax, Central Circle I, Faridabad, and others.

What were the issues?

1. Whether the notice dated March 22, 2025, issued under Section 148 of the Income Tax Act, 1961, for AY 2015-2016 is invalid due to lack of jurisdiction of the issuing authority, in light of the CBDT circular/notification dated March 29, 2022, which purportedly grants exclusive power to the NFAC to issue such notices? (Question of law) The assessee (petitioner) contended that the notice was issued without jurisdiction, citing the CBDT circular/notification dated March 29, 2022, which designates the NFAC as having exclusive power to issue notices under Section 148. The assessee relied on judgments from a co-ordinate bench of the High Court in Jatinder Singh Bhangu vs. Union of India and Jasjit Singh vs. Union of India. The revenue (respondent) did not dispute the applicability of the cited judgments.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

CWP-11685-2025 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 157

CWP-11685-2025 (O&M) Date of Decision:-06.05.2025 Flint Power Tools Pvt. Ltd. ....Petitioner Vs. Asstt. Commissioner of Income, Central Circle I, Faridabad & ors. ...Respondents CORAM: HON'BLE MRS. JUSTICE LISA GILL HON'BLE MRS. JUSTICE SUDEEPTI SHARMA Present: Mr. Nikhil Goyal and Mr. Rana Gurtej Singh, Advocates, for the petitioner. Mr.Varun Issar, Sr. Standing counsel with Ms. Pridhi Sandhu, Jr. Standing counsel for the respondent. *** SUDEEPTI SHARMA, J. 1. Challenge in the present petition is to notice dated 22.03.2025 issued under Section 148 of the Income Tax Act, 1961 (for short ‘Act 1961”) and all consequential actions, for AY 2015-2016. 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 22.03.2025 issued Gaurav Arora 2025.05.12 14:16 I attest to the accuracy and integrity of this document

CWP-11685-2025 2 under Section 148 of the Act, 1961 and all consequential actions, for AY 2015- 2016 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 06.05.2025

Gaurav Arora Whether speaking/reasoned : Yes/No Whether reportable : Yes/No Gaurav Arora 2025.05.12 14:16 I attest to the accuracy and integrity of this document

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