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

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CWP/11788/2025HC Punjab & HaryanaPHHC01065273202507 May 2025Bench: MRS. JUSTICE LISA GILL,MRS. JUSTICE SUDEEPTI SHARMA2 pages
AI SummaryRemanded

What did the High Court hold?

The High Court of Punjab and Haryana at Chandigarh disposed of the writ petition in terms of the judgments passed by a Co-ordinate Bench in Jatinder Singh Bhangu’s case (decided on 19.07.2024) and Jasjit Singh’s case (decided on 29.07.2024). These earlier judgments had allowed writ petitions on the same issue, which was the lack of jurisdiction of the issuing authority to issue a notice under Section 148 of the Act, 1961, in view of the CBDT circular/notification dated 29.03.2022. The ratio decidendi is that the NFAC has exclusive power to issue such notices. Consequently, the notice dated 22.03.2025 issued under Section 148 of the Act, 1961, and all consequential actions were set aside. The revenue was granted liberty to follow the procedure as laid down under the Act, 1961, and proceed accordingly, if so advised. No issue was expressly left undecided.

What were the facts?

The petitioner, LSL Tools Pvt. Ltd., challenged a notice dated 22.03.2025 issued under Section 148 of the Income Tax Act, 1961, for Assessment Year 2016-2017, along with all consequential actions. The challenge was based on the assertion that the issuing authority lacked jurisdiction due to a CBDT circular/notification dated 29.03.2022, which purportedly vested exclusive power to issue such notices in the National Faceless Assessment Centre (NFAC). The respondents are the Assistant Commissioner of Income Tax and others. The procedural history involves the filing of this writ petition before the High Court of Punjab and Haryana at Chandigarh.

What were the issues?

1. Whether the notice dated 22.03.2025, issued under Section 148 of the Income Tax Act, 1961, for AY 2016-2017 is without jurisdiction, in light of the CBDT circular/notification dated 29.03.2022, which allegedly grants exclusive power to the NFAC to issue such notices? (Question of law and mixed fact/law, concerning Section 148 of the Act, 1961 and CBDT notification dated 29.03.2022). Assessee's contention: The issuing authority lacked jurisdiction to issue the notice under Section 148 of the Act, 1961, as per the CBDT circular/notification dated 29.03.2022, which specifies that the NFAC has exclusive power in this regard. The petitioner relied on the judgments of a Co-ordinate Bench 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 contention: The learned counsel for the Union of India did not dispute the petitioner's contention.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

CWP-11788-2025 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 168

CWP-11788-2025 (O&M) Date of Decision:-07.05.2025 LSL 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 2016-2017. 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 2025.05.13 12:04 I attest to the accuracy and integrity of this document

CWP-11788-2025 2 under Section 148 of the Act, 1961 and all consequential actions, for AY 2016- 2017 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 07.05.2025

Gaurav Arora Whether speaking/reasoned : Yes/No Whether reportable : Yes/No Gaurav Arora 2025.05.13 12:04 I attest to the accuracy and integrity of this document

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