NECTAR LIFESCIENCES LIMITED vs. DEPUTY COMMISSIONER OF INCOME TAX

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CWP/12079/2025HC Punjab & HaryanaPHHC01067634202501 May 2025Bench: MR. JUSTICE DEEPAK SIBAL,MS. JUSTICE LAPITA BANERJI2 pages
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What did the High Court hold?

The High Court held that the impugned notice dated 31.08.2024, issued by the Jurisdictional Assessing Officer to the petitioner for AY 2019-20, was liable to be quashed. The Court's reasoning was based on the fact that the respondent did not dispute that the case was covered by the law laid down in two previous judgments of coordinate benches of the same High Court, namely Jatinder Singh Bhangu and Jasjit Singh. These judgments presumably dealt with the invalidity of notices issued by Jurisdictional Assessing Officers in contravention of faceless assessment procedures. The ratio decidendi is that notices issued in violation of mandatory procedural notifications, such as those mandating faceless assessment, are invalid. The Court quashed the notice with liberty to the respondents to proceed against the petitioner in accordance with law.

What were the facts?

The petitioner, Nectar Life Sciences Limited, challenged a notice dated 31.08.2024 issued under Section 148 of the Income Tax Act, 1961, for Assessment Year 2019-20. The petitioner's primary contention was that the notice was issued by the Jurisdictional Assessing Officer, which was impermissible according to a notification dated 29.03.2022 mandating faceless assessment. The respondent, Deputy Commissioner of Income Tax, did not dispute that the case was covered by previous judgments of the High Court.

What were the issues?

1. Whether the notice dated 31.08.2024, issued under Section 148 of the Income Tax Act, 1961, for AY 2019-20, is liable to be quashed on the ground that it was issued by the Jurisdictional Assessing Officer, contrary to the faceless assessment procedure mandated by the notification dated 29.03.2022? (Question of law) Assessee's contention: The petitioner argued that the impugned notice was invalid as it was issued by the Jurisdictional Assessing Officer, whereas the notification dated 29.03.2022 stipulated that such notices must be issued through faceless assessment. The petitioner relied on two High Court judgments: CWP-15745-2024 (Jatinder Singh Bhangu vs. Union of India and others) and CWP-21509-2023 (Jasjit Singh vs. Union of India and others). Revenue's contention: The respondent did not dispute the petitioner's submissions and conceded that the case was covered by the aforesaid judgments.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 135 CWP-12079-2025

Date of decision: 01.05.2025 NECTAR LIFE SCIENCES LIMITED ...Petitioner VERSUS DEPUTY COMMISSIONER OF INCOME TAX ...Respondent CORAM : HON'BLE MR. JUSTICE DEEPAK SIBAL HON'BLE MR. JUSTICE LAPITA BANERJI Present: Mr. Abhinav Narang, Advocate for the petitioner. Mr. Yogesh Putney, Senior Standing Counsel and Mr. Vaibhav Gupta, Standing Counsel for the respondent. **** DEEPAK SIBAL

, J.(ORAL) 1. Challenge made through the instant petition is to the notice dated 31.08.2024 (Annexure P-1) issued to the petitioner by the respondents under Section 148 of the Income Tax Act, 1961 for AY 2019-20. The primary ground of challenge raised by the petitioner is that the impugned notice has been issued by the Jurisdictional Assessing Officer which could have not been done because in terms of the notification dated 29.03.2022 (Annexure P-2), issued by the Ministry of Finance, Government of India, the impugned notice could have been issued only by way of faceless assessment. 2. In support of his afore submission, learned counsel for the petitioner places reliance on the following two judgments of this Court:- NISHA 2025.05.03 14:12 I attest to the accuracy and integrity of this document

CWP-12079-2025 -2- (i) CWP-15745-2024, titled Jatinder Singh Bhangu vs. Union of India and others, decided on 19.07.2024; and (ii) CWP-21509-2023, titled Jasjit Singh vs. Union of India and others, decided on 29.07.2024.

3.

Learned counsel for the respondents does not dispute the fact that the case of the petitioner is covered in his favour by the law laid down through the aforesaid two judgments rendered by two different co-ordinate Benches of this Court in Jatinder Singh Bhangu and Jasjit Singh (supra). 4. In the light of the above, in terms of the law laid down in Jatinder Singh Bhangu’s and Jasjit Singh’s cases (supra), the impugned notice dated 31.08.2024 (Annexure P-1), issued by the Jurisdictional Assessing Officer, is hereby quashed with liberty to the respondents to proceed against the petitioner in accordance with law. 5. The petition is allowed in the above terms. (DEEPAK SIBAL) JUDGE (LAPITA BANERJI) JUDGE 01.05.2025

Nisha Yadav

Whether reasoned/speaking? Yes/No Whether reportable? Yes/No NISHA 2025.05.03 14:12 I attest to the accuracy and integrity of this document

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