NALIN GUPTA vs. INCOME TAX OFFICER AND OTHERS

PDF · subscribers
CWP/12862/2025HC Punjab & HaryanaPHHC01071590202507 May 2025Bench: MRS. JUSTICE LISA GILL,MRS. JUSTICE SUDEEPTI SHARMA2 pages
AI SummaryRemanded

What did the High Court hold?

The High Court allowed the writ petition, disposing of it 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, granting liberty to the revenue to follow the prescribed procedure under the Act, 1961, and proceed accordingly if advised. The reasoning was based on the precedent set by the Co-ordinate Bench concerning the jurisdiction of the issuing authority in light of the CBDT circular. The operative direction was to dispose of the petition in line with the cited judgments, implying that the impugned notices and orders were set aside, with liberty to the revenue to re-initiate proceedings correctly. No issue was expressly left undecided.

What were the facts?

The petitioner, Nalin Gupta, challenged a notice dated 27.03.2024 under Section 148 of the Income Tax Act, 1961, an assessment order dated 22.02.2025 under Section 147 read with Section 144-B, a demand notice dated 22.02.2025, and a penalty show cause notice dated 22.02.2025 under Section 270, all pertaining to Assessment Year 2020-2021. The challenge was based on the assertion that the issuing authority lacked jurisdiction due to a CBDT circular dated 29.03.2022, which allegedly vested exclusive power to issue Section 148 notices with the National Faceless Assessment Centre (NFAC). The respondents, Income Tax Officer and others, did not dispute the petitioner's contention.

What were the issues?

1. Whether the notice dated 27.03.2024 issued under Section 148 of the Income Tax Act, 1961, the assessment order dated 22.02.2025 under Section 147 read with Section 144-B, the demand notice dated 22.02.2025, and the penalty show cause notice dated 22.02.2025 under Section 270, for AY 2020-2021, are invalid due to lack of jurisdiction of the issuing authority, in light of CBDT circular dated 29.03.2022. Assessee's contention: The issuing authority had no jurisdiction to issue the impugned notices and orders as per the CBDT circular dated 29.03.2022, which grants exclusive power to the NFAC to issue notices under Section 148 of the Act, 1961. The petitioner relied on the judgments 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 revenue did not dispute the petitioner's contention.

Which sections of the Income-tax Act were involved?

Section 148,Section 147,Section 144-B,Section 270

AI-generated summary — verify with the full judgment below

CWP-12862-2025 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 176 CWP-12862-2025 (O&M) Date of Decision:-07.05.2025 Nalin Gupta ....Petitioner Vs. Income Tax Officer, Ward 5, Yamuna Nagar & ors. ...Respondents CORAM: HON'BLE MRS. JUSTICE LISA GILL HON'BLE MRS. JUSTICE SUDEEPTI SHARMA Present: Mr. B.M. Monga & Mr. Rohit Kaura, Advocates for the petitioner. Mr. Saurabh Kapoor, Sr. Standing counsel Ms. Muskan Gupta, Advocate for the respondents. *** SUDEEPTI SHARMA, J. 1. Challenge in the present petition is to notice dated 27.03.2024 issued under Section 148 of the Income Tax Act, 1961 (for short ‘Act 1961”); assessment order dated 22.02.2025 issued under Section 147 read with Section 144-B of the Act, 1961; demand notice dated 22.02.2025 and penalty show cause notice dated 22.02.2025 under Section 270 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 disputed the same. Gaurav Arora 2025.05.13 12:04 I attest to the accuracy and integrity of this document

CWP-12862-2025 2 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 27.03.2024 issued under Section 148 of the Act, 1961; assessment order dated 22.02.2025 issued under Section 147 read with Section 144-B of the Act, 1961; demand notice dated 22.02.2025 and penalty show cause notice dated 22.02.2025 under Section 270 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 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

More judgments on Section 148

All 35,022 judgments and leading authorities on Section 148 →

Recent GST High Court judgments

Search GST case law →