ISHAAN MITTAL vs. INCOME TAX OFFICER AND OTHERS

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CWP/12881/2025HC Punjab & HaryanaPHHC01066861202507 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 previously passed by a Co-ordinate Bench in Jatinder Singh Bhangu vs. Union of India (CWP No. 15745-2024 and connected matter, decided on 19.07.2024) and Jasjit Singh vs. Union of India (CWP No. 21509-2023 and other connected matters, decided on 29.07.2024). In those cited cases, the writ petitions were allowed on similar issues, with liberty granted to the revenue to follow the prescribed procedure under the Act, 1961, and proceed accordingly if advised. The reasoning was based on the petitioner's contention regarding the exclusive jurisdiction of the NFAC to issue Section 148 notices as per the CBDT circular dated 29.03.2022, which the revenue did not contest. The operative direction was to dispose of the petition in line with the precedent, effectively quashing the impugned notices and orders without prejudice to the revenue's right to re-initiate proceedings correctly.

What were the facts?

The petitioner, Ishaan Mittal, challenged a notice dated 31.03.2024 under Section 148 of the Income Tax Act, 1961, an assessment order dated 28.03.2025 under Section 147, a demand notice dated 28.03.2025 under Section 156, and a penalty show cause notice dated 28.03.2025 under Section 271 AAC(1), all pertaining to Assessment Year 2019-2020. The challenge was based on the assertion 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 respondents, including the Income Tax Officer, Ward 1, Phagwara, did not dispute the petitioner's contention.

What were the issues?

1. Whether the notice dated 31.03.2024 issued under Section 148 of the Income Tax Act, 1961, the assessment order dated 28.03.2025 under Section 147, the demand notice dated 28.03.2025 under Section 156, and the penalty show cause notice dated 28.03.2025 under Section 271 AAC(1) are invalid for Assessment Year 2019-2020 on the grounds of lack of jurisdiction by the issuing authority. Assessee's Contention: The petitioner argued that the issuing authority lacked jurisdiction to issue the impugned notices and orders. This was based on a CBDT circular dated 29.03.2022, which allegedly stipulated that the National Faceless Assessment Centre (NFAC) has exclusive power to issue notices under Section 148 of the Act, 1961. The petitioner 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. Revenue's Contention: The learned counsel for the Union of India did not dispute the petitioner's contentions.

Which sections of the Income-tax Act were involved?

Section 148,Section 147,Section 156,Section 271 AAC (1)

AI-generated summary — verify with the full judgment below

CWP-12881-2025 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 180 CWP-12881-2025 (O&M) Date of Decision:-07.05.2025 Ishaan Mittal ....Petitioner Vs. Income Tax Officer, Ward 1, Phagwara & 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. Ranvijay Singh, Sr. Standing counsel for the respondents. *** SUDEEPTI SHARMA, J. 1. Challenge in the present petition is to notice dated 31.03.2024 issued under Section 148 of the Income Tax Act, 1961 (for short ‘Act 1961”); assessment order dated 28.03.2025 issued under Section 147 of the Act, 1961; demand notice dated 28.03.2025 issued under Section 156 of the Act, 1961 and penalty show cause notice dated 28.03.2025 under Section 271 AAC (1) of the Act, 1961 and all consequential actions, for AY 2019- 2020. 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 2025.05.13 12:04 I attest to the accuracy and integrity of this document

CWP-12881-2025 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 31.03.2024 issued under Section 148 of the Act, 1961; assessment order dated 28.03.2025 issued under Section 147 of the Act, 1961; demand notice dated 28.03.2025 issued under Section 156 of the Act, 1961 and penalty show cause notice dated 28.03.2025 under Section 271 AAC (1) of the Act, 1961 and all consequential actions, for AY 2019-2020 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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