MANOJ GUPTA vs. INCOME TAX OFFICER AND OTHERS

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CWP/13321/2025HC Punjab & HaryanaPHHC01073445202512 May 2025Bench: MRS. JUSTICE LISA GILL,MRS. JUSTICE SUDEEPTI SHARMA2 pages
AI SummaryRemanded

What did the High Court hold?

The High Court held that the issue raised in the present writ petition is covered by the judgments of a Co-ordinate Bench in Jatinder Singh Bhangu vs. Union of India and Jasjit Singh vs. Union of India. In those cases, the writ petitions were allowed on similar grounds, granting liberty to the revenue to follow the prescribed procedure under the Act, 1961, and proceed accordingly if advised. Consequently, the present writ petition was disposed of in terms of these prior judgments. The operative direction was to dispose of the petition in terms of the cited precedents, implying the quashing of the impugned notices and orders, with liberty to the revenue to re-initiate proceedings if they chose to follow the correct procedure. No specific issue was left undecided.

What were the facts?

The petitioner, Manoj Gupta, challenged a notice dated 21.03.2024 under Section 148 of the Income Tax Act, 1961, an assessment order dated 30.03.2025 under Section 147, and a demand notice dated 30.03.2025 under Section 156, all pertaining to Assessment Year (AY) 2020-2021. The core of the challenge was that the issuing authority lacked jurisdiction due to a CBDT circular dated 29.03.2022, which purportedly granted exclusive power to the National Faceless Assessment Centre (NFAC) to issue such notices. The revenue did not dispute the petitioner's contention regarding the applicability of previous judgments.

What were the issues?

1. Whether the notice dated 21.03.2024 issued under Section 148 of the Income Tax Act, 1961, the assessment order dated 30.03.2025 under Section 147, and the demand notice dated 30.03.2025 under Section 156 for AY 2020-2021 are invalid due to lack of jurisdiction, in light of the CBDT circular dated 29.03.2022 which allegedly vests exclusive power to issue Section 148 notices with the NFAC? (Question of law and mixed fact and law, turning on Section 148 and CBDT Circular dated 29.03.2022). Assessee's contention: The issuing authority lacked jurisdiction to issue the impugned notices and orders as per the CBDT circular dated 29.03.2022, which grants exclusive power to the NFAC for issuing Section 148 notices. The petitioner relied on the judgments in Jatinder Singh Bhangu vs. Union of India and Jasjit Singh vs. Union of India. 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 156

AI-generated summary — verify with the full judgment below

CWP-13321-2025 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 157 CWP-13321-2025 (O&M) Date of Decision:-12.05.2025 Manoj Gupta ....Petitioner Vs. Income Tax Officer, Ward 1 (3), Faridabad & ors. ...Respondents CORAM: HON'BLE MRS. JUSTICE LISA GILL HON'BLE MRS. JUSTICE SUDEEPTI SHARMA Present: Mr. Vishav Bharti Gupta, Advocate Ms Mamta Gupta, Advocate, for the petitioner. Mr. Varun Singh, Sr. Standing counsel with Ms. Pridhi Sandhu, Jr. Standing counsel for the respondents. *** SUDEEPTI SHARMA, J. 1. Challenge in the present petition is to notice dated 21.03.2024 issued under Section 148 of the Income Tax Act, 1961 (for short ‘Act 1961”); assessment order dated 30.03.2025 issued under Section 147 of the Act, 1961; demand notice dated 30.03.2025 issued under Section 156 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 2025.05.16 16:30 I attest to the accuracy and integrity of this document

CWP-13321-2025 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 21.03.2024 issued under Section 148 of the Act, 1961; assessment order dated 30.03.2025 issued under Section 147 of the Act, 1961; demand notice dated 30.03.2025 issued under Section 156 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 12.05.2025

Gaurav Arora Whether speaking/reasoned : Yes/No Whether reportable : Yes/No Gaurav Arora 2025.05.16 16:30 I attest to the accuracy and integrity of this document

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