VISHAL JAIN vs. INCOME TAX OFFICER AND OTHERS

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CWP/13348/2025HC Punjab & HaryanaPHHC01073918202512 May 2025Bench: MRS. JUSTICE LISA GILL,MRS. JUSTICE SUDEEPTI SHARMA2 pages
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What did the High Court hold?

The High Court allowed the writ petition, disposing of it in terms of the judgments in Jatinder Singh Bhangu's case (decided on 19.07.2024) and Jasjit Singh's case (decided on 29.07.2024). These prior judgments had allowed writ petitions on similar issues, granting liberty to the revenue to follow the prescribed procedure under the Act and proceed accordingly if advised. The reasoning was based on the petitioner's contention regarding the lack of jurisdiction of the issuing authority due to the CBDT circular dated 29.03.2022, which was not disputed by the revenue. The operative direction was to dispose of the petition in line with the cited precedents, implying that the notice and consequential orders were set aside, with liberty to the revenue to re-initiate proceedings correctly.

What were the facts?

The petitioner, Vishal Jain, challenged a notice dated 31.03.2023 under Section 148 of the Income Tax Act, 1961, an assessment order dated 13.03.2024 under Section 147, and a demand notice dated 13.03.2024 under Section 156, 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 revenue did not dispute this contention.

What were the issues?

1. Whether the notice dated 31.03.2023 issued under Section 148 of the Income Tax Act, 1961, and consequential orders are invalid due to lack of jurisdiction, in light of the CBDT circular dated 29.03.2022, which allegedly grants exclusive power to the NFAC to issue such notices? Assessee's contention: The petitioner argued that the issuing authority lacked jurisdiction to issue the notice under Section 148, citing the CBDT circular dated 29.03.2022, which purportedly states that the NFAC has exclusive power in this regard. The petitioner relied on judgments from a Co-ordinate Bench 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 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-13348-2025 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 161 CWP-13348-2025 (O&M) Date of Decision:-12.05.2025 Vishal Jain ....Petitioner Vs. Income Tax Officer Ward 2 (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 Issar, 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 31.03.2023 issued under Section 148 of the Income Tax Act, 1961 (for short ‘Act 1961”); assessment order dated 13.03.2024 issued under Section 147 of the Act, 1961; demand notice dated 13.03.2024 issued under Section 156 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 disputed the same. Gaurav Arora 2025.05.16 16:30 I attest to the accuracy and integrity of this document

CWP-13348-2025 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 31.03.2023 issued under Section 148 of the Act, 1961; assessment order dated 13.03.2024 issued under Section 147 of the Act, 1961; demand notice dated 13.03.2024 issued under Section 156 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 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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