GURDEEP SINGH vs. INCOME TAX OFFICER AND OTHERS

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CWP/13499/2025HC Punjab & HaryanaPHHC01075307202513 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 its previous judgments in Jatinder Singh Bhangu vs. Union of India and others (CWP No. 15745-2024, decided on 19.07.2024) and Jasjit Singh vs. Union of India and others (CWP No. 21509-2023, decided on 29.07.2024). In those 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 established principle that notices issued by authorities without proper jurisdiction, as defined by subsequent circulars or notifications, are invalid. The operative direction was to dispose of the petition in line with the precedents, implying the quashing of the impugned notices and orders, subject to the revenue's right to re-initiate proceedings correctly.

What were the facts?

The petitioner, Gurdeep Singh, challenged a notice dated 26.02.2024 under Section 148 of the Income Tax Act, 1961, an assessment order dated 29.03.2025 under Section 147, a demand notice dated 29.03.2025, and all consequential actions for Assessment Year 2017-2018. The petitioner argued that the issuing authority lacked jurisdiction due to a CBDT circular dated 29.03.2022, which vests exclusive power to issue Section 148 notices in the National Faceless Assessment Centre (NFAC). The revenue did not dispute this contention. The High Court considered previous judgments on similar issues.

What were the issues?

1. Whether the notice issued under Section 148 of the Income Tax Act, 1961, and the subsequent assessment order and demand notice for AY 2017-2018 are invalid due to lack of jurisdiction by the issuing authority, in light of the CBDT circular dated 29.03.2022? (Question of law and fact, concerning Section 148 and Section 147 of the Act, 1961). Assessee's contention: The issuing authority lacked jurisdiction to issue the notice under Section 148 of the Act, 1961, as the exclusive power rests with the NFAC as per the CBDT circular dated 29.03.2022. 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

AI-generated summary — verify with the full judgment below

CWP-13499-2025 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 154 CWP-13499-2025 (O&M) Date of Decision:-13.05.2025 Gurdeep Singh ....Petitioner Vs. Income Tax Officer, Ward 1, Faridkot & 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. Mrs. Urvashi Dhugga, Sr. Standing counsel for the respondents. *** SUDEEPTI SHARMA, J. 1. Challenge in the present petition is to notice dated 26.02.2024 issued under Section 148 of the Income Tax Act, 1961 (for short ‘Act 1961”) ; assessment order dated 29.03.2025 issued under Section 147 of the Act, 1961; demand notice dated 29.03.2025 and all consequential actions, for AY 2017-2018. 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. 4. We have heard learned counsel for the parties and perused the whole records of the case. Gaurav Arora 2025.05.16 16:39 I attest to the accuracy and integrity of this document

CWP-13499-2025 2 5. The petitioner has challenged the notice dated 26.02.2024 issued under Section 148 of the Act, 1961; assessment order dated 29.03.2025 issued under Section 147 of the Act, 1961; demand notice dated 29.03.2025 and all consequential actions, for AY 2017-2018 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 13.05.2025

Gaurav Arora Whether speaking/reasoned : Yes/No Whether reportable : Yes/No Gaurav Arora 2025.05.16 16:39 I attest to the accuracy and integrity of this document

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