SUKANYA SHARMA vs. INCOME TAX OFFICER AND OTHERS

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CWP/13675/2025HC Punjab & HaryanaPHHC01075955202522 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 present writ petition is disposed of in terms of the judgments of a Co-ordinate Bench in Jatinder Singh Bhangu vs. Union of India (CWP No. 15745-2024, decided on July 19, 2024) and Jasjit Singh vs. Union of India (CWP No. 21509-2023, decided on July 29, 2024). These earlier judgments had allowed writ petitions on similar issues, 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 petitioner's argument, which was not disputed by the revenue, that the issuing authority lacked jurisdiction due to the CBDT circular of March 29, 2022, assigning exclusive power to the NFAC for issuing Section 148 notices. The operative direction is that the writ petition is disposed of in terms of the aforesaid judgments.

What were the facts?

The petitioner, Sukanya Sharma, challenged a notice dated March 31, 2025, issued under Section 148 of the Income Tax Act, 1961, for Assessment Year 2021-2022, and all consequential actions. The petitioner argued that the issuing authority lacked jurisdiction to issue the notice. This was based on a CBDT circular/notification dated March 29, 2022, which stipulated that the National Faceless Assessment Centre (NFAC) has exclusive power to issue notices under Section 148. The respondents, represented by the Income Tax Officer and others, did not dispute this contention.

What were the issues?

1. Whether the notice dated March 31, 2025, issued under Section 148 of the Income Tax Act, 1961, for AY 2021-2022 is invalid on the ground that the issuing authority lacked jurisdiction, in view of the CBDT circular dated March 29, 2022, which vests exclusive power to issue such notices with the NFAC? (Question of law) Assessee's contention: The petitioner argued that the notice was issued without jurisdiction, relying on the CBDT circular dated March 29, 2022, which mandates that the NFAC has exclusive authority to issue Section 148 notices. The petitioner cited the judgments in Jatinder Singh Bhangu vs. Union of India and Jasjit Singh vs. Union of India as precedents. Revenue's contention: The revenue, through its counsel, did not dispute the petitioner's contention regarding the jurisdiction and the applicability of the cited precedents.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

CWP-13675-2025 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 204 CWP-13675-2025 (O&M) Date of Decision:-22.05.2025 Sukanya Sharma ....Petitioner Vs. Income Tax Officer, Ward 1 (4), 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 31.03.2025 issued under Section 148 of the Income Tax Act, 1961 (for short ‘Act 1961”) and all consequential actions, for AY 2021-2022. 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. 5. The petitioner has challenged the notice dated 31.03.2025 issued Gaurav Arora 2025.05.27 12:52 I attest to the accuracy and integrity of this document

CWP-13675-2025 2 under Section 148 of the Act, 1961 and all consequential actions, for AY 2021-2022 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 22.05.2025

Gaurav Arora Whether speaking/reasoned : Yes/No Whether reportable : Yes/No Gaurav Arora 2025.05.27 12:52 I attest to the accuracy and integrity of this document

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