DHEERAJ MANCHANDA vs. ASSISTANT COMMISSIONER OF INCOME TAX CIRLCE 1(1), GURGAON AND OTHERS

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CWP/13691/2025HC Punjab & HaryanaPHHC01076205202527 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 passed by a Co-ordinate Bench in Jatinder Singh Bhangu vs. Union of India (CWP No. 15745-2024) and Jasjit Singh vs. Union of India (CWP No. 21509-2023). In those cases, the writ petitions were allowed on the same issue, granting liberty to the revenue to follow the laid-down procedure under the Act, 1961, and proceed accordingly if advised. The reasoning is based on the precedent established by the co-ordinate bench concerning the exclusive jurisdiction of the NFAC for issuing Section 148 notices as per the CBDT circular. The operative direction is to dispose of the present petition in line with these judgments, implying the quashing of the impugned notice and consequential actions, with liberty to the revenue to re-initiate proceedings correctly. No issue was expressly left undecided.

What were the facts?

The petitioner, Dheeraj Manchanda, challenged a notice dated March 29, 2025, issued under Section 148 of the Income Tax Act, 1961, and all consequential actions for Assessment Year 2021-2022. The petitioner's primary contention was 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 revenue did not dispute this position. The High Court of Punjab and Haryana at Chandigarh considered the matter.

What were the issues?

1. Whether the notice dated March 29, 2025, issued under Section 148 of the Income Tax Act, 1961, for AY 2021-2022 is invalid due to lack of jurisdiction by the issuing authority, in light of the CBDT circular dated March 29, 2022, which vests exclusive power to issue such notices with the NFAC? (Question of law) Assessee's Contentions: The petitioner argued that the notice was issued without jurisdiction, relying on the CBDT circular dated March 29, 2022, which designates the NFAC as the sole authority for issuing 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 covering this issue. Revenue's Contentions: The learned counsel appearing for the Union of India did not dispute the petitioner's contentions.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

CWP-13691-2025 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 166 CWP-13691-2025 (O&M) Date of Decision:-27.05.2025 Dheeraj Manchanda ....Petitioner Vs. Asstt. Commissioner of Income Tax , Circle 1 (1), Gurgaon & ors. ...Respondents CORAM: HON'BLE MRS. JUSTICE LISA GILL HON'BLE MRS. JUSTICE SUDEEPTI SHARMA Present: Mr. Kartik Bansal, 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 29.03.2025 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 29.03.2025 issued Gaurav Arora 2025.05.29 18:35 I attest to the accuracy and integrity of this document

CWP-13691-2025 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 27.05.2025

Gaurav Arora Whether speaking/reasoned : Yes/No Whether reportable : Yes/No Gaurav Arora 2025.05.29 18:35 I attest to the accuracy and integrity of this document

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