ASHA SALUJA vs. INCOME TAX OFFICER WARD 1(1) FARIDABAD AND OTHERS

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CWP/13925/2025HC Punjab & HaryanaPHHC01077626202515 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 passed by a Co-ordinate Bench in Jatinder Singh Bhangu's case (decided on July 19, 2024) and Jasjit Singh's case (decided on July 29, 2024). These prior judgments had allowed writ petitions on similar issues, holding that the issuing authority lacked jurisdiction. The Court granted liberty to the revenue to follow the procedure laid down under the Act, 1961, and proceed accordingly, if so advised. The operative direction was to dispose of the writ petition in line with the cited precedents, effectively quashing the impugned notice and granting liberty to the revenue to re-initiate proceedings if they chose to do so following the correct procedure.

What were the facts?

The petitioner, Asha Saluja, 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 challenge was based on the contention that the issuing authority lacked jurisdiction due to a CBDT circular/notification dated March 29, 2022. This notification purportedly grants exclusive power to the National Faceless Assessment Centre (NFAC) to issue such notices. The respondents, Income Tax Officer Ward 1 (1), Faridabad, and others, did not dispute the petitioner's submissions.

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 on the grounds that the issuing authority lacked jurisdiction in view of the CBDT circular/notification dated March 29, 2022, which vests exclusive power to issue such notices in the NFAC? (Question of law and fact, concerning Section 148 of the Act). Assessee's Contention: The petitioner argued that the notice was issued without jurisdiction, relying on the CBDT circular/notification 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 others (CWP No. 15745-2024) and Jasjit Singh vs. Union of India and others (CWP No. 21509-2023) as precedents. Revenue's Contention: The learned counsel 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-13925-2025 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 143 CWP-13925-2025 (O&M) Date of Decision:-15.05.2025 Asha Saluja ....Petitioner Vs. Income Tax Officer Ward 1 (1), Faridabad & 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 2025.05.21 10:36 I attest to the accuracy and integrity of this document

CWP-13925-2025 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 15.05.2025

Gaurav Arora Whether speaking/reasoned : Yes/No Whether reportable : Yes/No Gaurav Arora 2025.05.21 10:36 I attest to the accuracy and integrity of this document

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