PIYUSH vs. INCOME TAX OFFICER AND ORS

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CWP/1427/2025HC Punjab & HaryanaPHHC01007832202520 January 2025Bench: MR. JUSTICE ARUN PALLI,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 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 similar writ petitions on the same issue, which was the lack of jurisdiction of the issuing authority to issue a Section 148 notice in view of the CBDT circular dated 29.03.2022. The principle established is that if a notice under Section 148 is issued by an authority other than the designated NFAC, contrary to the CBDT circular, it is without jurisdiction. The Court granted liberty to the revenue to follow the procedure laid down under the Act, 1961, and proceed accordingly, if so advised. All pending applications were also disposed of.

What were the facts?

The petitioner, Piyush, challenged a notice dated 26.02.2024 issued under Section 148 of the Income Tax Act, 1961, and consequential proceedings for Assessment Year 2017-2018. The notice was issued by the Income Tax Officer, Ward-I, Sirsa. The petitioner's primary contention was that the issuing authority lacked jurisdiction due to a CBDT circular dated 29.03.2022, which purportedly vested exclusive power to issue such notices in the National Faceless Assessment Centre (NFAC). The revenue did not dispute this contention.

What were the issues?

1. Whether the notice dated 26.02.2024 issued under Section 148 of the Income Tax Act, 1961, for AY 2017-2018 is without 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 Contentions: The petitioner argued that the issuing authority (Income Tax Officer, Ward-I, Sirsa) lacked jurisdiction to issue the Section 148 notice. This was based on the CBDT circular dated 29.03.2022, which, according to the petitioner, stipulated that the NFAC has exclusive power to issue notices under Section 148 of the Act, 1961. The petitioner relied on judgments from a co-ordinate bench 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). 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-1427-2025 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 140 CWP-1427-2025 (O&M) Date of Decision:-20.01.2025 Piyush

....Petitioner Vs. Income Tax Officer, Ward-I, Sirsa & ors. ...Respondents CORAM: HON'BLE MR. JUSTICE ARUN PALLI HON'BLE MRS. JUSTICE SUDEEPTI SHARMA Present: Ms. Monika Aggarwal and Mr. Ajit Kumar Jain, Advocates for the petitioner Ms. Gauri Neo Rampal, Sr. Standing counsel with Mr. V. Vedika Rao, Advocate (Through VC) for the respondent-Union of India. *** SUDEEPTI SHARMA, J. 1. Challenge in the instant writ petition is to notice dated 26.02.2024 issued under Section 148 of the Income Tax Act, 1961 (for short ‘Act 1961”) and conseuqential proceedings, 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 Gaurav Arora 2025.01.23 12:05 I attest to the accuracy and integrity of this document

CWP-1427-2025 2 whole records of the case. 5. The petitioner has challenged the notice dated 26.02.2024 issued under Section 148 of the Act, 1961 and conseuqential proceedings, for AY 2017-2018 issued by respondent No. 1, on the ground that he 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. (ARUN PALLI) (SUDEEPTI SHARMA) JUDGE JUDGE 20.01.2025

Gaurav Arora

Whether speaking/reasoned : Yes/No Whether reportable : Yes/No Gaurav Arora 2025.01.23 12:05 I attest to the accuracy and integrity of this document

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