YOGESH JAIN vs. ASSISTANT COMMISSIONER OF INCOME TAX AND OTHERS

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CWP/14524/2025HC Punjab & HaryanaPHHC01077826202522 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 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, granting liberty to the revenue to follow the procedure laid down under the Act, 1961, and proceed accordingly if so advised. The reasoning is based on the established precedent of the Co-ordinate Bench on the identical issue concerning the jurisdiction of the issuing authority for Section 148 notices in light of the relevant CBDT circular. The operative direction is to dispose of the present petition in terms of the aforementioned judgments, implying that the notice issued to the petitioner is likely to be quashed or set aside, with liberty to the revenue to re-issue it following the correct procedure. No issue was expressly left undecided.

What were the facts?

The petitioner, Yogesh Jain, challenged a notice dated 29.08.2024 issued under Section 148 of the Income Tax Act, 1961, for Assessment Year 2021-2022, along with all consequential actions. The petitioner argued that the authority issuing the notice lacked jurisdiction, citing a CBDT circular dated 29.03.2022 which purportedly grants exclusive power to the National Faceless Assessment Centre (NFAC) to issue such notices. The revenue, represented by the Assistant Commissioner of Income Tax, Central Circle 2, Gurgaon, and others, did not dispute the petitioner's contention regarding the applicability of previous judgments.

What were the issues?

1. Whether the notice dated 29.08.2024, issued under Section 148 of the Income Tax Act, 1961, for AY 2021-2022, is invalid due to lack of jurisdiction of the issuing authority, in light of the CBDT circular dated 29.03.2022, which allegedly vests exclusive power in the NFAC to issue such notices? (Question of law and fact, concerning Section 148 of the Act, 1961 and CBDT Circular dated 29.03.2022). Assessee's Contention: The issuing authority lacked jurisdiction to issue the notice under Section 148 of the Act, 1961, as per the CBDT circular dated 29.03.2022, which grants exclusive power to the NFAC. The petitioner relies on 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). Revenue's Contention: The revenue did not dispute the issue and implicitly conceded to the petitioner's arguments by not controverting the reliance on previous judgments.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

CWP-14524-2025 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 164

CWP-14524-2025 (O&M) Date of Decision:-22.05.2025 Yogesh Jain ....Petitioner Vs. Asstt. Commissioner of Income Tax, Central Circle 2, Gurgaon & ors. ...Respondents CORAM: HON'BLE MRS. JUSTICE LISA GILL HON'BLE MRS. JUSTICE SUDEEPTI SHARMA Present: Mr. Nikhil Goyal and Mr. Rana Gurtej Singh, Advocates, 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 29.08.2024 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. Gaurav Arora 2025.05.27 12:52 I attest to the accuracy and integrity of this document

CWP-14524-2025 2 5. The petitioner has challenged the notice dated 29.08.2024 issued 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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