NANITA SHARMA vs. INCOME TAX OFFICER AND OTHERS

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CWP/15302/2025HC Punjab & HaryanaPHHC01084486202526 May 2025Bench: MRS. JUSTICE LISA GILL,MRS. JUSTICE SUDEEPTI SHARMA2 pages
AI SummaryRemanded

What did the High Court hold?

The High Court disposed of the writ petition in terms of the judgments previously passed by a Co-ordinate Bench in Jatinder Singh Bhangu's case (decided on 19.07.2024) and Jasjit Singh's case (decided on 29.07.2024). In those cases, the writ petitions were allowed on similar issues, with liberty granted to the revenue to follow the procedure laid down under the Act, 1961, and proceed accordingly if so advised. The reasoning was that the issuing authority lacked jurisdiction based on the CBDT circular. The operative direction was to dispose of the present petition in line with the precedents, effectively quashing the notice but allowing the revenue to re-initiate the process if legally permissible. No issue was expressly left undecided.

What were the facts?

The petitioner, Nanita Sharma, challenged a notice dated 29.03.2025 issued under Section 148 of the Income Tax Act, 1961, for Assessment Year 2021-2022. The challenge was also extended to 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 29.03.2022, which purportedly vested exclusive power to issue Section 148 notices in the National Faceless Assessment Centre (NFAC). The revenue, represented by the Income Tax Officer, Ward 2 (1), Faridabad, and others, did not dispute the petitioner's contention regarding the applicability of previous judgments.

What were the issues?

1. Whether the notice dated 29.03.2025, 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? Assessee's Contentions: The petitioner contended that the issuing authority lacked jurisdiction to issue the Section 148 notice. This argument was based on the CBDT circular/notification dated 29.03.2022, which stipulated that the NFAC has exclusive power to issue such notices. The petitioner relied on the judgments of a Co-ordinate Bench of the High Court 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 for the Union of India did not dispute the petitioner's contention regarding the issue being covered by the aforementioned judgments.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

CWP-15302-2025 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 189 CWP-15302-2025 (O&M) Date of Decision:-26.05.2025 Nanita Sharma ....Petitioner Vs. Income Tax Officer, Ward 2 (1), 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 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 2025.05.28 14:30 I attest to the accuracy and integrity of this document

CWP-15302-2025 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 26.05.2025

Gaurav Arora Whether speaking/reasoned : Yes/No Whether reportable : Yes/No Gaurav Arora 2025.05.28 14:30 I attest to the accuracy and integrity of this document

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