KIRAN JAIN SINCE DECEASED THROUGH LEGAL HEIR ARUN KUMAR vs. INCOME TAX OFFICER AND OTHERS

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CWP/15916/2025HC Punjab & HaryanaPHHC01086493202528 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 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 concerned the jurisdiction of the issuing authority to issue notices under Section 148 of the Income Tax Act, 1961, in light of the CBDT circular dated 29.03.2022. The reasoning was that the Co-ordinate Bench had already ruled on the matter. The operative direction was to grant liberty to the revenue to follow the procedure as laid down under the Act, 1961, and proceed accordingly, if so advised. Any pending applications were also disposed of.

What were the facts?

The petitioner, Kiran Jain (since deceased) through legal heir Arun Kumar, challenged a notice dated 29.08.2024 issued under Section 148 of the Income Tax Act, 1961, and an order dated 29.08.2024 issued under Section 148A(d) of the Act, for Assessment Year 2018-2019. The petitioner argued that the issuing authority lacked jurisdiction due to a CBDT circular dated 29.03.2022, which purportedly grants exclusive power to the National Faceless Assessment Centre (NFAC) to issue such notices. The respondents are the Income Tax Officer, Ward 3, Yamuna Nagar, and others.

What were the issues?

1. Whether the notice dated 29.08.2024 issued under Section 148 of the Income Tax Act, 1961, and the order dated 29.08.2024 issued under Section 148A(d) of the Act, for AY 2018-2019, are without jurisdiction, in light of the CBDT circular dated 29.03.2022, which allegedly vests exclusive power with the NFAC to issue Section 148 notices? The petitioner contended that the issuing authority lacked jurisdiction due to the CBDT circular dated 29.03.2022, which specifies that the NFAC has exclusive power to issue notices under Section 148 of the Act. The petitioner relied on judgments from 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). The revenue, represented by learned counsel, did not dispute the petitioner's contention.

Which sections of the Income-tax Act were involved?

Section 148,Section 148A(d)

AI-generated summary — verify with the full judgment below

CWP-15916-2025 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 226 CWP-15916-2025(O&M) Date of Decision:-28.05.2025 Kiran Jain (since deceased) through legal heir Arun Kumar ....Petitioner Vs. Income Tax Officer,Ward 3, Yamuna Nagar & ors. ...Respondents CORAM: HON'BLE MRS. JUSTICE LISA GILL HON'BLE MRS. JUSTICE SUDEEPTI SHARMA Present: Mr. B.M. Monga, Mr. Rohit Kaura, Mr. Rajiv Sharma, Advocates for the petitioner. Mr. Saurabh Kapoor, Sr. Standing counsel with Ms. Muskan Gupta, Advocate 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”) ; order dated 29.08.2024 issued under Section 148 A(d) of the Act, 1961 and all consequential actions, for AY 2018-2019. 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 2025.06.06 15:33 I attest to the accuracy and integrity of this document

CWP-15916-2025 2 whole records of the case. 5. The petitioner has challenged the notice dated 29.08.2024 issued under Section 148 of the Act, 1961; order dated 29.08.2024 issued under Section 148 A(d) of the Act, 1961 and all consequential actions, for AY 2018- 2019 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 28.05.2025

Gaurav Arora Whether speaking/reasoned : Yes/No Whether reportable : Yes/No Gaurav Arora 2025.06.06 15:33 I attest to the accuracy and integrity of this document

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