GLENVIEW VILLAS KASAULI vs. JOINT COMMISSIONER OF INCOME TAX OSD CENTRAL CIRCLE 1CHANDIGARH AND OTHERS

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CWP/16108/2025HC Punjab & HaryanaPHHC01088780202528 May 2025Bench: MRS. JUSTICE LISA GILL,MRS. JUSTICE SUDEEPTI SHARMA2 pages
AI SummaryRemanded

What did the High Court hold?

The High Court noted that the petitioner had challenged various notices and orders for AY 2022-2023, citing a CBDT circular dated March 29, 2022, which purportedly states that the NFAC has exclusive power to issue notices under Section 148. The Court observed that a co-ordinate bench had previously allowed writ petitions on similar issues in Jatinder Singh Bhangu's case and Jasjit Singh's case, granting liberty to the revenue to follow the prescribed procedure. Since the judgment records that an appeal was pending before the Appellate Authority, the High Court disposed of the writ petition. The operative direction was to the Appellate Authority to decide the petitioner's appeal in terms of the aforementioned judgments. No specific finding was made on the validity of the notices or orders themselves, as the matter was remitted for decision by the appellate authority.

What were the facts?

The petitioner, Glenview Villas, Kasauli, challenged a notice dated March 4, 2024, issued under Section 148 of the Income Tax Act, 1961, an assessment order dated March 26, 2024, under Section 143(3) read with Section 147, a demand notice dated March 26, 2025, under Section 156, and penalty notices dated March 28, 2025, under Sections 274 read with Section 270A and Section 274 read with Section 271AAD(1)(ii) of the Act, all pertaining to Assessment Year 2022-2023. The petitioner argued that the issues were covered by previous judgments of the High Court and that an appeal was pending before the Appellate Authority. The revenue did not dispute these contentions.

What were the issues?

1. Whether the notice issued under Section 148 of the Income Tax Act, 1961, and consequential orders are valid, considering the CBDT circular dated March 29, 2022, which allegedly grants exclusive power to the National Faceless Assessment Centre (NFAC) to issue such notices? (Question of law) Assessee's contentions: - The issue is covered by the judgments of this 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). - An appeal has been preferred by the petitioner and is pending before the Appellate Authority. Revenue's contentions: - The revenue did not dispute the contentions raised by the petitioner.

Which sections of the Income-tax Act were involved?

Section 148,Section 143,Section 147,Section 156,Section 274,Section 270A,Section 271AAD(1)(ii)

AI-generated summary — verify with the full judgment below

CWP-16108-2025 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 261 CWP-16108-2025 (O&M) Date of Decision:-28.05.2025 Glenview Villas, Kasauli ....Petitioner Vs. Joint Commissioner of Income Tax (OSD), Central Circle I, Chd & ors. ...Respondents CORAM: HON'BLE MRS. JUSTICE LISA GILL HON'BLE MRS. JUSTICE SUDEEPTI SHARMA Present: Mr. Salil Kapoor and Mr. Kushagra Mahajan, Advocates for the petitioner Mr. Vaibhav Gupta, Standing counsel for the respondent. *** SUDEEPTI SHARMA, J. 1. Challenge in the present petition is to notice dated 04.03.2024 issued under Section 148 of the Income Tax Act, 1961 (for short ‘Act 1961’); assessment order dated 26.03.2024 issued under Section 143 (3) read with Section 147 of the Act, 1961; demand notice dated 26.03.2025 issued under Section 156 of the Act, 1961; penalty notices dated 28.03.2025 issued under Sections 274 read with Section 270A of the Act, 1961 and Section 274 read with Section 271 AAD (1) (ii) of the Act, 1961 and all consequential actions, for AY 2022-2023. 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. Learned counsel for the petitioner has further submitted that the petitioner has preferred an appeal and the same is pending before the Appellate Authority. 3. Learned counsel appearing for Union of India has also not Gaurav Arora 2025.06.06 15:32 I attest to the accuracy and integrity of this document

CWP-16108-2025 2 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 04.03.2024 issued under Section 148 of the Act, 1961; assessment order dated 26.03.2024 issued under Section 143 (3) read with Section 147 of the Act, 1961; demand notice dated 26.03.2025 issued under Section 156 of the Act, 1961; penalty notices dated 28.03.2025 issued under Sections 274 read with Section 270A of the Act, 1961 and Section 274 read with Section 271 AAD (1) (ii) of the Act, 1961 and all consequential actions, for AY 2022-2023, 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. Since in the present case, the appeal is pending before the Appellate Authority, the writ petition is disposed of with a direction to the Appellate Authority to decide the appeal of the petitioner, in terms of the judgments mentioned above. 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 15:32 I attest to the accuracy and integrity of this document

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