ASHWANI KUMAR vs. ASSISTANT COMMISSIONER OF INCOME TAX AND OTHERS

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CWP/16795/2025HC Punjab & HaryanaPHHC01091136202529 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 vs. Union of India and Jasjit Singh vs. Union of India. These prior judgments had allowed similar writ petitions on the same issue, granting liberty to the revenue to follow the prescribed procedure under the Act, 1961, and proceed accordingly if advised. The reasoning was based on the petitioner's contention, which was not disputed by the revenue, that the issuing authority lacked jurisdiction due to the CBDT circular. The operative direction was to dispose of the petition in terms of the cited precedents, with liberty to the revenue to proceed as per law.

What were the facts?

The petitioner, Ashwani Kumar, challenged a notice dated March 6, 2025, 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 issuing authority lacked jurisdiction due to a CBDT circular dated March 29, 2022, which purportedly granted exclusive power to the National Faceless Assessment Centre (NFAC) to issue such notices. The revenue, represented by the Assistant Commissioner of Income Tax, Amritsar, did not dispute the petitioner's contention regarding the applicability of prior judgments.

What were the issues?

1. Whether the notice dated March 6, 2025, issued under Section 148 of the Income Tax Act, 1961, for AY 2021-2022 is without jurisdiction, in light of the CBDT circular dated March 29, 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 Section 148 notice due to the CBDT circular dated March 29, 2022, which grants exclusive power to the NFAC. The petitioner relies on the judgments in Jatinder Singh Bhangu vs. Union of India and Jasjit Singh vs. Union of India. Revenue's Contention: The revenue 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-16795-2025 (O&M) 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 242 CWP-16795-2025 (O&M) Date of Decision:-29.05.2025 Ashwani Kumar ....Petitioner Vs. Assistant Commissioner of Income Tax, Central Circle Amritsar & others ..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 06.03.2025 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. Gaurav Arora 2025.06.03 13:16 I attest to the accuracy and integrity of this document

CWP-16795-2025 (O&M) 2 5. The petitioner has challenged the notice dated 06.03.2025 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 29.05.2025

Gaurav Arora Whether speaking/reasoned : Yes/No Whether reportable : Yes/No Gaurav Arora 2025.06.03 13:16 I attest to the accuracy and integrity of this document

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