M/S S N REALTORS PRIVATE LIMITED vs. DEPUTY COMMISSIONER OF INCOME TAX CENTRAL CIRCLE I AND OTHERS

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CWP/16823/2025HC Punjab & HaryanaPHHC01087943202529 May 2025Bench: MRS. JUSTICE LISA GILL,MRS. JUSTICE SUDEEPTI SHARMA2 pages
AI SummaryRemanded

What did the High Court hold?

The High Court noted that a co-ordinate bench of the Court had previously allowed writ petitions on the same issue in Jatinder Singh Bhangu's case and Jasjit Singh's case, granting liberty to the revenue to follow the prescribed procedure. In the present case, since an appeal was pending before the Appellate Authority, the High Court disposed of the writ petition with a direction to the Appellate Authority to decide the petitioner's appeal in terms of the aforementioned judgments. The reasoning is based on the precedent set by the co-ordinate bench regarding the jurisdictional issue concerning Section 148 notices and the CBDT circular. The ratio decidendi is that if a similar issue has been decided by a co-ordinate bench, and an appeal is pending, the appellate authority should decide the appeal in line with those precedents. The operative direction is to the Appellate Authority to decide the appeal in terms of the cited judgments.

What were the facts?

The petitioner, M/s S N Realtors Pvt. Ltd., challenged a notice dated March 21, 2023, issued under Section 148 of the Income Tax Act, 1961, for Assessment Year 2020-2021, and 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 petitioner also stated that an appeal was pending before the Appellate Authority. The revenue, represented by the Dy. Commissioner of Income Tax, did not dispute the petitioner's contentions. The High Court perused the records and heard the counsel for both parties.

What were the issues?

1. Whether the notice dated March 21, 2023, issued under Section 148 of the Income Tax Act, 1961, for AY 2020-2021, is invalid on the grounds that the issuing authority lacked jurisdiction in view 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 Contentions: The petitioner contended that the issuing authority had no jurisdiction to issue the notice under Section 148 of the Act, 1961, citing the CBDT circular dated March 29, 2022, which purportedly grants exclusive power to the NFAC. The petitioner also submitted that the issue is covered by previous judgments of this Court in Jatinder Singh Bhangu vs. Union of India and Jasjit Singh vs. Union of India, and that an appeal is pending before the Appellate Authority. Revenue's Contentions: The learned counsel for the Union of India 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-16823-2025 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 258 CWP-16823-2025 (O&M) Date of Decision:-29.05.2025 M/s S N Realtors Pvt. Ltd. ....Petitioner Vs. Dy. Commissioner of Income Tax Central Circle I, Gurugram & ors. ...Respondents CORAM: HON'BLE MRS. JUSTICE LISA GILL HON'BLE MRS. JUSTICE SUDEEPTI SHARMA Present: Mr. Chetan Mittal, Sr. Advocate with Mr. Rishabh Kapoor, Mr. Puneet Aggarwal, Mr. Yuvraj Singh, Mr. Himanshu Gupta, Advocates for the petitioner. Mr. Vaibhav Gupta, Standing counsel for the respondents. *** SUDEEPTI SHARMA, J. 1. Challenge in the present petition is to notice dated 21.03.2023 issued under Section 148 of the Income Tax Act, 1961 (for short ‘Act 1961”) and all consequential actions, for AY 2020-2021. 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 disputed the same. Gaurav Arora 2025.06.03 13:16 I attest to the accuracy and integrity of this document

CWP-16823-2025 2 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 21.03.2023 issued under Section 148 of the Act, 1961 and all consequential actions, for AY 2020-2021, 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. 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 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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