AMANDEEP KUMAR BUDHWAR vs. ASSISTANT COMMISSIONER OF INCOME TAX AND OTHERS

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CWP/16856/2025HC Punjab & HaryanaPHHC01090207202529 May 2025Bench: MRS. JUSTICE LISA GILL,MRS. JUSTICE SUDEEPTI SHARMA2 pages
AI SummaryAllowed

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 and Jasjit Singh's case. In those cited cases, a Co-ordinate Bench had allowed similar writ petitions on the same issue. The reasoning was that the issuing authority lacked jurisdiction to issue the Section 148 notice in view of the CBDT circular dated March 29, 2022, which designated the NFAC with exclusive power. The judgments granted liberty to the revenue to follow the procedure laid down under the Act, 1961, and proceed accordingly if so advised. The operative direction was to dispose of the present writ petition in line with these precedents. Any pending applications were also disposed of.

What were the facts?

The petitioner, Amandeep Kumar Budhwar, 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 stipulated that the National Faceless Assessment Centre (NFAC) has exclusive power to issue such notices. The revenue, represented by the Assistant Commissioner of Income Tax, Central Circle, Amritsar, and others, did not dispute this contention. The case was heard by the High Court of Punjab and Haryana at Chandigarh.

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 invalid on the grounds that the issuing authority lacked jurisdiction, as per the CBDT circular dated March 29, 2022, which vests exclusive power to issue such notices with the NFAC? (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 had no jurisdiction to issue the notice under Section 148 of the Act, 1961, in light of the CBDT circular dated March 29, 2022, which grants exclusive power to the NFAC. The assessee relied on the judgments 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 contention: The revenue did not dispute the assessee's contention.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

CWP-16856-2025 (O&M) 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 277 CWP-16856-2025 (O&M) Date of Decision:-29.05.2025 Amandeep Kumar Budhwar ....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 13:15 I attest to the accuracy and integrity of this document

CWP-16856-2025 (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 13:15 I attest to the accuracy and integrity of this document

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