SAVITA ARORA vs. INCOME TAX OFFICER, WARD 2(3), FARIDABAD AND OTHERS

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CWP/17453/2025HC Punjab & HaryanaPHHC01096309202501 July 2025Bench: MRS. JUSTICE LISA GILL,MRS. JUSTICE SUDEEPTI SHARMA2 pages
AI SummaryRemanded

What did the High Court hold?

The High Court held that the present writ petition is disposed of in terms of the judgments passed by a Co-ordinate Bench in Jatinder Singh Bhangu's case (decided on July 19, 2024) and Jasjit Singh's case (decided on July 29, 2024). In those cases, the writ petitions were allowed on the same issue raised by the petitioner, granting liberty to the revenue to follow the procedure laid down under the Act, 1961, and proceed accordingly if so advised. The reasoning is based on the precedent set by the Co-ordinate Bench concerning the jurisdictional issue of issuing Section 148 notices in light of the CBDT circular. The operative direction is to dispose of the petition in terms of the cited judgments, implying the quashing of the impugned notice and consequential actions, with liberty to the revenue to re-initiate proceedings correctly. No issue was expressly left undecided.

What were the facts?

The petitioner, Savita Arora, challenged a notice dated March 28, 2025, issued under Section 148 of the Income Tax Act, 1961, and all consequential actions for Assessment Year 2021-2022. The challenge was directed against the Income Tax Officer, Ward 2(3), Faridabad, and others. 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 senior and junior standing counsel, did not dispute the petitioner's contention regarding the applicability of previous judgments.

What were the issues?

1. Whether the notice dated March 28, 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, in view of the CBDT circular dated March 29, 2022, which vests exclusive power to issue such notices with the NFAC? (Question of law and mixed fact/law, turning on Section 148 of the Income Tax Act, 1961 and CBDT Circular dated 29.03.2022). Assessee's Contention: The petitioner argued that the notice was issued without jurisdiction by the Income Tax Officer, as the exclusive power to issue Section 148 notices lies with the NFAC, citing the CBDT circular dated March 29, 2022. The petitioner 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 petitioner's contention and implicitly conceded that the issue was covered by the aforementioned judgments.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

CWP-17453-2025 [1] IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 155

CWP-17453-2025 Date of decision: 01.07.2025 Savita Arora ...Petitioner Versus Income Tax Officer, Ward 2 (3), Faridabad & others ...Respondents CORAM: HON’BLE MRS. JUSTICE LISA GILL HON'BLE MRS. JUSTICE SUDEEPTI SHARMA Present: Mr. Kartik Bansal, Advocate 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 28.03.2025 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. Gaurav Arora 2025.07.04 16:02 I attest to the accuracy and integrity of this document

CWP-17453-2025 [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 28.03.2025 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 01.07.2025 Gaurav Whether speaking/reasoned:- Yes/No Whether reportable:- Yes/No Gaurav Arora 2025.07.04 16:02 I attest to the accuracy and integrity of this document

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