PREETI GULATI vs. INCOME TAX OFFICER, WARD 2(1), FARIDABAD AND OTHERS

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CWP/17644/2025HC Punjab & HaryanaPHHC01097482202501 July 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 previous judgments by a Co-ordinate Bench in Jatinder Singh Bhangu vs. Union of India and others (CWP No. 15745-2024, decided on July 19, 2024) and Jasjit Singh vs. Union of India and others (CWP No. 21509-2023, decided on July 29, 2024). In those cases, the writ petitions were allowed on the same issue, with liberty granted to the revenue to follow the procedure laid down under the Act, 1961, and proceed accordingly if advised. The reasoning was based on the precedent set by the Co-ordinate Bench regarding the jurisdictional issue arising from the CBDT circular. The operative direction was to dispose of the present writ petition in line with these judgments, granting liberty to the revenue to proceed as per law. All pending applications were also disposed of.

What were the facts?

The petitioner, Preeti Gulati, challenged a notice dated March 28, 2025, issued under Section 148 of the Income Tax Act, 1961, for Assessment Year 2021-2022. The challenge was also extended to all consequential actions. The petitioner argued that the authority issuing the notice lacked jurisdiction, citing a CBDT circular dated March 29, 2022, which purportedly grants exclusive power to the National Faceless Assessment Centre (NFAC) to issue such notices. The respondents, represented by the Income Tax Officer, Ward 2(1), Faridabad, and others, were present. The High Court considered the submissions of both parties.

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 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 Income Tax 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 exclusive power granted to the NFAC by the CBDT circular dated March 29, 2022. Revenue's contention: The learned counsel for the Union of India did not dispute the petitioner's contention.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

CWP-17644-2025 [1] IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 186

CWP-17644-2025 Date of decision: 01.07.2025 Preeti Gulati ...Petitioner Versus Income Tax Officer, Ward 2 (1), 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. 4. We have heard learned counsel for the parties and perused the Gaurav Arora 2025.07.04 16:09 I attest to the accuracy and integrity of this document

CWP-17644-2025 [2] 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 16:09 I attest to the accuracy and integrity of this document

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