ALOK GARG vs. ASSISTANT COMMISSIONER OF INCOME TAX AND OTHERS

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CWP/17827/2025HC Punjab & HaryanaPHHC01096634202503 July 2025Bench: MRS. JUSTICE LISA GILL,MRS. JUSTICE SUDEEPTI SHARMA2 pages
AI SummaryRemanded

What did the High Court hold?

The High Court disposed of the writ petition in terms of the judgments passed by a Co-ordinate Bench in Jatinder Singh Bhangu vs. Union of India (CWP No. 15745-2024) and Jasjit Singh vs. Union of India (CWP No. 21509-2023), decided on July 19, 2024, and July 29, 2024, respectively. These earlier judgments had allowed similar writ petitions on the same issue, granting liberty to the revenue to follow the procedure laid down under the Act, 1961, and proceed accordingly if so advised. The court found that the issue raised in the present petition was covered by these precedents. Consequently, the notice dated March 29, 2025, and all consequential actions were set aside, with liberty granted to the revenue to initiate fresh proceedings in accordance with the law. All pending applications were also disposed of.

What were the facts?

The petitioner, Alok Garg, challenged a notice dated March 29, 2025, issued under Section 148 of the Income Tax Act, 1961, for Assessment Year 2021-2022, and all consequential actions. The petitioner argued that the issuing authority lacked jurisdiction due to a CBDT circular dated March 29, 2022, which vested exclusive power to issue such notices in the National Faceless Assessment Centre (NFAC). The respondents, represented by the Assistant Commissioner of Income Tax and others, did not dispute the petitioner's contention. The High Court of Punjab and Haryana at Chandigarh considered the matter.

What were the issues?

1. Whether the notice dated March 29, 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 light of the CBDT circular dated March 29, 2022, which purportedly grants exclusive power to the NFAC to issue such notices? (Question of law and fact, concerning Section 148 of the Income Tax Act, 1961 and CBDT Circular dated March 29, 2022). Assessee's contention: The issuing authority had no jurisdiction to issue the notice under Section 148 of the Act, 1961, as per the CBDT circular dated March 29, 2022, which vests exclusive power in 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 learned counsel appearing 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-17827-2025 (O&M) 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 143 CWP-17827-2025 (O&M) Date of Decision:-03.07.2025 Alok Garg ....Petitioner Vs. Asstt. Commissioner of Income Tax, Circle 1, Faridabad & ors.

...Respondents CORAM: HON'BLE MRS. JUSTICE LISA GILL HON'BLE MRS. JUSTICE SUDEEPTI SHARMA Present: Mr. Vishav Bharti Gupta and Ms. Mamta Gupta, 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 29.03.2025 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. 5. The petitioner has challenged the notice dated 29.03.2025 issued Gaurav Arora 2025.07.09 10:12 I attest to the accuracy and integrity of this document

CWP-17827-2025 (O&M) 2 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 03.07.2025

Gaurav Arora Whether speaking/reasoned : Yes/No Whether reportable : Yes/No Gaurav Arora 2025.07.09 10:12 I attest to the accuracy and integrity of this document

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