MADHU GUPTA vs. INCOME TAX OFFICER AND OTHERS

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CWP/18110/2025HC Punjab & HaryanaPHHC01099983202504 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. The Court found that the issue raised by the petitioner was covered by previous judgments of a Co-ordinate Bench in Jatinder Singh Bhangu's case and Jasjit Singh's case. In those cases, the writ petitions were allowed on similar grounds, with liberty granted to the revenue to follow the procedure laid down under the Act, 1961, and proceed accordingly if advised. Therefore, the present writ petition was disposed of in terms of these prior judgments. The operative direction was to dispose of the petition in terms of the cited precedents, implying the quashing of the impugned notice and granting liberty to the revenue to re-initiate proceedings if permissible under law. All pending applications were also disposed of.

What were the facts?

The petitioner, Madhu Gupta, challenged a notice dated 28.05.2025 issued under Section 148 of the Income Tax Act, 1961, and all consequential actions for Assessment Year 2022-2023. The petitioner argued that the issuing authority lacked jurisdiction due to CBDT Circular/Notification dated 29.03.2022, which vests exclusive power to issue such notices in the National Faceless Assessment Centre (NFAC). The revenue, represented by the Income Tax Officer, Ward 1(3), Faridabad, and others, did not dispute this contention. The High Court of Punjab and Haryana at Chandigarh considered the matter.

What were the issues?

1. Whether the notice dated 28.05.2025 issued under Section 148 of the Income Tax Act, 1961, for AY 2022-2023 is invalid on the grounds that the issuing authority lacked jurisdiction, in light of CBDT Circular/Notification dated 29.03.2022 which designates the NFAC with exclusive power to issue such notices? (Question of law) 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/Notification dated 29.03.2022, 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-18110-2025 [1] IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 149

CWP-18110-2025 Date of decision: 04.07.2025 Madhu Gupta ...Petitioner Versus Income Tax Officer, Ward 1(3), Faridabad and others ...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 28.05.2025 issued under Section 148 of the Income Tax Act, 1961 (for short ‘Act 1961”) and all consequential actions, for AY 2022-2023. 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 2025.07.14 16:51 I attest to the accuracy and integrity of this document

CWP-18110-2025 [2] whole records of the case. 5. The petitioner has challenged the notice dated 28.05.2025 issued under Section 148 of the Act, 1961 and all consequential actions, for AY 2022-2023 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 04.07.2025 Gaurav Arora Whether speaking/reasoned:- Yes/No Whether reportable:- Yes/No Gaurav Arora 2025.07.14 16:51 I attest to the accuracy and integrity of this document

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