DEEPAK KATHURIA vs. INCOME TAX OFFICER AND OTHERS

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CWP/18270/2025HC Punjab & HaryanaPHHC01101222202507 July 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. The Court found that the issue raised by the petitioner was covered by these previous decisions of a Co-ordinate Bench. In those cases, writ petitions challenging notices under Section 148 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 so advised. The reasoning is based on the principle that the jurisdictional authority for issuing Section 148 notices, as per the relevant circulars and judicial pronouncements, was not correctly exercised by the issuing officer in this instance. The operative direction is to quash the impugned notice and consequential actions, with liberty to the revenue to re-initiate proceedings as per law.

What were the facts?

The petitioner, Deepak Kathuria, challenged a notice dated 23.05.2025 issued under Section 148 of the Income Tax Act, 1961, for Assessment Year 2022-2023, and all consequential actions. The petitioner argued that the issuing authority lacked jurisdiction due to a CBDT circular dated 29.03.2022, which purportedly vested exclusive power to issue such notices with the National Faceless Assessment Centre (NFAC). The revenue, represented by learned counsel, did not dispute the petitioner's contention regarding the applicability of previous judgments.

What were the issues?

1. Whether the notice dated 23.05.2025 issued under Section 148 of the Income Tax Act, 1961, for AY 2022-2023 is liable to be quashed on the ground that the issuing authority lacked jurisdiction, in light of the CBDT circular dated 29.03.2022. (Question of law/mixed law and fact, turning on 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, as the CBDT circular dated 29.03.2022 specifically states that the NFAC has exclusive power to issue such notices. 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 issue involved and implicitly accepted the applicability of the cited judgments.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

CWP-18270-2025 (O&M) 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 163 CWP-18270-2025 (O&M) Date of Decision:-07.07.2025 Deepak Kathuria ....Petitioner Vs. Income Tax Officer, Ward 1 (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 23.05.2025 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 whole records of the case. 5. The petitioner has challenged the notice dated 23.05.2025 issued Gaurav Arora 2025.07.11 16:02 I attest to the accuracy and integrity of this document

CWP-18270-2025 (O&M) 2 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 07.07.2025

Gaurav Arora Whether speaking/reasoned : Yes/No Whether reportable : Yes/No Gaurav Arora 2025.07.11 16:02 I attest to the accuracy and integrity of this document

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