RAM ASRA GOYAL EDUCATION AND RESEARCH SOCIETY vs. ASSISTANT COMMISSIONER OF INCOME TAX EXEMPTIONS AND OTHERS

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CWP/18919/2025HC Punjab & HaryanaPHHC01102822202510 July 2025Bench: MRS. JUSTICE LISA GILL,MRS. JUSTICE SUDEEPTI SHARMA2 pages
AI SummaryRemanded

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 vs. Union of India and Jasjit Singh vs. Union of India. The Court found that the issue raised by the petitioner was covered by these previous decisions. Consequently, the notice dated June 25, 2025, issued under Section 148 of the Income Tax Act, 1961, for AY 2019-2020, was deemed invalid due to lack of jurisdiction. The revenue was granted liberty to follow the procedure laid down under the Act, 1961, and proceed accordingly if so advised. The operative direction was 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, Ram Asra Goyal Education and Research Society, challenged a notice dated June 25, 2025, issued under Section 148 of the Income Tax Act, 1961, for Assessment Year 2019-2020. The petitioner argued that the issuing authority lacked jurisdiction due to a CBDT circular dated March 29, 2022, which vests exclusive power to issue such notices in the National Faceless Assessment Centre (NFAC). The revenue, represented by the Assistant Commissioner of Income Tax Exemptions, did not dispute this contention. The High Court considered previous judgments by its co-ordinate benches on similar issues.

What were the issues?

1. Whether the notice dated June 25, 2025, issued under Section 148 of the Income Tax Act, 1961, for AY 2019-2020 is invalid on the grounds that the issuing authority lacked jurisdiction, in light of the CBDT circular dated March 29, 2022, which designates the NFAC with exclusive power to issue such notices? (Question of law) Assessee's contentions: The petitioner argued that the notice was issued without jurisdiction by an unauthorized authority, citing the CBDT circular dated March 29, 2022, which mandates that the NFAC has exclusive power to issue notices under Section 148. The petitioner relied on the judgments in Jatinder Singh Bhangu vs. Union of India and Jasjit Singh vs. Union of India. Revenue's contentions: The revenue did not dispute the petitioner's contentions.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 168 CWP-18919-2025 (O&M) Date of Decision:-10.07.2025 Ram Asra Goyal Education and Research Society ....Petitioner Vs. Asstt. Commissioner of Income Tax Exemptions, Circle 1, Chandigarh & 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 25.06.2025 issued under Section 148 of the Income Tax Act, 1961 (for short ‘Act 1961”) and all consequential actions, for AY 2019-2020. 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. Gaurav Arora 2025.07.18 15:52 I attest to the accuracy and integrity of this document

2 5. The petitioner has challenged the notice dated 25.06.2025 issued under Section 148 of the Act, 1961 and all consequential actions, for AY 2019-2020 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 10.07.2025

Gaurav Arora Whether speaking/reasoned : Yes/No Whether reportable : Yes/No Gaurav Arora 2025.07.18 15:52 I attest to the accuracy and integrity of this document

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