ATUL SEHGAL vs. INCOME TAX OFFICER AND OTHERS

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CWP/19008/2025HC Punjab & HaryanaPHHC01105220202511 July 2025Bench: MRS. JUSTICE LISA GILL,MRS. JUSTICE SUDEEPTI SHARMA2 pages
AI SummaryRemanded

What did the High Court hold?

The High Court held that the issue was covered by its previous judgments in Jatinder Singh Bhangu's case and Jasjit Singh's case. In those cases, the writ petitions were allowed on similar grounds, granting liberty to the revenue to follow the procedure laid down under the Act, 1961, and proceed accordingly if advised. Therefore, following the precedent, the present writ petition was disposed of in terms of those judgments. The operative direction was to dispose of the writ petition in terms of the cited judgments, implying the quashing of the impugned notice and consequential actions, with liberty to the revenue to re-initiate proceedings if permissible under law. No issue was expressly left undecided.

What were the facts?

The petitioner, Atul Sehgal, challenged a notice dated 27.06.2025 issued under Section 148 of the Income Tax Act, 1961, and all consequential actions for Assessment Year 2021-2022. The petitioner argued that the issuing authority lacked jurisdiction to issue the notice, citing a CBDT circular dated 29.03.2022 which stated that the National Faceless Assessment Centre (NFAC) has exclusive power to issue such notices. The revenue, represented by the Income Tax Officer, Ward 3(1), Ludhiana, and others, did not dispute the petitioner's contention. The High Court had previously dealt with similar issues in the cases of Jatinder Singh Bhangu and Jasjit Singh.

What were the issues?

1. Whether the notice dated 27.06.2025 issued under Section 148 of the Income Tax Act, 1961, for AY 2021-2022 is invalid due to lack of jurisdiction of the issuing authority, in light of the CBDT circular dated 29.03.2022? (Question of law) The assessee contended that the issuing authority lacked jurisdiction to issue the notice under Section 148 of the Act, 1961, as per the CBDT circular dated 29.03.2022, which vests exclusive power in the NFAC. The assessee relied on the judgments in Jatinder Singh Bhangu vs. Union of India and Jasjit Singh vs. Union of India. The revenue did not dispute the assessee'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 114 CWP-19008-2025 (O&M) Date of Decision:-11.07.2025 Atul Sehgal

....Petitioner Vs. Income Tax Officer, Ward 3 (1), Ludhiana & 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. Ranvijay Singh, Sr. Standing counsel with Ms. Nikita Garg, Jr. Standing counsel for the respondents. *** SUDEEPTI SHARMA, J. 1. Challenge in the present petition is to notice dated 27.06.2025 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 27.06.2025 issued Gaurav Arora 2025.07.18 15:53 I attest to the accuracy and integrity of this document

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 11.07.2025

Gaurav Arora Whether speaking/reasoned : Yes/No Whether reportable : Yes/No Gaurav Arora 2025.07.18 15:53 I attest to the accuracy and integrity of this document

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