B G TEXTILES vs. INCOME TAX OFFICER AND OTHERS

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CWP/19143/2025HC Punjab & HaryanaPHHC01105308202511 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 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). In those cases, the writ petitions were allowed on similar issues, with liberty granted to the revenue to follow the prescribed procedure under the Act, 1961, and proceed accordingly if advised. The reasoning was based on the petitioner's contention that the issuing authority lacked jurisdiction due to the CBDT circular dated March 29, 2022, which was not disputed by the revenue. The ratio decidendi is that notices issued under Section 148 by authorities other than the NFAC, contrary to the CBDT circular, are liable to be quashed. The operative direction was to quash the notice and consequential actions, with liberty to the revenue to initiate fresh proceedings as per law.

What were the facts?

The petitioner, B.G. Textiles, challenged a notice dated April 10, 2024, issued under Section 148 of the Income Tax Act, 1961, and all consequential actions for Assessment Year 2017-2018. The challenge was directed against the Income Tax Officer, Ward 3(1), Ludhiana, and other respondents. The petitioner argued that the issuing authority lacked jurisdiction due to a CBDT circular dated March 29, 2022, which purportedly vested exclusive power to issue Section 148 notices with the National Faceless Assessment Centre (NFAC). The revenue did not dispute this contention.

What were the issues?

1. Whether the notice dated April 10, 2024, issued under Section 148 of the Income Tax Act, 1961, for AY 2017-2018 is invalid on the grounds that the issuing authority lacked jurisdiction, in view of the CBDT circular dated March 29, 2022, which allegedly grants exclusive power to the NFAC to issue such notices? (Question of law and fact, concerning 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 as per the CBDT circular dated March 29, 2022, which states 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 contention: 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

CWP-19143-2025 (O&M) 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 156 CWP-19143-2025 (O&M) Date of Decision:-11.07.2025 B.G. Textiles ....Petitioner Vs. Income Tax Officer, ITO 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 10.04.2024 issued under Section 148 of the Income Tax Act, 1961 (for short ‘Act 1961”) and all consequential actions, for AY 2017-2018. 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 10.04.2024 issued Gaurav Arora 2025.07.25 12:05 I attest to the accuracy and integrity of this document

CWP-19143-2025 (O&M) 2 under Section 148 of the Act, 1961 and all consequential actions, for AY 2017-2018 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 2025.07.25 12:05 I attest to the accuracy and integrity of this document

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