NAND LAL LABHU RAM vs. DEPUTY COMMISSIONER OF INCOME TAX AND OTHERS

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CWP/27912/2025HC Punjab & HaryanaPHHC01151581202519 September 2025Bench: MR. JUSTICE DEEPAK SIBAL,MS. JUSTICE LAPITA BANERJI3 pages
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What did the High Court hold?

The Tribunal allowed the writ petition, following the decisions of a Co-ordinate Bench in Jatinder Singh Bhangu's case and Jasjit Singh's case. These earlier judgments had also dealt with similar issues and allowed the writ petitions. The Tribunal granted liberty to the revenue to follow the procedure laid down under the Income Tax Act, 1961, and proceed accordingly, if so advised. The specific reasoning in the cited cases, which the present bench adopted, likely revolved around the jurisdictional aspect of issuing Section 148 notices in light of the CBDT circular. The operative direction was to permit the revenue to re-initiate proceedings following the correct legal procedure, implying the original notice and order were flawed on jurisdictional grounds. No issue was expressly left undecided.

What were the facts?

The petitioner is challenging a notice dated March 11, 2023, issued under Section 148 of the Income Tax Act, 1961, an order dated March 17, 2024, passed under Section 147 of the Act, and all consequential proceedings for Assessment Year 2019-2020. The primary ground for challenge is that the issuing authority lacked jurisdiction, citing a CBDT circular dated March 29, 2022, which allegedly vests exclusive power to issue Section 148 notices with the National Faceless Assessment Centre (NFAC). The petitioner also mentioned that an appeal is pending before the Appellate Authority. The respondents did not dispute the petitioner's contentions.

What were the issues?

1. Whether the notice issued under Section 148 of the Income Tax Act, 1961, and the subsequent order under Section 147 are invalid due to lack of jurisdiction, considering the CBDT circular dated March 29, 2022, which purportedly grants exclusive power to the National Faceless Assessment Centre (NFAC) to issue such notices? Assessee's contention: The issuing authority lacked jurisdiction to issue the notice under Section 148 of the Act, 1961, as per the CBDT circular dated March 29, 2022, which specifies that the NFAC has exclusive power. The petitioner relies on the judgments of a Co-ordinate Bench in Jatinder Singh Bhangu vs. Union of India and others (CWP No. 15745-2024, decided on 19.07.2024) and Jasjit Singh vs. Union of India and others (CWP No. 21509 of 2023, decided on 29.07.2024). Revenue's contention: Not recorded.

Which sections of the Income-tax Act were involved?

Section 148,Section 147

AI-generated summary — verify with the full judgment below

Challenge in the present petition is to Notice dated 11.03.2023 issued under Section 148 of the Income Tax Act, 1961 (for short 'Act 1961"), order dated 17.03.2024 passed under Section 147 of the Act, 1961 and all consequential proceedings for the Assessment year 2019-2020, on the ground that Issuing Authority had no jurisdiction to issue the same, in view of circular/notification dated 29.03.2022 of the CBDT, wherein, it has been specifically enumerated that National Faceless Assessment Centre (NFAC) has exclusive power to issue notice under Section 148 of the Act, 1961.

Learned counsel for petitioner contends that the issue involved in the present writ petition is covered by judgment passed by a JYOTI THAKUR 2025.09.23 08:43 I attest to the accuracy and integrity of this document

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 of 2023 and other connected matters), decided on 29.07.2024. Learned counsel for the petitioner has further submitted that petitioner has preferred an appeal and same is pending before Appellate Authority. 3.

Learned counsel appearing for respondents has also not disputed the same. 4.

We have heard learned counsel for the parties and perused the file with their able assistance. 5.

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. Relevant portion of decision dated 19.07.2024 in Jatinder Singh Bhangu's case (supra) reads as under:- JYOTI THAKUR 2025.09.23 08:43 I attest to the accuracy and integrity of this document

Jyoti Thakur

JYOTI THAKUR 2025.09.23 08:43 I attest to the accuracy and integrity of this document

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