MUKESH MITTAL SINCE DECEASED THROUGH HIS LEGAL HEIR vs. INCOME TAX OFFICER AND OTHERS

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CWP/3414/2025HC Punjab & HaryanaPHHC01018119202506 February 2025Bench: MR. JUSTICE ARUN PALLI,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's case (decided on 19.07.2024) and Jasjit Singh's case (decided on 29.07.2024). In those cases, the writ petitions were allowed on the same issue, granting liberty to the revenue to follow the procedure as laid down under the Act, 1961, and proceed accordingly, if so advised. The reasoning was based on the petitioner's contention that the issuing authority lacked jurisdiction due to the CBDT circular dated 29.03.2022, which purportedly grants exclusive power to the NFAC to issue notices under Section 148. The revenue did not dispute this contention. The operative direction was to dispose of the writ petition in terms of the cited precedents, implying the quashing of the impugned order and notice with liberty to the revenue to re-initiate proceedings if advised, following the correct procedure.

What were the facts?

The petitioner, Mukesh Mittal (since deceased) through his legal heir Sh. Akshay Mittal, challenged an order dated 17.04.2024 passed under Section 148A(d) of the Income Tax Act, 1961, and a notice dated 17.04.2024 issued under Section 148 of the Act, for Assessment Year 2017-2018. The challenge was based on the ground that the issuing authority lacked jurisdiction due to a CBDT circular dated 29.03.2022, which purportedly granted exclusive power to the National Faceless Assessment Centre (NFAC) to issue such notices. The respondents, Income Tax Officer Ward 2(1), Chd. & ors., were represented by the Union of India.

What were the issues?

1. Whether the order dated 17.04.2024 issued under Section 148A(d) and the notice dated 17.04.2024 issued under Section 148 of the Income Tax Act, 1961, for AY 2017-2018 are invalid on the ground that the issuing authority lacked jurisdiction, in light of the CBDT circular dated 29.03.2022 which allegedly vests exclusive power in the NFAC to issue notices under Section 148. Assessee's contention: The petitioner argued that the issuing authority had no jurisdiction to issue the impugned order and notice, as per the CBDT circular dated 29.03.2022, which specifically enumerates that the NFAC has exclusive power to issue notices under Section 148 of the Act, 1961. The petitioner relied on 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 learned counsel appearing for the Union of India did not dispute the petitioner's contention.

Which sections of the Income-tax Act were involved?

Section 148A,Section 148

AI-generated summary — verify with the full judgment below

CWP-3414-2025 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 132 CWP-3414-2025 (O&M) Date of Decision:-06.02.2025 Mukesh Mittal (since deceased) through its legal heir Sh. Akshay Mittal ....Petitioner Vs. Income Tax Officer Ward 2(1), Chd. & ors. ...Respondents CORAM: HON'BLE MR. JUSTICE ARUN PALLI HON'BLE MRS. JUSTICE SUDEEPTI SHARMA Present: Mr. Mukul Pampher and Ms. Kajal Garg, Advocate for the petitioner Ms. Urvashi Dhugga, Sr. Standing counsel for the respondent-Union of India. *** SUDEEPTI SHARMA, J. 1. Challenge in the instant writ petition is to order dated 17.04.2024 issued under Section 148 A (d) of the Income Tax Act, 1961 (for short ‘Act 1961”) and notice dated 17.04.2024 issued under Section 148 of the Act, 1961, 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. Gaurav Arora 2025.02.13 11:04 I attest to the accuracy and integrity of this document

CWP-3414-2025 2 4. We have heard learned counsel for the parties and perused the whole records of the case. 5. The petitioner has challenged the order dated 17.04.2024 issued under Section 148 A (d) of the Act, 1961 and notice dated 17.04.2024 issued under Section 148 of the Act, 1961, 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. (ARUN PALLI) (SUDEEPTI SHARMA) JUDGE JUDGE 06.02.2025

Gaurav Arora

Whether speaking/reasoned : Yes/No Whether reportable : Yes/No Gaurav Arora 2025.02.13 11:04 I attest to the accuracy and integrity of this document

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