HARBANS SINGH vs. UNION OF INDIA AND OTHERS

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CWP/3921/2025HC Punjab & HaryanaPHHC01022229202513 February 2025Bench: MR. JUSTICE ARUN PALLI,MRS. JUSTICE SUDEEPTI SHARMA2 pages
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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's case and Jasjit Singh's case. In those cited cases, a Co-ordinate Bench had allowed similar writ petitions on the same issue, which was the lack of jurisdiction for issuing notices under Section 148 of the Act, 1961, due to the CBDT circular dated 29.03.2022. The Court granted liberty to the revenue to follow the procedure laid down under the Act, 1961, and proceed accordingly if so advised. The operative direction was to dispose of the writ petition in terms of the aforementioned precedents. No issue was expressly left undecided.

What were the facts?

The petitioner, Harbans Singh, challenged a notice dated 27.03.2024 issued under Section 148 of the Income Tax Act, 1961, an approval dated 26.03.2024 under Section 151, and an assessment order dated 29.01.2025 for Assessment Year 2020-2021. The challenge was based on the contention that the issuing authority lacked jurisdiction due to a CBDT circular dated 29.03.2022, which allegedly vested exclusive power to issue Section 148 notices with the National Faceless Assessment Centre (NFAC). The revenue did not dispute the petitioner's submissions regarding the applicability of prior judgments.

What were the issues?

1. Whether the notice dated 27.03.2024 issued under Section 148 of the Income Tax Act, 1961, the approval dated 26.03.2024 under Section 151, and the assessment order dated 29.01.2025 for AY 2020-2021 are invalid on the grounds of lack of jurisdiction by the issuing authority, in light of the CBDT circular dated 29.03.2022, which purportedly grants exclusive power to the NFAC to issue Section 148 notices? (Question of law and mixed fact and law, turning on Section 148 and Section 151 of the Act, 1961 and CBDT Circular dated 29.03.2022). Assessee's Contention: The issuing authority lacked jurisdiction to issue the impugned notice, approval, and assessment order due to the CBDT circular dated 29.03.2022, which vests exclusive power with the NFAC. The petitioner relied on the 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 revenue did not dispute the petitioner's submissions.

Which sections of the Income-tax Act were involved?

Section 148,Section 151

AI-generated summary — verify with the full judgment below

CWP-3921-2025 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 139-H CWP-3921-2025 (O&M) Date of Decision:-13.02.2025 Harbans Singh

....Petitioner Vs. Union of India & ors. ...Respondents CORAM: HON'BLE MR. JUSTICE ARUN PALLI HON'BLE MRS. JUSTICE SUDEEPTI SHARMA Present: Mr. Karan Nehra, Advocate for the petitioner Mr. Varun Issar, Sr. Standing counsel for the respondent-Union of India. *** SUDEEPTI SHARMA, J. 1. Challenge in the instant writ petition is to notice dated 27.03.2024 issued under Section 148 of the Income Tax Act, 1961 (for short “Act 1961”); approval dated 26.03.2024 issued under Section 151 of the Act, 1961 and assessment order dated 29.01.2025 passed in proceedings in exercise of powers under Section 148 of the Act, 1961 and consequential proceedings for AY 2020-2021. 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 Gaurav Arora 2025.02.15 11:34 I attest to the accuracy and integrity of this document

CWP-3921-2025 2 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 27.03.2024 issued under Section 148 of the Act, 1961; approval dated 26.03.2024 issued under Section 151 of the Act, 1961 and assessment order dated 29.01.2025 passed in proceedings in exercise of powers under Section 148 of the Act, 1961 and consequential proceedings for AY 2020-2021, 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 13.02.2025

Gaurav Arora

Whether speaking/reasoned : Yes/No Whether reportable : Yes/No Gaurav Arora 2025.02.15 11:34 I attest to the accuracy and integrity of this document

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