BIR BHAN vs. UNION OF INDIA AND OTHERS

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CWP/4340/2025HC Punjab & HaryanaPHHC01024202202517 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 in Jatinder Singh Bhangu's case and Jasjit Singh's case. These prior judgments had allowed writ petitions on the same issue, granting liberty to the revenue to follow the procedure laid down under the Act, 1961, and proceed accordingly if so advised. The reasoning was based on the petitioner's contention regarding the lack of jurisdiction of the issuing authority due to the CBDT circular dated 29.03.2022, which was not disputed by the revenue. The ratio decidendi is that notices issued under Section 148 of the Act, 1961, by authorities lacking jurisdiction as per CBDT circulars, are liable to be quashed, with liberty to the revenue to re-initiate proceedings following the correct procedure. The operative direction was to dispose of the petition in terms of the cited precedents.

What were the facts?

The petitioner, Bir Bhan, challenged a notice dated 27.03.2024 issued under Section 148 of the Income Tax Act, 1961, for Assessment Year 2020-2021. The petitioner argued that the issuing authority lacked jurisdiction due to a CBDT circular dated 29.03.2022, which purportedly vested exclusive power to issue such notices in the National Faceless Assessment Centre (NFAC). The revenue did not dispute this contention. The High Court considered previous judgments on identical issues.

What were the issues?

1. Whether the notice dated 27.03.2024 issued under Section 148 of the Income Tax Act, 1961, for AY 2020-2021 is without jurisdiction in light of the CBDT circular dated 29.03.2022, which allegedly grants exclusive power to the NFAC to issue such notices? (Question of law/mixed law and fact, turning on Section 148 of the Act and the interpretation of the CBDT circular). Assessee's contention: The petitioner argued that the notice was issued by an authority without jurisdiction, citing the CBDT circular dated 29.03.2022 which purportedly grants exclusive power to the NFAC to issue Section 148 notices. 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 contention.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

CWP-4340-2025 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 150 CWP-4340-2025 (O&M) Date of Decision:-17.02.2025 Bir Bhan ....Petitioner Vs. Union of India & ors.

...Respondents CORAM: HON'BLE MR. JUSTICE ARUN PALLI HON'BLE MRS. JUSTICE SUDEEPTI SHARMA Present: Mr. B.S. Jaswal, Advocate for the petitioner Mr. Saurabh Kapoor, Sr. Standing counsel with Ms. Muskan Gupta, Advocate for the respondent-department. *** 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”) and conseuqential 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 disputed the same. 4. We have heard learned counsel for the parties and perused the Gaurav Arora 2025.02.24 11:04 I attest to the accuracy and integrity of this document

CWP-4340-2025 2 whole records of the case. 5. The petitioner has challenged the notice dated 27.03.2024 issued under Section 148 of the Act, 1961, for AY 2020-2021 issued by respondent No. 1, on the ground that he 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 17.02.2025

Gaurav Arora

Whether speaking/reasoned : Yes/No Whether reportable : Yes/No Gaurav Arora 2025.02.24 11:04 I attest to the accuracy and integrity of this document

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