AGGARWAL YARNS AND FABRICS PRIVATE LIMITED vs. INCOME TAX OFFICER WARD 1 PANIPAT AND ORS

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CWP/4770/2025HC Punjab & HaryanaPHHC01027510202520 February 2025Bench: MR. JUSTICE ARUN PALLI,MR. JUSTICE DEEPINDER SINGH NALWA2 pages
AI SummaryPartly Allowed

What did the High Court hold?

The High Court held that the issue in question was squarely covered by the judgments of its Co-ordinate Bench in Jatinder Singh Bhangu and Jasjit Singh (supra). In those cases, identical notices issued by the JAO were quashed, and the petitions filed by the assessees were allowed. The reasoning was that post the introduction of faceless assessment under Section 151A read with Section 144B, the JAO is not empowered to issue a notice under Section 148. The Court followed the precedent set by the Co-ordinate Bench, quashing the notice dated March 19, 2024, issued to the petitioner. The liberty was granted to the respondent/Revenue to follow the prescribed procedure under the 1961 Act and proceed accordingly. The petition was disposed of in terms of the aforementioned judgments.

What were the facts?

The petitioner, Aggarwal Yarns and Fabrics Private Limited, sought a writ of certiorari to quash a notice dated March 19, 2024, issued under Section 148 of the Income Tax Act, 1961, along with all consequential proceedings. The notice pertained to the assessment year 2020-21. The petitioner argued that following the introduction of faceless assessment under Section 151A read with Section 144B of the Act, a notice under Section 148 cannot be issued by the Jurisdictional Assessing Officer (JAO). The respondents, represented by the Income Tax Officer, Ward-1, Panipat, and others, did not dispute the factual position presented by the petitioner. The matter was heard through video conferencing.

What were the issues?

1. Whether a notice under Section 148 of the Income Tax Act, 1961, can be issued by the Jurisdictional Assessing Officer (JAO) after the introduction of the concept of faceless assessment under Section 151A read with Section 144B of the 1961 Act? (Question of law) Assessee's Contention: The petitioner argued that the impugned notice under Section 148, issued by the JAO, is invalid because the introduction of faceless assessment procedures under Section 151A read with Section 144B prohibits such issuance by the JAO. The petitioner relied on two prior judgments of a Co-ordinate Bench of the High Court: CWP No. 15745-2024 (Jatinder Singh Bhangu Vs. Union of India and others, decided on 19.07.2024) and CWP No. 21509-2023 (Jasjit Singh vs. Union of India and others, decided on 29.07.2024). Revenue's Contention: The judgment records no specific argument from the respondents.

Which sections of the Income-tax Act were involved?

Section 148,Section 151A,Section 144B

AI-generated summary — verify with the full judgment below

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IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

CWP-4770-2025

Date of decision: 20.02.2025

Aggarwal Yarns and Fabrics Private Limited

...Petitioner

Versus

Income Tax Officer, Ward-1, Panipat, and others ….Respondents

CORAM: HON'BLE MR. JUSTICE ARUN PALLI

HON'BLE MR. JUSTICE DEEPINDER SINGH NALWA

Present: Ms. Divya Arora, Advocate, for the petitioner.

(Through Video Conferencing)

****

ARUN PALLI, J. (Oral)

A Certiorari is prayed for, to quash the impugned notice dated 19.03.2024 (P-1), issued under Section 148 of the Income Tax Act, 1961 (‘1961 Act’), and all consequential proceedings.

Learned counsel for the petitioner submits, at the outset, that the matter in issue is squarely covered by an order and judgment, rendered by a Co-ordinate Bench of this Court in CWP No. 15745-2024 (Jatinder Singh Bhangu Vs. Union of India and others, decided on 19.07.2024), as also in CWP No. 21509-2023 (Jasjit Singh vs. Union of India and others, decided on 29.07.2024).

Served with the advance copy of the petition, Ms. Gauri Neo Rampal, learned Senior Standing Counsel, along with Ms. V.Vedika Rao, Advocate, for the respondents, is present through virtual mode. The factual position, as set out above, is not disputed. We have heard learned counsel for the parties and perused the records.

As indicated earlier, the petitioner has assailed the notice dated 19.03.2024 (P-1), issued under Section 148 of the 1961 Act, as regards the assessment year 2020-21. For, post introduction of the AMIT KUMAR 2025.02.21 13:22 I attest to the accuracy and authenticity of this document

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concept of faceless assessment under Section 151A read with Section 144B of the 1961 Act, notice under Section 148 of the 1961 Act cannot be issued by the Jurisdictional Assessing Officer (JAO).

An identical issue was examined by the Co-ordinate Bench of this Court in Jatinder Singh Bhangu and Jasjit Singh (supra), and upon thorough analysis of the matter, the notice(s) issued by the JAO were quashed and the petition(s) filed by the assessee(s) were allowed. But, with liberty to the respondent/Revenue to follow the procedure laid down under the 1961 Act and proceed accordingly.

In the wake of the above, and as prayed by learned counsel for the parties, the petition is disposed of, in terms of Jatinder Singh Bhangu and Jasjit Singh (supra).

(ARUN PALLI)

JUDGE

(DEEPINDER SINGH NALWA)

JUDGE 20.02.2025 Ak Sharma Whether speaking/reasoned Yes/No Whether reportable Yes/No

AMIT KUMAR 2025.02.21 13:22 I attest to the accuracy and authenticity of this document

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