VIJAY KUMAR ARORA vs. ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 1 FARIDABAD AND OTHERS

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CWP/5120/2025HC Punjab & HaryanaPHHC01028872202524 February 2025Bench: MR. JUSTICE ARUN PALLI,MRS. JUSTICE SUDEEPTI SHARMA3 pages
AI SummaryRemanded

What did the High Court hold?

The High Court noted that a co-ordinate bench had previously allowed writ petitions on the same issue, as raised by the petitioner, in Jatinder Singh Bhangu's case and Jasjit Singh's case. In those cases, liberty was granted to the revenue to follow the prescribed procedure under the Act. Since the present petitioner had an appeal pending before the Appellate Authority, the High Court disposed of the writ petition with a direction to the Appellate Authority to decide the petitioner's appeal in terms of the aforementioned judgments. The operative direction is to the Appellate Authority to decide the pending appeal in line with the precedents. No specific issue was left undecided, but the decision was based on the pending appeal and prior judgments.

What were the facts?

The petitioner, Vijay Kumar Arora, challenged a notice dated 29.03.2023 issued under Section 148 of the Income Tax Act, 1961, and consequential order dated 19.03.2024 under Section 144B read with Section 147 for Assessment Year 2016-2017. The challenge was based on the assertion that the Section 148 notice was issued without jurisdiction by a 'JAO' instead of the 'NFAC'. The petitioner also stated that an appeal against this action was pending before the Appellate Authority. The respondent-department did not dispute the petitioner's contentions.

What were the issues?

1. Whether the notice dated 29.03.2023, issued under Section 148 of the Income Tax Act, 1961, is without jurisdiction and invalid because it was issued by a 'JAO' instead of the 'NFAC', as mandated by the CBDT circular/notification dated 29.03.2022? (Question of law) Assessee's contention: The notice under Section 148 is invalid as it was issued by an unauthorized authority ('JAO') contrary to the CBDT notification which vests exclusive power in the 'NFAC' to issue such notices. The petitioner relies on the judgments in Jatinder Singh Bhangu vs. Union of India and Jasjit Singh vs. Union of India. Revenue's contention: The revenue did not dispute the petitioner's contentions.

Which sections of the Income-tax Act were involved?

Section 148,Section 144B,Section 147

AI-generated summary — verify with the full judgment below

CWP-5120-2025 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 152 CWP-5120-2025 (O&M) Date of Decision:-24.02.2025 Vijay Kumar Arora. ....Petitioner Vs. Asstt. Commissioner of Income Tax , Circle 1, Faridabad and ors.

...Respondents CORAM: HON'BLE MR. JUSTICE ARUN PALLI HON'BLE MRS. JUSTICE SUDEEPTI SHARMA Present: Mr. Kartik Bansal, Advocate for the petitioner Mr. Varun Issar, Sr. Standing counsel with Ms. Pridhi Sandhu, Jr. Standing counsel for the respondent-department. *** SUDEEPTI SHARMA, J. 1. Challenge in the present petition is to notice dated 29.03.2023 issued under Section 148 of the Income Tax Act, 1961 (for short ‘Act 1961”) and all consequential actions, as order dated 19.03.2024 issued under Section 144B read with Section 147 of the Act, 1961, for A.Y 2016-2017, since the notice dated 29.03.2023 issued under Section 148 of the Act, 1961 was without jurisdiction and issued by ‘JAO’ instead of ‘NFAC’ . 2. Learned counsel for the petitioner contends that the issue involved in the above 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 Gaurav Arora 2025.02.28 17:36 I attest to the accuracy and integrity of this document

CWP-5120-2025 2 others (CWP No. 21509-2023 and other connected matters), decided on 29.07.2024. Learned counsel for the petitioner has further submitted that the petitioner has preferred an appeal and the same is pending before the Appellate Authority. 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 whole records of the case. 5. The petitioner has challenged notice dated 29.03.2023 issued under Section 148 of the Act, 1961 and all consequential actions, as order dated 19.03.2024 issued under Section 144B read with Section 147 of the Act, 1961, for A.Y 2016-2017, since the notice dated 29.03.2023 issued under Section 148 of the Act, 1961 was without jurisdiction and issued by ‘JAO’ instead of ‘NFAC’, 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. Since in the present case, the appeal is pending before the Appellate Authority, the writ petition is disposed of with a direction to the Appellate Authority to decide the appeal of the petitioner, in terms of the Gaurav Arora 2025.02.28 17:36 I attest to the accuracy and integrity of this document

CWP-5120-2025 3 judgments mentioned above. 8. All the pending applications, if any, also stand disposed of. (ARUN PALLI) (SUDEEPTI SHARMA) JUDGE JUDGE 24.02.2025

Gaurav Arora

Whether speaking/reasoned : Yes/No Whether reportable : Yes/No Gaurav Arora 2025.02.28 17:36 I attest to the accuracy and integrity of this document

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