NAVRATAN SHARMA vs. INCOME TAX OFFICER AND OTHERS

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CWP/5290/2025HC Punjab & HaryanaPHHC01028515202525 February 2025Bench: MR. JUSTICE ARUN PALLI,MRS. JUSTICE SUDEEPTI SHARMA2 pages
AI SummaryRemanded

What did the High Court hold?

The High Court held that the issue was covered by previous judgments of its Co-ordinate Benches in Jatinder Singh Bhangu vs. Union of India and Jasjit Singh vs. Union of India. In those cases, writ petitions were allowed on similar grounds, with liberty granted to the revenue to follow the prescribed procedure under the Act, 1961, and proceed accordingly if advised. Consequently, the present writ petition was disposed of in terms of these earlier judgments. The Court did not expressly leave any issue undecided. The operative direction was to dispose of the petition in terms of the cited precedents, implying the quashing of the impugned notice and granting liberty to the revenue to re-initiate proceedings correctly.

What were the facts?

The petitioner, Navratan Sharma, challenged a notice dated March 26, 2024, issued under Section 148 of the Income Tax Act, 1961, for Assessment Year 2020-2021. The notice was issued by the Income Tax Officer, Ward 2(1), Ludhiana. The petitioner contended that the issuing authority lacked jurisdiction due to a CBDT circular/notification dated March 29, 2022, which stipulated that the National Faceless Assessment Centre (NFAC) has exclusive power to issue such notices. The revenue, represented by the Senior Standing Counsel, did not dispute this contention.

What were the issues?

1. Whether the notice dated March 26, 2024, issued under Section 148 of the Income Tax Act, 1961, for AY 2020-2021, is without jurisdiction, in light of the CBDT circular/notification dated March 29, 2022, which vests exclusive power to issue such notices in the NFAC? (Question of law) Assessee's Contentions: The petitioner argued that the notice was issued by an authority without jurisdiction, relying on the CBDT circular/notification dated March 29, 2022, which designates the NFAC as the sole authority for issuing Section 148 notices. The petitioner cited the judgments in Jatinder Singh Bhangu vs. Union of India and Jasjit Singh vs. Union of India as precedents. Revenue's Contentions: The revenue did not dispute the petitioner's contentions.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

CWP-5290-2025 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 140 CWP-5290-2025 (O&M) Date of Decision:-25.02.2025 Navratan Sharma ....Petitioner Vs. Income Tax Officer, Ward 2 (1) Ludhiana & ors. ...Respondents CORAM: HON'BLE MR. JUSTICE ARUN PALLI HON'BLE MRS. JUSTICE SUDEEPTI SHARMA Present: Mr. Vishav Bharti Gupta, Advocate for the petitioner Mr. Ranvijay Singh, Sr. Standing counsel for the respondent. *** SUDEEPTI SHARMA, J. 1. Challenge in the instant writ petition is to notice dated 26.03.2024 issued under Section 148 of the Income Tax Act, 1961 (for short “Act 1961”) 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 2025.02.28 17:28 I attest to the accuracy and integrity of this document

CWP-5290-2025 2 whole records of the case. 5. The petitioner has challenged the notice dated 26.03.2024 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 25.02.2025

Gaurav Arora

Whether speaking/reasoned : Yes/No Whether reportable : Yes/No Gaurav Arora 2025.02.28 17:28 I attest to the accuracy and integrity of this document

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