SUSHMA MARWAHA vs. INCOME TAX OFFICER AND OTHERS

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CWP/5388/2025HC Punjab & HaryanaPHHC01030491202527 February 2025Bench: MR. JUSTICE ARUN PALLI,MRS. JUSTICE SUDEEPTI SHARMA2 pages
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What did the High Court hold?

The High Court of Punjab and Haryana allowed the writ petition. The Court noted that the issue raised by the petitioner was identical to the issues decided in the cases of Jatinder Singh Bhangu and Jasjit Singh by a Co-ordinate Bench of the same Court. In those cases, the writ petitions were allowed, and the revenue was granted liberty to follow the procedure laid down under the Act, 1961, and proceed accordingly if so advised. Therefore, following the precedent set by the Co-ordinate Bench, the present writ petition was disposed of in terms of those judgments. The operative direction was to dispose of the writ petition in terms of the cited judgments, implying that the notice was quashed, with liberty to the revenue to issue a fresh notice if permissible under the law and procedure.

What were the facts?

The petitioner, Sushma Marwaha, challenged a notice dated 24.03.2024 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 6(1), Ludhiana. The petitioner argued that the issuing authority lacked jurisdiction based on a CBDT circular dated 29.03.2022, 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. The High Court of Punjab and Haryana considered the arguments and the case records.

What were the issues?

1. Whether the notice dated 24.03.2024, issued under Section 148 of the Income Tax Act, 1961, for AY 2020-2021, is invalid due to lack of jurisdiction of the issuing authority (Income Tax Officer, Ward 6(1), Ludhiana)? (Question of law) Assessee's contention: The petitioner argued that the notice is bad in law as the Income Tax Officer lacked jurisdiction to issue it. This is based on the CBDT circular dated 29.03.2022, which vests exclusive power to issue Section 148 notices with the National Faceless Assessment Centre (NFAC). The petitioner relied on the judgments of a Co-ordinate Bench 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 learned counsel appearing for the Union of India 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-5388-2025 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 141 CWP-5388-2025 (O&M) Date of Decision:-27.02.2025 Sushma Marwaha ....Petitioner Vs. Income Tax Officer, Ward 6 (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 24.03.2024 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 2025.03.04 11:15 I attest to the accuracy and integrity of this document

CWP-5388-2025 2 whole records of the case. 5. The petitioner has challenged the notice dated 24.03.2024 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 27.02.2025

Gaurav Arora

Whether speaking/reasoned : Yes/No Whether reportable : Yes/No Gaurav Arora 2025.03.04 11:15 I attest to the accuracy and integrity of this document

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