RANJIT KAUR ALIAS RANJIT KAUR KHURANA vs. INCOME TAX OFFICER AND OTHERS

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CWP/6563/2025HC Punjab & HaryanaPHHC01036224202510 March 2025Bench: MR. JUSTICE ARUN PALLI,MRS. JUSTICE SUDEEPTI SHARMA2 pages
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What did the High Court hold?

The High Court allowed the writ petition, disposing of it in terms of the judgments passed 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). These prior judgments had allowed similar writ petitions on the same issue, granting liberty to the revenue to follow the procedure laid down under the Income Tax Act, 1961, and proceed accordingly if so advised. The reasoning was based on the established precedent of co-ordinate benches dealing with the same jurisdictional challenge arising from the CBDT circular. The operative direction was to dispose of the petition in line with these 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, Ranjit Kaur @ Ranjit Kaur Khurana, challenged a notice dated 24.03.2024 issued under Section 148 of the Income Tax Act, 1961, for Assessment Year 2020-2021, and all consequential actions. The challenge was based on the contention that the issuing authority lacked jurisdiction due to a CBDT circular dated 29.03.2022, which purportedly grants exclusive power to the National Faceless Assessment Centre (NFAC) to issue such notices. The revenue, represented by the Income Tax Officer, Ward 6(1), Ludhiana, and others, did not dispute the petitioner's contention regarding the applicability of previous judgments.

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 by the issuing authority, in light of the CBDT circular dated 29.03.2022. (Question of law). Assessee's contention: The issuing authority had no jurisdiction to issue the notice under Section 148 as the CBDT circular dated 29.03.2022 vests exclusive power to issue such notices with the NFAC. Revenue's contention: The revenue did not dispute the petitioner's contention and implicitly accepted the applicability of prior judgments on the issue.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

CWP-6563-2025 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 154

CWP-6563-2025 (O&M) Date of Decision:-10.03.2025 Ranjit Kaur @ Ranjit Kaur Khurana ....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. Nikhil Goyal, Advocate, for the petitioner. Mr. Ranvijay Singh, Sr. Standing counsel for the respondent. *** SUDEEPTI SHARMA, J. 1. Challenge in the present petition is to notice dated 24.03.2024 issued under Section 148 of the Income Tax Act, 1961 (for short ‘Act 1961”) and all consequential actions, 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 2025.03.18 17:45 I attest to the accuracy and integrity of this document

CWP-6563-2025 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 and all consequential actions, for AY 2020-2021 on the ground that the Issuing Authority 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 10.03.2025

Gaurav Arora

Whether speaking/reasoned : Yes/No Whether reportable : Yes/No Gaurav Arora 2025.03.18 17:45 I attest to the accuracy and integrity of this document

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