GURJOT SINGH vs. INCOME TAX OFFICER AND OTHERS

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CWP/6567/2025HC Punjab & HaryanaPHHC01036233202510 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 in Jatinder Singh Bhangu vs. Union of India and Jasjit Singh vs. Union of India. In those cases, a co-ordinate bench had allowed similar writ petitions on the same issue. The court granted 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 precedent set by the co-ordinate bench's decisions, which addressed the jurisdictional issue concerning the issuance of Section 148 notices in light of the relevant CBDT circular. The ratio decidendi is that if a notice under Section 148 is issued by an authority without the requisite jurisdiction as per prevailing circulars or notifications, it is liable to be quashed, with liberty to the revenue to re-initiate proceedings following the correct procedure. The operative direction was to quash the notice and consequential actions, with liberty to the revenue.

What were the facts?

The petitioner, Gurjot Singh, challenged a notice dated 24.03.2024 issued under Section 148 of the Income Tax Act, 1961, and all consequential actions for Assessment Year 2021-2022. The challenge was based on the contention that the issuing authority lacked jurisdiction due to a CBDT circular dated 29.03.2022, which purportedly vested exclusive power to issue such notices in the National Faceless Assessment Centre (NFAC). The revenue, represented by the Income Tax Officer, Ward 6(1), Ludhiana, and others, did not dispute the petitioner's submission regarding the applicability of prior 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 2021-2022 is without jurisdiction, in light of the CBDT circular dated 29.03.2022, which allegedly grants exclusive power to the NFAC to issue such notices? (Question of law) Assessee's contention: The issuing authority lacked jurisdiction to issue the Section 148 notice, relying on the CBDT circular dated 29.03.2022, which specifies that the NFAC has exclusive power. The assessee cited the judgments in Jatinder Singh Bhangu vs. Union of India and Jasjit Singh vs. Union of India as precedents. Revenue's contention: The revenue did not dispute the petitioner's contention regarding the applicability of the cited judgments.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

CWP-6567-2025 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 157

CWP-6567-2025 (O&M) Date of Decision:-10.03.2025 Gurjot Singh

....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 2021-2022. 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 2025.03.12 19:08 I attest to the accuracy and integrity of this document

CWP-6567-2025 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 2021-2022 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 2025.03.12 19:08 I attest to the accuracy and integrity of this document

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