KRISHAN LAL vs. INCOME TAX OFFICER AND OTHERS

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CWP/6600/2025HC Punjab & HaryanaPHHC01035375202510 March 2025Bench: MR. JUSTICE ARUN PALLI,MRS. JUSTICE SUDEEPTI SHARMA2 pages
AI SummaryRemanded

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's case and Jasjit Singh's case. These prior judgments had allowed similar writ petitions on the same issue, holding that the notice under Section 148 was invalid due to lack of jurisdiction of the issuing officer. The Court granted liberty to the revenue to follow the prescribed procedure under the Income Tax Act, 1961, and proceed accordingly if so advised. The reasoning was based on the established precedent of the Co-ordinate Bench, which was not disputed by the revenue. The operative direction was to dispose of the writ petition in terms of the cited judgments, effectively quashing the notice and allowing the revenue to re-initiate proceedings correctly if they chose to do so.

What were the facts?

The petitioner, Krishan Lal, challenged a notice dated 26.02.2024 issued under Section 148 of the Income Tax Act, 1961, for Assessment Year 2020-2021. The petitioner argued that the issuing authority, the Income Tax Officer, Ward 2(1), Ludhiana, lacked jurisdiction. This was based on a CBDT circular/notification dated 29.03.2022, which allegedly vested exclusive power to issue such notices in the National Faceless Assessment Centre (NFAC). The revenue, represented by the Senior Standing Counsel, did not dispute this contention.

What were the issues?

1. Whether the notice dated 26.02.2024 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, in light of the CBDT circular/notification dated 29.03.2022? (Question of law) Assessee's contention: The petitioner argued that the notice was issued without jurisdiction by the Income Tax Officer, as the CBDT circular dated 29.03.2022 stipulated that the NFAC has exclusive power to issue notices under Section 148. 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 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-6600-2025 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 166 CWP-6600-2025 (O&M) Date of Decision:-10.03.2025 Krishan Lal ....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 26.02.2024 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 2025.03.12 19:08 I attest to the accuracy and integrity of this document

CWP-6600-2025 2 whole records of the case. 5. The petitioner has challenged the notice dated 26.02.2024 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 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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