AJIT KAUR vs. INCOME TAX OFFICER AND OTHERS

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CWP/6685/2025HC Punjab & HaryanaPHHC01037156202511 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 (decided on July 19, 2024) and Jasjit Singh's case (decided on July 29, 2024). These prior judgments had allowed writ petitions on similar grounds, quashing the Section 148 notices and granting liberty to the revenue to follow the prescribed procedure under the Act, 1961, and proceed accordingly if advised. The reasoning was based on the precedent set by the co-ordinate benches in the cited cases, which addressed the jurisdictional issue arising from the CBDT circular concerning the NFAC's exclusive power. The operative direction was to dispose of the writ petition in line with these judgments, implying the quashing of the impugned notice and consequential actions, with liberty to the revenue to re-initiate proceedings correctly.

What were the facts?

The petitioner, Ajit Kaur, challenged a notice dated March 28, 2024, issued under Section 148 of the Income Tax Act, 1961, and consequential actions for Assessment Year 2020-2021. The challenge was based on the contention that the issuing authority lacked jurisdiction due to a CBDT circular/notification dated March 29, 2022, which purportedly granted 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 prior judgments.

What were the issues?

1. Whether the notice dated March 28, 2024, issued under Section 148 of the Income Tax Act, 1961, for AY 2020-2021 is invalid on the ground that the issuing authority lacked jurisdiction, in light of the CBDT circular/notification dated March 29, 2022, which allegedly vests exclusive power in the NFAC to issue such notices? (Question of law) Assessee's contention: The issuing authority had no jurisdiction to issue the notice under Section 148 of the Act, 1961, as per the CBDT circular/notification dated March 29, 2022, which specifically states that the NFAC has exclusive power for such issuances. The petitioner relied on the judgments 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 revenue did not dispute the issue involved and implicitly conceded to the petitioner's arguments by not controverting the reliance on the cited precedents.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

CWP-6685-2025 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 142 CWP-6685-2025 (O&M) Date of Decision:-11.03.2025 Ajit Kaur

....Petitioner Vs. Income Tax Officer,ITO Ward 6 (1), Ludhiana & ors. ...Respondents CORAM: HON'BLE MR. JUSTICE ARUN PALLI HON'BLE MRS. JUSTICE SUDEEPTI SHARMA Present: Mr. B.M. Monga, Mr. Rohit Kaura and Mr. Rajiv Sharma, Advocates 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 28.03.2024 issued under Section 148 of the Income Tax Act, 1961 (for short “Act 1961”) and 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 17:48 I attest to the accuracy and integrity of this document

CWP-6685-2025 2 whole records of the case. 5. The petitioner has challenged the notice dated 28.03.2024 issued under Section 148 of the Act, 1961 (for short “Act 1961”) and 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 11.03.2025

Gaurav Arora

Whether speaking/reasoned : Yes/No Whether reportable : Yes/No Gaurav Arora 2025.03.18 17:48 I attest to the accuracy and integrity of this document

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