NISHI SOOD vs. INCOME TAX OFFICER AND OTHERS

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CWP/6947/2025HC Punjab & HaryanaPHHC01038862202512 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's case and Jasjit Singh's case. These prior judgments had allowed writ petitions on similar grounds concerning the jurisdiction to issue Section 148 notices. The High Court granted liberty to the revenue to follow the procedure as laid down under the Act, 1961, and proceed accordingly, if so advised. The operative direction was to set aside the impugned notices and consequential actions, with the possibility for the revenue to re-initiate proceedings following the correct legal procedure. No specific issue was left undecided; the court followed established precedent.

What were the facts?

The petitioner, Nishi Sood, challenged a notice dated March 28, 2024, issued under Section 148 of the Income Tax Act, 1961, and a show cause notice dated March 5, 2025, along with all consequential actions for Assessment Year 2017-2018. The challenge was based on the assertion that the issuing authority lacked jurisdiction due to a CBDT circular dated March 29, 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 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 2017-2018, is without jurisdiction in light of the CBDT circular dated March 29, 2022, which vests exclusive power in the NFAC to issue such notices? (Question of law) Assessee's contention: The issuing authority lacked jurisdiction to issue the Section 148 notice due to the CBDT circular dated March 29, 2022, which designates the NFAC as the sole authority for issuing such notices. The assessee relies 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 petitioner's contention and implicitly conceded to the applicability of the cited precedents.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

CWP-6947-2025 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 140

CWP-6947-2025 (O&M) Date of Decision:-12.03.2025 Nishi Sood ....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 28.03.2024 issued under Section 148 of the Income Tax Act, 1961 (for short ‘Act 1961”) and show cause notice dated 05.03.2025 and all consequential actions, for AY 2017-2018. 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. Gaurav Arora 2025.03.28 10:54 I attest to the accuracy and integrity of this document

CWP-6947-2025 2 4. We have heard learned counsel for the parties and perused the whole records of the case. 5. The petitioner has challenged the notice dated 28.03.2024 issued under Section 148 of the Act, 1961 and show cause notice dated 05.03.2025 and all consequential actions, for AY 2017-2018 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 12.03.2025

Gaurav Arora

Whether speaking/reasoned : Yes/No Whether reportable : Yes/No Gaurav Arora 2025.03.28 10:54 I attest to the accuracy and integrity of this document

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