TANIKA GARG vs. INCOME TAX OFFICER AND OTHERS

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CWP/7285/2025HC Punjab & HaryanaPHHC01039949202518 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. In those cited cases, the writ petitions were allowed on similar issues, with liberty granted to the revenue to follow the procedure laid down under the Act, 1961, and proceed accordingly if so advised. The reasoning was based on the petitioner's contention that the issuing authority lacked jurisdiction due to the CBDT circular dated 29.03.2022, which was not disputed by the revenue. The ratio decidendi is that notices under Section 148 of the Income Tax Act, 1961, issued by authorities other than the designated NFAC, in contravention of CBDT circulars, are liable to be quashed. The operative direction was to dispose of the petition in terms of the aforementioned judgments, implying that the Section 148 notice was set aside, with the possibility of the revenue re-issuing it after complying with the correct procedure.

What were the facts?

The petitioner, Tanika Garg, filed a writ petition challenging a notice dated 27.03.2024 issued under Section 148 of the Income Tax Act, 1961, for Assessment Year 2021-2022. The notice was issued by the Income Tax Officer, Ward 3, Patiala. The petitioner's primary contention was 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 did not dispute this contention.

What were the issues?

1. Whether the notice dated 27.03.2024 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 petitioner argued that the Income Tax Officer, Ward 3, Patiala, lacked the jurisdiction to issue the Section 148 notice because the CBDT circular dated 29.03.2022 specifically states that the NFAC has exclusive power to issue such notices. The petitioner relied on the judgments of a Co-ordinate Bench of this Court 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-7285-2025 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 148 CWP-7285-2025 (O&M) Date of Decision:-18.03.2025 Tanika Garg ....Petitioner Vs. Income Tax Officer, Ward 3 Patiala & 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. Saurabh Kapoor, Sr. Standing counsel with Ms. Muskan Gupta, Advocate for the respondent. *** SUDEEPTI SHARMA, J. 1. Challenge in the instant writ petition is to notice dated 27.03.2024 issued under Section 148 of the Income Tax Act, 1961 (for short “Act 1961”) 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 2025.03.21 19:15 I attest to the accuracy and integrity of this document

CWP-7285-2025 2 whole records of the case. 5. The petitioner has challenged the notice dated 27.03.2024 issued under Section 148 of the Act, 1961 for AY 2021-2022 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 18.03.2025

Gaurav Arora

Whether speaking/reasoned : Yes/No Whether reportable : Yes/No Gaurav Arora 2025.03.21 19:15 I attest to the accuracy and integrity of this document

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