AMAN CHUGH vs. INCOME TAX OFFICER AND OTHERS

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CWP/7289/2025HC Punjab & HaryanaPHHC01041074202518 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. The Court noted that the issue raised by the petitioner was covered by the judgments of a Co-ordinate Bench in Jatinder Singh Bhangu vs. Union of India and Jasjit Singh vs. Union of India. In those cases, the writ petitions were allowed on similar grounds, with liberty granted to the revenue to follow the prescribed procedure under the Act, 1961, and proceed accordingly if advised. Consequently, the present writ petition was disposed of in terms of these prior judgments. The operative direction was to dispose of the petition in terms of the cited cases, implying the quashing of the impugned notice and allowing the revenue to initiate fresh proceedings if they chose to do so following the correct procedure.

What were the facts?

The petitioner, Aman Chugh, challenged a notice dated 24.03.2024 issued under Section 148 of the Income Tax Act, 1961, for Assessment Year 2022-2023. The petitioner argued that the issuing authority, Income Tax Officer, Ward 6(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 with the National Faceless Assessment Centre (NFAC). The revenue, represented by the Income Tax Officer and others, did not dispute the petitioner's contention regarding the applicability of previous 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 2022-2023, is without jurisdiction in light of the CBDT circular/notification dated 29.03.2022, which purportedly grants exclusive power to the NFAC to issue such notices? Assessee's Contention: The petitioner argued that the Income Tax Officer lacked the jurisdiction to issue the Section 148 notice due to the CBDT circular dated 29.03.2022, which stipulated that the NFAC has exclusive power. The petitioner relied on the judgments in Jatinder Singh Bhangu vs. Union of India and Jasjit Singh vs. Union of India. Revenue's Contention: The revenue did not dispute the petitioner's contentions and did not present any arguments against the petitioner's reliance on the aforementioned judgments.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

CWP-7289-2025 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 151 CWP-7289-2025 (O&M) Date of Decision:-18.03.2025 Aman Chugh ....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. 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 24.03.2024 issued under Section 148 of the Income Tax Act, 1961 (for short “Act 1961”) for AY 2022-2023. 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-7289-2025 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 for AY 2022-2023 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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