RAMANDEEP KAUR GREWAL vs. INCOME TAX OFFICER AND OTHERS

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CWP/7483/2025HC Punjab & HaryanaPHHC01042921202518 March 2025Bench: MR. JUSTICE ARUN PALLI,MRS. JUSTICE SUDEEPTI SHARMA2 pages
AI SummaryRemanded

What did the High Court hold?

The High Court held that the present writ petition is disposed of in terms of the judgments passed by a Co-ordinate Bench in Jatinder Singh Bhangu’s case (supra), decided on 19.07.2024, and Jasjit Singh’s case (supra), decided on 29.07.2024. In those cases, the writ petitions were allowed on the same issue, granting liberty to the revenue to follow the procedure laid down under the Act, 1961, and proceed accordingly if so advised. The reasoning is based on the precedent set by the Co-ordinate Bench regarding the exclusive jurisdiction of the NFAC to issue Section 148 notices as per the CBDT circular. The operative direction is to dispose of the writ petition in line with the cited judgments, allowing the revenue to proceed afresh if they choose to do so following the correct procedure.

What were the facts?

The petitioner, Ramandeep Kaur Grewal, challenged a notice dated 26.03.2024 issued under Section 148 of the Income Tax Act, 1961, and a show cause notice dated 06.03.2025, along with consequential actions, for Assessment Year 2020-2021. The challenge was based on the ground that the issuing authority lacked jurisdiction due to a CBDT circular dated 29.03.2022, which stipulated that the National Faceless Assessment Centre (NFAC) has exclusive power to issue such notices. The revenue, represented by the Income Tax Officer, Ward 3(1), Ludhiana, and others, did not dispute the petitioner's contention regarding the applicability of previous judgments.

What were the issues?

1. Whether the notice dated 26.03.2024 issued under Section 148 of the Income Tax Act, 1961, is invalid due to lack of jurisdiction by the issuing authority, in light of the CBDT circular dated 29.03.2022, which vests exclusive power to issue such notices with the NFAC? (Question of law) Assessee's Contention: The petitioner argued that the issuing authority lacked jurisdiction to issue the Section 148 notice, relying on the CBDT circular dated 29.03.2022. The petitioner cited 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) as covering the present issue. 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-7483-2025 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 177

CWP-7483-2025 (O&M) Date of Decision:-18.03.2025 Ramandeep Kaur Grewal ....Petitioner Vs. Income Tax Officer, Ward 3(1), Ludhiana & ors. ...Respondents CORAM: HON'BLE MR. JUSTICE ARUN PALLI HON'BLE MRS. JUSTICE SUDEEPTI SHARMA Present: Mr. Nikhil Goyal and Mr. Rana Gurtej Singh, Advocates, 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 26.03.2024 issued under Section 148 of the Income Tax Act, 1961 (for short ‘Act 1961”) and show cause notice dated 06.03.2025 and all 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. Gaurav Arora 2025.03.24 14:44 I attest to the accuracy and integrity of this document

CWP-7483-2025 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 26.03.2024 issued under Section 148 of the Act, 1961 and show cause notice dated 06.03.2025 and all 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 18.03.2025

Gaurav Arora

Whether speaking/reasoned : Yes/No Whether reportable : Yes/No Gaurav Arora 2025.03.24 14:44 I attest to the accuracy and integrity of this document

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