SUBHASH DEWAN vs. INCOME TAX OFFICER AND OTHERS

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CWP/7521/2025HC Punjab & HaryanaPHHC01042186202519 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 vs. Union of India and Jasjit Singh vs. Union of India. These prior judgments had allowed writ petitions on similar grounds, quashing the Section 148 notices. The court granted liberty 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, which was not disputed by the revenue, that the issuing authority lacked jurisdiction in light of the CBDT circular dated 29.03.2022. The ratio decidendi is that a notice under Section 148 issued by an authority without exclusive jurisdiction, as defined by subsequent circulars, is liable to be quashed, with liberty to the revenue to initiate fresh proceedings as per law.

What were the facts?

The petitioner, Subhash Dewan, challenged a notice dated 26.03.2024 issued under Section 148 of the Income Tax Act, 1961, for Assessment Year 2020-2021. The petitioner argued that the issuing authority, Income Tax Officer, Ward 2(1), Ludhiana, lacked jurisdiction. This was based on a CBDT circular dated 29.03.2022, which allegedly grants exclusive power to the National Faceless Assessment Centre (NFAC) to issue such notices. The revenue, represented by the Union of India, 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, for AY 2020-2021, is invalid due to lack of jurisdiction of the issuing authority (Income Tax Officer, Ward 2(1), Ludhiana)? Assessee's Contention: The petitioner argued that the notice is invalid because, as per the CBDT circular dated 29.03.2022, only the National Faceless Assessment Centre (NFAC) has the exclusive power to issue notices under Section 148 of the Act, 1961. 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 learned counsel for the Union of India did not dispute the petitioner's contention and implicitly accepted 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-7521-2025 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 149 CWP-7521-2025 (O&M) Date of Decision:-19.03.2025 Subhash Dewan ....Petitioner Vs. Income Tax Officer, Ward 2 ( 1), Ludhiana & ors. ...Respondents CORAM: HON'BLE MR. JUSTICE ARUN PALLI HON'BLE MRS. JUSTICE SUDEEPTI SHARMA Present: Mr. Vishav Bharti Gupta, Mr. Ubhai Bharti Gupta, 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 26.03.2024 issued under Section 148 of the Income Tax Act, 1961 (for short “Act 1961”) 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 2025.03.24 14:52 I attest to the accuracy and integrity of this document

CWP-7521-2025 2 whole records of the case. 5. The petitioner has challenged the notice dated 26.03.2024 issued under Section 148 of the Act, 1961 for AY 2020-2021 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 19.03.2025

Gaurav Arora

Whether speaking/reasoned : Yes/No Whether reportable : Yes/No Gaurav Arora 2025.03.24 14:52 I attest to the accuracy and integrity of this document

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