JYOTI AGGARWAL vs. INCOME TAX OFFICER AND OTHERS

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CWP/7524/2025HC Punjab & HaryanaPHHC01042775202519 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 (decided on 19.07.2024) and Jasjit Singh's case (decided on 29.07.2024). These prior judgments had allowed similar writ petitions on the same issue, which concerned the jurisdiction of the issuing authority for 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 precedent set by the co-ordinate benches in the cited cases, which addressed the jurisdictional issue arising from the CBDT circular of 29.03.2022. The operative direction was to grant liberty to the revenue to re-initiate proceedings following the correct procedure.

What were the facts?

The petitioner, Jyoti Aggarwal, challenged a notice dated 12.04.2023 issued under Section 148 of the Income Tax Act, 1961, for Assessment Year 2019-2020. The notice was issued by the Income Tax Officer, Ward 1, Barnala. The petitioner's primary contention was that the issuing authority lacked jurisdiction due to a CBDT circular/notification dated 29.03.2022, which purportedly vested exclusive power to issue such notices in the National Faceless Assessment Centre (NFAC). The revenue, represented by standing counsel, did not dispute the petitioner's submissions.

What were the issues?

1. Whether the notice dated 12.04.2023, issued under Section 148 of the Income Tax Act, 1961, for AY 2019-2020, is invalid due to lack of jurisdiction of the issuing authority, in light of the CBDT circular/notification dated 29.03.2022? (Question of law and fact, concerning Section 148 of the Act). Assessee's Contention: The petitioner argued that the notice was issued without jurisdiction because the CBDT circular dated 29.03.2022 stipulated that the NFAC has exclusive power to issue notices under Section 148. The petitioner relied on the judgments of a co-ordinate bench 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 submissions.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

CWP-7524-2025 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 152 CWP-7524-2025 (O&M) Date of Decision:-19.03.2025 Jyoti Aggarwal ....Petitioner Vs. Income Tax Officer, Ward 1, Barnala & 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. Vaibhav Gupta, Standing counsel for the respondent. *** SUDEEPTI SHARMA, J. 1. Challenge in the instant writ petition is to notice dated 12.04.2023 issued under Section 148 of the Income Tax Act, 1961 (for short “Act 1961”) for AY 2019-2020. 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-7524-2025 2 whole records of the case. 5. The petitioner has challenged the notice dated 12.04.2023 issued under Section 148 of the Act, 1961 for AY 2019-2020 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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