RITA KHANNA vs. INCOME TAX OFFICER, WARD 2(1), FARIDABAD AND OTHERS

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CWP/8048/2025HC Punjab & HaryanaPHHC01045532202524 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's case and Jasjit Singh's case. These prior judgments had allowed writ petitions on similar grounds, finding that the issuing authority lacked jurisdiction due to the CBDT circular of 29.03.2022. The principle established is that notices under Section 148 of the Income Tax Act, 1961, issued by authorities other than the NFAC, are invalid. The Court granted liberty to the revenue to follow the procedure laid down under the Act, 1961, and proceed accordingly if so advised. No specific amount in dispute was recorded. All pending applications were also disposed of.

What were the facts?

The petitioner, Rita Khanna, challenged a notice dated 13.03.2024 issued under Section 148 of the Income Tax Act, 1961, for Assessment Year 2017-2018, along with consequential actions. The petitioner argued 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 2 (1), Faridabad, and others, did not dispute the petitioner's contention regarding the applicability of prior judgments.

What were the issues?

1. Whether the notice dated 13.03.2024 issued under Section 148 of the Income Tax Act, 1961, for AY 2017-2018 is invalid on the grounds that the issuing authority lacked jurisdiction, in light of the CBDT circular dated 29.03.2022 stipulating exclusive power for the NFAC to issue such notices? (Question of law and mixed fact/law, concerning Section 148 of the Act). Assessee's Contention: The issuing authority had no jurisdiction to issue the notice under Section 148 of the Act, 1961, as per the CBDT circular dated 29.03.2022, which vests exclusive power in the NFAC. The assessee relied on 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). Revenue's Contention: The revenue did not dispute the issue.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

CWP-8048-2025 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 135 CWP-8048-2025 (O&M) Date of Decision:-24.03.2025 Rita Khanna ....Petitioner Vs. Income Tax Officer, Ward 2 (1), Faridabad & ors. ...Respondents CORAM: HON'BLE MR. JUSTICE ARUN PALLI HON'BLE MRS. JUSTICE SUDEEPTI SHARMA Present: Mr. Kartik Bansal, Advocate for the petitioner. Mr. Varun Issar, Sr. Standing counsel with Ms. Pridhi Sandhu, Jr. Standing counsel for the respondent. *** SUDEEPTI SHARMA, J. 1. Challenge in the present petition is to notice dated 13.03.2024 issued under Section 148 of the Income Tax Act, 1961 (for short ‘Act 1961”) and conseuqential actions, for AY 2017-2018. 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 2025.03.28 11:32 I attest to the accuracy and integrity of this document

CWP-8048-2025 2 whole records of the case. 5. The petitioner has challenged the notice dated 13.03.2024 issued under Section 148 of the Act, 1961 and conseuqential actions, for AY 2017-2018, 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 24.03.2025

Gaurav Arora

Whether speaking/reasoned : Yes/No Whether reportable : Yes/No Gaurav Arora 2025.03.28 11:32 I attest to the accuracy and integrity of this document

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