VIJAY KUMAR GUPTA vs. INCOME TAX OFFICER AND OTHERS

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CWP/8242/2025HC Punjab & HaryanaPHHC01046512202524 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 its previous judgments in Jatinder Singh Bhangu vs. Union of India and others (CWP No. 15745-2024, decided on July 19, 2024) and Jasjit Singh vs. Union of India and others (CWP No. 21509-2023, decided on July 29, 2024). In those cases, the Court had allowed similar writ petitions on the same issue, granting liberty to the revenue to follow the prescribed procedure under the Act, 1961, and proceed accordingly if so advised. The reasoning was based on the established precedent of co-ordinate benches dealing with the jurisdictional issue arising from the CBDT circular. The operative direction was to dispose of the petition in line with the cited judgments, implying the quashing of the impugned notice and proceedings, with a liberty for the revenue to re-initiate if they chose to follow the correct procedure. No issue was expressly left undecided.

What were the facts?

The petitioner, Vijay Kumar Gupta, challenged a notice dated March 26, 2024, issued under Section 148 of the Income Tax Act, 1961, and consequential proceedings for Assessment Year 2020-2021. The challenge was based on the contention that the issuing authority lacked jurisdiction due to a CBDT circular dated March 29, 2022, which allegedly vested exclusive power to issue such notices in the National Faceless Assessment Centre (NFAC). The revenue, represented by the Income Tax Officer, Ward 3(1), Malerkotla, and others, did not dispute the petitioner's submissions.

What were the issues?

1. Whether the notice dated March 26, 2024, issued under Section 148 of the Income Tax Act, 1961, for AY 2020-2021, is without jurisdiction, considering the CBDT circular dated March 29, 2022, which purportedly grants exclusive power to the NFAC to issue such notices? (Question of law). Assessee's contention: The issuing authority lacked jurisdiction to issue the notice under Section 148 of the Act, 1961, in view of the CBDT circular dated March 29, 2022, which specifically enumerates that the NFAC has exclusive power to issue such notices. Revenue's contention: The revenue 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-8242-2025 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 165 CWP-8242-2025 (O&M) Date of Decision:-24.03.2025 Vijay Kumar Gupta ....Petitioner Vs. Income Tax Officer, Ward 3 (1), Malerkotla & 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 26.03.2024 issued under Section 148 of the Income Tax Act, 1961 (for short “Act 1961”); and consequential proceedings, 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 2025.03.28 11:34 I attest to the accuracy and integrity of this document

CWP-8242-2025 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; and consequential proceedings, 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 24.03.2025

Gaurav Arora

Whether speaking/reasoned : Yes/No Whether reportable : Yes/No Gaurav Arora 2025.03.28 11:34 I attest to the accuracy and integrity of this document

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