MBS BUILDCON PRIVATE LIMITED FORMALLY KNOWN AS LNB CONSTRUCTION PRIVATE LIMITED vs. INCOME TAX OFFICER AND ANOTHER

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CWP/8330/2025HC Punjab & HaryanaPHHC01038924202512 December 2025Bench: MRS. JUSTICE LISA GILL,MR. JUSTICE PARMOD GOYAL3 pages
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What did the High Court hold?

The High Court allowed the writ petition, disposing of the matter in terms of the decisions in Jatinder Singh Bhangu's case and Jasjit Singh's case. The Court noted that the co-ordinate bench had allowed similar writ petitions on the same issue. The reasoning, as extracted from Jatinder Singh Bhangu's case, indicated that Section 151A of the Act, read with Clause 3(b) of the notification dated 29.03.2022, makes the scheme of faceless assessment applicable from the stage of show cause notice under Section 148/148A. The Court found the mandate of Section 144B, 151A, and the notification to be lucid, and that departmental instructions cannot override statutory provisions. The revenue was granted liberty to follow the procedure laid down under the Act, 1961, and proceed accordingly, if so advised. The Court explicitly stated that it was not adverting to or adjudicating any other issue.

What were the facts?

The petitioner, MBS Buildcon Private Limited, formerly known as LNB Construction Private Limited, filed a writ petition before the High Court of Punjab and Haryana at Chandigarh. The petition challenged a notice dated 06.04.2023 under Section 148 of the Income Tax Act, 1961, an order dated 06.04.2023 under Section 148A(d), a show cause notice dated 18.03.2023 under Section 148A(b), and an assessment order dated 20.02.2025 under Section 147 read with Section 144 of the 1961 Act, all pertaining to assessment year 2019-20. The petitioner also sought to restrain further proceedings. The core of the challenge was the jurisdiction of the issuing authority.

What were the issues?

1. Whether the Issuing Authority had the jurisdiction to issue the notice dated 26.03.2024 under Section 148 of the Income Tax Act, 1961, in light of the CBDT circular/notification dated 29.03.2022, which allegedly vests exclusive power in the National Faceless Assessment Centre (NFAC)? (Question of law) Assessee's Contention: The petitioner argued that the issuance of the notice under Section 148 was without jurisdiction, citing the CBDT circular/notification dated 29.03.2022, which purportedly grants exclusive power to the NFAC to issue such notices. They relied on 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 respondent did not dispute the petitioner's contention.

Which sections of the Income-tax Act were involved?

Section 148,Section 148A,Section 147,Section 144,Section 151A,Section 144B

AI-generated summary — verify with the full judgment below

CWP-8330-2025 -1-

IN THE HIGH COURT OF PUNJAB AND HARYANA AT

CHANDIGARH

210

CWP-8330-2025

Date of decision :12.12.2025

MBS BUILDCON PRIVATE LIMITED FORMALLY KNOWN AS LNB CONSTRUCTION PRIVATE LIMITED

... PETITIONER

VERSUS INCOME OFFICER AND ANOTHER

...RESPONDENTS CORAM: HON'BLE MRS. JUSTICE LISA GILL HON'BLE MR. JUSTICE PARMOD GOYAL

Present: Mr. Nitin Kanwar, Advocate (through V.C.)

for the petitioner.

Ms. Gauri Neo Rampal, Sr. Standing Counsel (through V.C.)

for the respondents.

****

LISA GILL, J. (ORAL)

Prayer in this petition is for setting aside of notice dated 06.04.2023 (Annexure-P-1) under Section 148 of Income Tax Act, 1961 (for short ‘1961 Act’) order under Section 148A(d) dated 06.04.2023 (Annexure-P-2) and show cause notice under Section 148A(b) dated 18.03.2023 (Annexure-P-4) of 1961 Act and assessment order under section 147 r/w Section 144 dated on 20.02.2025 (Annexure- P-3) of 1961 Act, for assessment year 2019-20. There is a further prayer for restraining the respondent from conducting any further proceedings in the matter. 2.

Learned counsel for petitioner submits that dehors any other available ground, this writ petition be allowed on the ground that Issuing Authority had no jurisdiction to issue abovesaid notice dated 26.03.2024, in view of circular/notification dated 29.03.2022 of the CBDT, wherein, it has been MANOJ KUMAR 2025.12.16 13:33 I attest to the accuracy and integrity of this document

CWP-8330-2025 -2-

specifically enumerated that National Faceless Assessment Centre (NFAC) has exclusive power to issue notice under Section 148 of the Act, 1961. 3.

It is submitted that the said issue is covered by 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. 4.

Learned counsel appearing for the respondent does not dispute the same. 5.

We have heard learned counsel for the parties and perused the file with their able assistance. 6.

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. Relevant portion of decision dated 19.07.2024 in Jatinder Singh Bhangu's case (supra) reads as under:- “15. From the perusal of Section 151A, it is quite evident that scheme of faceless assessment is applicable from the stage of show cause notice under Section 148 as well as 148A. Clause 3(b) of notification dated 29.03.2022 issued under Section 151A clearly provides that scheme would be applicable to notice under Section 148. Even otherwise, it is a settled proposition of law that assessment proceedings commence from the stage of issuance of show cause notice. The object of introduction of faceless assessment would be defeated if show cause notice under Section 148 is issued by Jurisdictional Assessing Officer. The respondents are heavily placing reliance upon office memorandum and letter issued by departmental authorities. It is axiomatic in tax MANOJ KUMAR 2025.12.16 13:33 I attest to the accuracy and integrity of this document

CWP-8330-2025 -3-

jurisprudence that circulars, instructions and letters issued by Board or any other authority cannot override statutory provisions. The circulars are binding upon authorities and Courts are not bound by circulars. The mandate of Section 144B, 151A readwith notification dated 29.03.2022 issued thereunder is quite lucid. There is no ambiguity in the language of statutory provisions, thus, office memorandum or any other instruction issued by Board or any other authority cannot be relied upon.”

In view of the above and without adverting to or adjudicating any other issue, 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.

(LISA GILL)

JUDGE

(PARMOD GOYAL) 12.12.2025

JUDGE manoj

Whether speaking/reasoned Yes/No

Whether reportable

Yes/No

MANOJ KUMAR 2025.12.16 13:33 I attest to the accuracy and integrity of this document

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