SHELLY AGRAWAL vs. INCOME TAX OFFICER, WARD 2(3), FARIDABAD AND OTHERS

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CWP/8368/2025HC Punjab & HaryanaPHHC01047020202524 April 2025Bench: MRS. JUSTICE LISA GILL,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. In those cited cases, a Co-ordinate Bench had allowed similar writ petitions on the same issue. The principle established is that if a notice under Section 148 is issued by an authority lacking jurisdiction as per the relevant CBDT circulars, such a notice is liable to be quashed. 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 mentioned. The operative direction was to dispose of the writ petition in terms of the aforementioned precedents.

What were the facts?

The petitioner, Shelly Aggarwal, challenged a notice dated March 30, 2024, issued under Section 148 of the Income Tax Act, 1961, for Assessment Year 2021-2022. The challenge was directed against the Income Tax Officer, Ward 2(3), Faridabad, and other respondents. The petitioner argued that the issuing authority lacked jurisdiction due to a CBDT circular dated March 29, 2022, which purportedly grants exclusive power to the National Faceless Assessment Centre (NFAC) to issue such notices. The revenue did not dispute this contention. The High Court of Punjab and Haryana considered the matter.

What were the issues?

1. Whether the notice dated March 30, 2024, issued under Section 148 of the Income Tax Act, 1961, for AY 2021-2022, is without jurisdiction, in light of the CBDT circular dated March 29, 2022, which allegedly vests exclusive power to issue such notices in the NFAC? (Question of law). Assessee's Contention: The petitioner argued that the issuing authority (Income Tax Officer) had no jurisdiction to issue the Section 148 notice, relying on the CBDT circular dated March 29, 2022, which designates the NFAC with exclusive power. The petitioner cited 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) as covering the present issue. Revenue's Contention: The learned counsel for the Union of India did not dispute the petitioner's contention.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

CWP-8368-2025 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 136 CWP-8368-2025 (O&M) Date of Decision:-24.04.2025 Shelly Aggarwal ....Petitioner Vs. Income Tax Officer, Ward 2 (3), Faridabad & ors. ...Respondents CORAM: HON'BLE MRS. JUSTICE LISA GILL 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 respondents. *** SUDEEPTI SHARMA, J. 1. Challenge in the instant writ petition is to notice dated 30.03.2024 issued under Section 148 of the Income Tax Act, 1961 (for short ‘Act 1961”) and conseuqential proceedings, for AY 2021-2022. 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 2025.04.28 17:49 I attest to the accuracy and integrity of this document

CWP-8368-2025 2 whole records of the case. 5. The petitioner has challenged the notice dated 30.03.2024 issued under Section 148 of the Act, 1961, for AY 2021-2022 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. (LISA GILL) (SUDEEPTI SHARMA) JUDGE JUDGE 24.04.2025

Gaurav Arora

Whether speaking/reasoned : Yes/No Whether reportable : Yes/No Gaurav Arora 2025.04.28 17:49 I attest to the accuracy and integrity of this document

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