RAKSON INTERNATIONAL vs. INCOME TAX OFFICER AND OTHERS

PDF · subscribers
CWP/8810/2025HC Punjab & HaryanaPHHC01049497202528 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's case (decided on 19.07.2024) and Jasjit Singh's case (decided on 29.07.2024). 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 advised. The reasoning was based on the established principle that the NFAC has exclusive jurisdiction to issue Section 148 notices as per the CBDT circular. The operative direction was to dispose of the writ petition in line with the precedents, implying the quashing of the impugned notice and consequential actions, with liberty to the revenue to re-initiate proceedings correctly.

What were the facts?

The petitioner, Rakson International, filed a writ petition challenging a notice dated 28.08.2024 issued under Section 148 of the Income Tax Act, 1961, and all consequential actions for Assessment Year 2018-2019. The petitioner contended that the issuing authority lacked jurisdiction due to a CBDT circular dated 29.03.2022, which vests exclusive power to issue Section 148 notices with the National Faceless Assessment Centre (NFAC). The revenue did not dispute this contention. The High Court had previously decided similar issues in the cases of Jatinder Singh Bhangu and Jasjit Singh.

What were the issues?

1. Whether the notice dated 28.08.2024, issued under Section 148 of the Income Tax Act, 1961, for AY 2018-2019, is invalid on the ground that the issuing authority lacked jurisdiction in light of the CBDT circular dated 29.03.2022. 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 specifies that the NFAC has exclusive power to issue such notices. Revenue's contention: The revenue did not dispute the assessee's contention.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

CWP-8810-2025 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 160 CWP-8810-2025 (O&M) Date of Decision:-28.03.2025 Rakson International ....Petitioner Vs. Income Tax Officer, Ward 4 (1), Ludhiana & 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. Ranvijay Singh, Sr. Standing counsel for the respondent. *** SUDEEPTI SHARMA, J. 1. Challenge in the instant writ petition is to notice dated 28.08.2024 issued under Section 148 of the Income Tax Act, 1961 (for short ‘Act 1961”) and all consequential actions, for AY 2018-2019. 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 2025.04.03 15:21 I attest to the accuracy and integrity of this document

CWP-8810-2025 2 whole records of the case. 5. The petitioner has challenged the notice dated 28.08.2024 issued under Section 148 of the Act, 1961 and all consequential actions, for AY 2018-2019, 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 28.03.2025

Gaurav Arora

Whether speaking/reasoned : Yes/No Whether reportable : Yes/No Gaurav Arora 2025.04.03 15:21 I attest to the accuracy and integrity of this document

More judgments on Section 148

All 35,022 judgments and leading authorities on Section 148 →

Recent GST High Court judgments

Search GST case law →