RANJIT SINGH GHOTRA vs. INCOME TAX OFFICER AND OTHERS

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CWP/9058/2025HC Punjab & HaryanaPHHC01050803202528 March 2025Bench: MR. JUSTICE ARUN PALLI,MRS. JUSTICE SUDEEPTI SHARMA2 pages
AI SummaryRemanded

What did the High Court hold?

The High Court held that the issue raised by the petitioner was covered by previous 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). In those cases, writ petitions were allowed on similar grounds, with liberty granted to the revenue to follow the prescribed procedure under the Act, 1961, and proceed accordingly if advised. Consequently, the present writ petition was disposed of in terms of these earlier judgments. The operative direction was to dispose of the writ petition in terms of the cited precedents, implying that the impugned notices and orders were set aside, with liberty to the revenue to re-initiate proceedings following the correct procedure.

What were the facts?

The petitioner, Ranjit Singh Ghotra, challenged a notice dated 07.04.2023 under Section 148 of the Income Tax Act, 1961, an assessment order dated 19.03.2025 under Section 147 read with Section 144, a demand notice dated 19.03.2025 under Section 156, and a penalty notice dated 19.03.2025 under Section 270(A) for Assessment Year 2019-2020. The challenge was based on the contention that the issuing authority lacked jurisdiction due to a CBDT circular dated 29.03.2022, which vested exclusive power to issue Section 148 notices in the National Faceless Assessment Centre (NFAC). The revenue did not dispute this contention.

What were the issues?

1. Whether the notice dated 07.04.2023 issued under Section 148 of the Income Tax Act, 1961, the assessment order dated 19.03.2025 under Section 147 read with Section 144, the demand notice dated 19.03.2025 under Section 156, and the penalty notice dated 19.03.2025 under Section 270(A) for AY 2019-2020 are invalid due to lack of jurisdiction by the issuing authority. Assessee's contention: The issuing authority lacked jurisdiction to issue the impugned notices and orders, citing the CBDT circular dated 29.03.2022, which stipulated that the NFAC has exclusive power to issue notices under Section 148 of the Act, 1961. Revenue's contention: The revenue did not dispute the assessee's contention.

Which sections of the Income-tax Act were involved?

Section 148,Section 147,Section 144,Section 156,Section 270(A)

AI-generated summary — verify with the full judgment below

CWP-9058-2025 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 208 CWP-9058-2025 (O&M) Date of Decision:-28.03.2025 Ranjit Singh Ghotra ....Petitioner Vs. Income Tax Officer, Dasuya, District Hoshiarpur & ors. ...Respondents CORAM: HON'BLE MR. JUSTICE ARUN PALLI HON'BLE MRS. JUSTICE SUDEEPTI SHARMA Present: Mr. Rishabh Kapoor, Advocate, for the petitioner Mr. Ranvijay Singh, Sr. Standing counsel for the respondent-department. *** SUDEEPTI SHARMA, J. 1. Challenge in the instant writ petition is to notice dated 07.04.2023 issued under Section 148 of the Income Tax Act, 1961 (for short ‘Act 1961”); assessment order dated 19.03.2025 issued under Section 147 read with Section 144 of the Act, 1961; demand notice dated 19.03.2025 issued under Section 156 of the Act, 1961 and conseuqential penalty notice dated 19.03.2025 issued under Section 270(A) of Act, 1961, for AY 2019- 2020. 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 Gaurav Arora 2025.04.04 12:06 I attest to the accuracy and integrity of this document

CWP-9058-2025 2 disputed the same. 4. We have heard learned counsel for the parties and perused the whole records of the case. 5. The petitioner has challenged the notice dated 07.04.2023 issued under Section 148 of the Act, 1961; assessment order dated 19.03.2025 issued under Section 147 read with Section 144 of the Act, 1961; demand notice dated 19.03.2025 issued under Section 156 of the Act, 1961 and conseuqential penalty notice dated 19.03.2025 issued under Section 270(A) of Act, 1961, for AY 2019-2020, 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 2025.04.04 12:06 I attest to the accuracy and integrity of this document

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