NEILIMA CHUGH vs. INCOME TAX OFFICER WARD 6(1) CHANDIGARH AND OTHERS

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CWP/9526/2025HC Punjab & HaryanaPHHC01053150202503 April 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 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, granting liberty to the revenue to follow the prescribed procedure under the Act and proceed accordingly if advised. The reasoning was based on the petitioner's contention that the issuing authority lacked jurisdiction due to the CBDT circular dated March 29, 2022, which designated the NFAC with exclusive power to issue Section 148 notices. The revenue did not contest this position. The operative direction was to dispose of the 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 following the correct procedure.

What were the facts?

The petitioner, Neilima Chugh, challenged a notice dated April 17, 2023, issued under Section 148 of the Income Tax Act, 1961, and consequential actions for Assessment Year 2019-2020. The challenge was based on the contention that the issuing authority lacked jurisdiction, as per 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 6 (I), Chandigarh, and others, did not dispute the petitioner's submissions regarding the applicability of prior judgments.

What were the issues?

1. Whether the notice dated April 17, 2023, issued under Section 148 of the Income Tax Act, 1961, for AY 2019-2020 is invalid due to lack of jurisdiction of the issuing authority, in light of the CBDT circular dated March 29, 2022, which purportedly grants exclusive power to the NFAC to issue such notices? (Question of law). Assessee's Contentions: The petitioner argued that the issuing authority lacked jurisdiction to issue the Section 148 notice, relying on the CBDT circular dated March 29, 2022, which stipulated that the NFAC has exclusive power in this regard. 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 Contentions: The revenue did not dispute the petitioner's contentions or the applicability of the cited precedents.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

CWP-9526-2025 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 143

CWP-9526-2025 (O&M) Date of Decision:-03.04.2025 Neilima Chugh

....Petitioner Vs. Income Tax Officer, Ward 6 (I), Chd. & ors. ...Respondents CORAM: HON'BLE MR. JUSTICE ARUN PALLI HON'BLE MRS. JUSTICE SUDEEPTI SHARMA Present: Mr. Kartik Bansal, Advocate, for the petitioner. Mr. Vaibhav Gupta, Sr. Standing counsel for the respondent. *** SUDEEPTI SHARMA, J. 1. Challenge in the present petition is to notice dated 17.04.2023 issued under Section 148 of the Income Tax Act, 1961 (for short ‘Act 1961”) and consequential actions, 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 disputed the same. 4. We have heard learned counsel for the parties and perused the Gaurav Arora 2025.04.07 11:16 I attest to the accuracy and integrity of this document

CWP-9526-2025 2 whole records of the case. 5. The petitioner has challenged the notice dated 17.04.2023 issued under Section 148 of the Act, 1961 and consequential actions, 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 03.04.2025

Gaurav Arora

Whether speaking/reasoned : Yes/No Whether reportable : Yes/No Gaurav Arora 2025.04.07 11:16 I attest to the accuracy and integrity of this document

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