JATIN MOHAN SETH vs. INCOME TAX OFFICER AND OTHERS

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CWP/9565/2025HC Punjab & HaryanaPHHC01053205202504 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 writ petitions on similar issues, granting liberty to the revenue to follow the procedure laid down under the Act, 1961, and proceed accordingly if so advised. The core reasoning was that the issuing authority, in this instance, did not have the exclusive jurisdiction as purportedly mandated by the CBDT circular. The ratio decidendi is that notices issued under Section 148 by authorities other than the designated NFAC, in contravention of CBDT directives, are liable to be quashed. The operative direction was to dispose of the petition in line with the precedent, implying the quashing of the impugned notice, with liberty to the revenue to re-initiate proceedings correctly.

What were the facts?

The petitioner, Jatin Mohan Seth, challenged a notice dated March 26, 2025, issued under Section 148 of the Income Tax Act, 1961, and consequential actions for Assessment Year 2021-2022. The challenge was based on the contention that the issuing authority lacked jurisdiction due to a CBDT circular dated March 29, 2022, which purportedly vested exclusive power to issue such notices with the National Faceless Assessment Centre (NFAC). The respondent-department, represented by the Income Tax Officer, Ward 2(1), Amritsar, and others, did not dispute the petitioner's submission regarding the applicability of prior judgments.

What were the issues?

1. Whether the notice dated March 26, 2025, issued under Section 148 of the Income Tax Act, 1961, for AY 2021-2022, is without jurisdiction, considering the CBDT circular dated March 29, 2022, which allegedly grants exclusive power to the NFAC to issue such notices? (Question of law). Assessee's contention: The issuing authority lacked jurisdiction to issue the Section 148 notice due to the CBDT circular dated March 29, 2022, which specifies that the NFAC has exclusive power. The petitioner relies on 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). Revenue's contention: The revenue did not dispute the petitioner's submission regarding the applicability of the cited judgments.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

CWP-9565-2025 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 110 CWP-9565-2025 (O&M) Date of Decision:-04.04.2025 Jatin Mohan Seth ....Petitioner Vs. Income Tax Officer, Ward 2 (1), Amritsar & ors. ...Respondents CORAM: HON'BLE MR. JUSTICE ARUN PALLI HON'BLE MRS. JUSTICE SUDEEPTI SHARMA Present: Mr. Umang Goyal, Advocate for the petitioner Mr. Saurabh Kapoor, Sr. Standing counsel with Ms. Muskan Gupta, Advocate for the respondent-department. *** SUDEEPTI SHARMA, J. 1. Challenge in the present petition is to notice dated 26.03.2025 issued under Section 148 of the Income Tax Act, 1961 (for short ‘Act 1961”) and consequential actions, 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 whole records of the case. Gaurav Arora 2025.04.07 11:16 I attest to the accuracy and integrity of this document

CWP-9565-2025 2 5. The petitioner has challenged the notice dated 26.03.2025 issued under Section 148 of the Act, 1961 and consequential actions, for AY 2021-2022, 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 04.04.2025

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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