SOMESH MITTAL vs. ASSISTANT COMMISSIONER OF INCOME TAX AND OTHERS

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CWP/9838/2025HC Punjab & HaryanaPHHC01054219202507 April 2025Bench: MR. JUSTICE ARUN PALLI,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 vs. Union of India and Jasjit Singh vs. Union of India. In those prior cases, a Co-ordinate Bench had allowed similar writ petitions on the same issue. The reasoning was that the issuing authority lacked jurisdiction due to the CBDT circular dated 29.03.2022, which designated the NFAC with exclusive power to issue notices under Section 148. The Court granted liberty to the revenue to follow the procedure laid down under the Act, 1961, and proceed accordingly, if so advised. The operative direction was to quash the impugned notice and allow the revenue to initiate fresh proceedings if they chose to do so, following the correct procedure.

What were the facts?

The petitioner, Somesh Mittal, challenged a notice dated 22.03.2025 issued under Section 148 of the Income Tax Act, 1961, for Assessment Year 2016-2017. The challenge was based on the contention that the issuing authority lacked jurisdiction due to a CBDT circular dated 29.03.2022, which purportedly granted exclusive power to the National Faceless Assessment Centre (NFAC) to issue such notices. The revenue, represented by its standing counsel, did not dispute the petitioner's contention regarding the applicability of prior judgments.

What were the issues?

1. Whether the notice dated 22.03.2025 issued under Section 148 of the Income Tax Act, 1961, for AY 2016-2017 is without jurisdiction, in light of the CBDT circular dated 29.03.2022, which allegedly vests exclusive power in the NFAC to issue such notices? Assessee's Contention: The petitioner argued that the issuing authority lacked jurisdiction to issue the notice under Section 148, relying on a CBDT circular dated 29.03.2022 that purportedly grants exclusive power to the NFAC. The petitioner cited the judgments in Jatinder Singh Bhangu vs. Union of India and Jasjit Singh vs. Union of India as covering the present issue. Revenue's Contention: The revenue did not dispute the petitioner's contention and acknowledged that the issue was covered by the aforementioned judgments.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

CWP-9838-2025 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 146

CWP-9838-2025 (O&M) Date of Decision:-07.04.2025 Somesh Mittal

....Petitioner Vs. Asstt. Commissioner of Income Tax, Central Cirlce-I, Faridabad & ors. ...Respondents CORAM: HON'BLE MR. JUSTICE ARUN PALLI HON'BLE MRS. JUSTICE SUDEEPTI SHARMA Present: Mr. Nikhil Goyal and Mr. Rana Gurtej Singh, Advocates, for the petitioner. Mr. Vaibhav Gupta, Standing counsel for the respondent. *** SUDEEPTI SHARMA, J. 1. Challenge in the present petition is to notice dated 22.03.2025 issued under Section 148 of the Income Tax Act, 1961 (for short ‘Act 1961”) and all consequential actions, for AY 2016-2017. 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. 5. The petitioner has challenged the notice dated 22.03.2025 issued Gaurav Arora 2025.04.08 18:47 I attest to the accuracy and integrity of this document

CWP-9838-2025 2 under Section 148 of the Act, 1961 and all consequential actions, for AY 2016- 2017 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 07.04.2025

Gaurav Arora Whether speaking/reasoned : Yes/No Whether reportable : Yes/No Gaurav Arora 2025.04.08 18:47 I attest to the accuracy and integrity of this document

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