DEEPAK SURI vs. INCOME TAX OFFICER

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CWP/9982/2025HC Punjab & HaryanaPHHC01054825202507 April 2025Bench: MR. JUSTICE ARUN PALLI,MRS. JUSTICE SUDEEPTI SHARMA2 pages
AI SummaryAllowed

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 cases, a co-ordinate bench had allowed similar writ petitions on the same issue. The principle established is that if a CBDT circular vests exclusive power for issuing Section 148 notices with a specific authority (like NFAC), then other authorities cannot exercise this power. The revenue was granted liberty 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 consequential proceedings. No issue was expressly left undecided.

What were the facts?

The petitioner, Deepak Suri, challenged a notice dated March 27, 2025, issued under Section 148 of the Income Tax Act, 1961, for Assessment Year 2021-2022, along with consequential proceedings. The challenge was directed against the Income Tax Officer, Ward 2(1), REAC, Chandigarh. The petitioner argued that the issuing authority lacked jurisdiction due to a CBDT circular dated March 29, 2022, which purportedly grants exclusive power to the National Faceless Assessment Centre (NFAC) to issue such notices. The revenue did not dispute this contention.

What were the issues?

1. Whether the notice dated March 27, 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 vests exclusive power to issue such notices with the NFAC? (Question of law) Assessee's Contention: The petitioner argued that the Income Tax Officer lacked jurisdiction to issue the notice under Section 148, relying on the CBDT circular dated March 29, 2022, which allegedly states that the NFAC has exclusive power. The petitioner cited the judgments in Jatinder Singh Bhangu vs. Union of India and Jasjit Singh vs. Union of India as precedents. Revenue's Contention: The learned counsel for the Union of India did not dispute the petitioner's contention.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

CWP-9982-2025 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 179 CWP-9982-2025 (O&M) Date of Decision:-07.04.2025 Deepak Suri ....Petitioner vs. Income Tax Officer, Ward 2 (1), REAC, Chandigarh ...Respondent CORAM: HON'BLE MR. JUSTICE ARUN PALLI HON'BLE MRS. JUSTICE SUDEEPTI SHARMA Present: Ms. Abhinav Narang, Advocate for the petitioner Mr. Vaibhav Gupta, Standing counsel for the respondent. *** SUDEEPTI SHARMA, J. 1. Challenge in the present writ petition is to notice dated 27.03.2025 issued under Section 148 of the Income Tax Act, 1961 (for short ‘Act 1961”) for AY 2021-2022 along with consequential proceedings. 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 2025.04.09 10:25 I attest to the accuracy and integrity of this document

CWP-9982-2025 2 whole records of the case. 5. The petitioner has challenged the notice dated 27.03.2025 issued under Section 148 of the Act, 1961 for AY 2021-2022 along with consequential proceedings issued by respondent, on the ground that he 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 2025.04.09 10:25 I attest to the accuracy and integrity of this document

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