SURABHI MITTAL vs. ASSISTANT COMMISSIONER OF INCOME TAX AND OTHERS

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CWP/9993/2025HC Punjab & HaryanaPHHC01055735202507 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's case and Jasjit Singh's case. In those cited cases, a Co-ordinate Bench had allowed similar writ petitions on the same issue. The reasoning was that the issuing authority lacked jurisdiction to issue the Section 148 notice due to the CBDT circular/notification dated 29.03.2022. The principle established is that if a notice under Section 148 is issued by an authority without the requisite jurisdiction as per the prevailing circulars or notifications, such a notice is liable to be quashed. The operative direction was to dispose of the present writ petition in terms of the aforementioned judgments, which typically involved granting liberty to the revenue to follow the prescribed procedure if so advised.

What were the facts?

The petitioner, Surabhi Mittal, challenged a notice dated March 22, 2025, issued under Section 148 of the Income Tax Act, 1961, for Assessment Year 2017-2018. The petitioner also challenged all consequential actions stemming from this notice. The challenge was based on the assertion that the issuing authority lacked jurisdiction to issue the notice. This was due to a CBDT circular/notification dated March 29, 2022, which allegedly vested exclusive power to issue Section 148 notices with the National Faceless Assessment Centre (NFAC). The revenue, represented by the Assistant Commissioner of Income Tax, Central Circle-I, Faridabad, and others, was the respondent.

What were the issues?

1. Whether the notice dated 22.03.2025 issued under Section 148 of the Income Tax Act, 1961, for AY 2017-2018 is without jurisdiction, in light of the CBDT circular/notification dated 29.03.2022, 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/notification dated 29.03.2022, which allegedly states that the NFAC has exclusive power. The petitioner cited the judgments of a Co-ordinate Bench of the High Court 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 learned counsel appearing for the Union of India did not dispute the petitioner's contentions.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

CWP-9993-2025 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 182

CWP-9993-2025 (O&M) Date of Decision:-07.04.2025 Surabhi 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 2017-2018. 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 2025.04.09 10:25 I attest to the accuracy and integrity of this document

CWP-9993-2025 2 under Section 148 of the Act, 1961 and all consequential actions, for AY 2017- 2018 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 2025.04.09 10:25 I attest to the accuracy and integrity of this document

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