SH. BAGGA SINGH,JALANDHAR vs. DCIT,INT. TAXATION, CHANDIGARH
Income Tax Appellate Tribunal, DIVISION BENCH, ‘B’ CHANDIGARH
Before: SHRI RAJPAL YADAV & SHRI KRINWANT SAHAY
PER RAJ PAL YADAV, VP The assessee is in appeal before the Tribunal against the assessment order dated 14.12.2023 passed under Section 147 read with Section 144 of the Income Tax Act, 1961 in assessment year 2018-19. 2. With the assistance of ld. Representative, we have gone through the record carefully. The assessee was a Non A.Y.2018-19 2
Resident Indian at the relevant time. He did not file his return of income for assessment year 2018-19. The ld. AO has initiated the proceedings under Section 148 of the Income Tax Act vide notice dated 30.03.2022. Thereafter, assessee did not respond in response to the notices under Section 142(1). The AO has prepared a draft assessment order which was sent to the assessee on 10.03.2023. The assessee filed objections against the above draft assessment order before the Dispute Resolution Panel, New Delhi. The DRP has disposed of the objections of the assessee on draft assessment order vide its order dated 08.12.2023. It directed the AO to pass a final assessment order according to the directions of the DRP. The AO, in this way passed the impugned assessment order on 14.12.2023
which is challenged before us.
3. The ld. Counsel for the assessee, at the very outset submitted that after 29.03.2022, the notice under Section 148 ought to have been issued by the Faceless Assessment
Unit and not by the juri ictional AO. The notice had been issued by JAO and therefore, it is not sustainable. The A.Y.2018-19
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re-assessment proceeding deserve to be declared as invalid and consequently, it has to be quashed. In support of his contention, he relied upon a large number of orders passed by the Hon'ble juri ictional High Court.
4. The ld. DR, on the other hand was unable to controvert this submission of the assessee. He only pointed out that the Revenue has challenged the judgments of various High
Courts before the Hon'ble Supreme Court and the issue is pending. He also pointed out that on the last date of hearing, adjournment was granted to the Revenue on this ground.
5. We have duly considered the rival contentions and gone through the record carefully. There is no dispute that notice under Section 148 was issued upon the assessee on 30.03.2022 i.e. just one day after the notification issued by Finance Ministry providing that such notice would be issued by Faceless Unit. This aspect has been considered in a large number of judgements. Hon'ble juri ictional High Court has passed the following order in the case of Shri Aman Batra Vs
A.Y.2018-19
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DCIT CWP No. 11870 of 2025. The judgement of the Hon'ble
High Court dated 30.04.2025 read as under :
“DEEPAK SIBAL, J. (Oral)
Challenge made through the instant petition is to the notice dated 01.03.2025 (Annexure P-l) issued to the petitioner by the respondents tinder Section 148 of the Income Tax Act, 1961. The primary ground of challenge raised by the petitioner is that the impugned notice has been issued by the Juri ictional Assessing Officer which could not have been done because in terms of the notification dated 29.03.2022 (Annexure P-2), issued by the Ministry of Finance. Government of India, the impugned notice could have been issued only by way of faceless assessment.
In support of his afore submission, learned counsel for the petitioner places reliance on the following two judgments of this Court:- i. CWP-15745-2024, titled Jatinder Singh Bhangu Vs. Union of India and others, decided on 19.07.2024; and ii. CWP-21509-2023, titled Jasjit Singh Vs. Union of India and others, decided on 29.07.2024. 3. Learned counsel for the respondents does not dispute the fact that the case of the petitioner is covered in his favour by the law laid down through the aforesaid two judgments rendered by two different co-ordinate Benches of this Court in Jatinder Singh Bhangu and Jasjit Singh’s case (supra). . 4. In the light of the above, in terms of the law laid down in Jatinder Singh Bhangu's and Jasjit Singh's cases (supra) the impugned notice dated 01.03.2025 (Annexure P-1) issued by the Juri ictional Assessing Officer, is hereby quashed with liberty to the respondents to proceed against the petitioner in accordance with law.
The petition is allowed in the above terms.
[DEEPAK SIBAL]
JUDGE
[ LAPITA BANERJI]
30.04.2025
JUDGE
A.Y.2018-19
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Respectfully following the judgement of the Hon'ble High Court, the assessment order is quashed and appeal of the assessee is allowed. 7. In the result, appeal of the assessee is allowed. Order pronounced on 13.05.2025. (KRINWANT SAHAY) VICE PRESIDENT
“Poonam”
आदेश क ितिलिप अ ेिषत/ Copy of the order forwarded to :
अपीलाथ/ The Appellant 2. यथ/ The Respondent 3. आयकर आयु/ CIT 4. िवभागीय ितिनिध, आयकर अपीलीय आिधकरण, चडीगढ़/ DR, ITAT, CHANDIGARH 5. गाड फाईल/ Guard File
आदेशानुसार/ By order,
सहायक पंजीकार/