USHA BANSAL,LUDHIANA vs. INCOME TAX OFFICE WARD1 , JAGRAON, INCOME TAX OFFICE, JAGRAON
Facts
The assessee appealed against a re-assessment notice issued by a jurisdictional Assessing Officer under Section 148A(d) for AY 2019-20. The assessee contended that per a Ministry of Finance notification dated 29.03.2022, such notices should have been issued by a Faceless Assessing Officer.
Held
Following precedents from the Punjab & Haryana High Court and an earlier Tribunal decision on identical facts, the Tribunal held that the notice issued by the jurisdictional AO was without jurisdiction. Consequently, the re-assessment order was quashed.
Key Issues
Whether a re-assessment notice issued under Section 148A(d) by a jurisdictional Assessing Officer instead of a Faceless Assessing Officer is valid after the 29.03.2022 notification.
Sections Cited
Section 148, Section 148A(d), Section 148A(1)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DIVISION BENCH, ‘SMC’ CHANDIGARH
Before: SHRI RAJPAL YADAV & SHRI MANOJ KUMAR AGGARWAL
PER RAJ PAL YADAV, VP
The assessee is in appeal before the Tribunal against the order of the ld. Commissioner of Income Tax (Appeals) [in short ‘the CIT (A)’] dated 18.09.2025 passed in assessment year 2019-20.
The assessee has pleaded an additional ground of appeal whereby he has contended that notice u/s 148A(d) of the Act was issued on 31.03.2023 by jurisdictional AO instead of
ITA No.1318/CHD/2025 A.Y.2019-20 2
Faceless AO contemplated in the Notification issued by the Finance Ministry on 29.03.2022. Since this is a pure legal question, therefore, we permit the assessee to raise this additional ground of appeal as per the judgement of Hon'ble Supreme Court in the case of NTPC Ltd. Vs CIT reported in 229 ITR page 383. In support of his contention, he relied upon judgement of Hon'ble Punjab & Haryana High Court in the case of CWP No. 143 of 2026 in the case of Gurprince Singh Mander Vs ITO, Chandigarh and others.
The ld. Ld. CIT DR was unable to controvert this submission of the ld. counsel for the assessee.
We find that an identical issue was decided by this Bench in ITA No.1040/CHD/2024 with C.O. No.41/CHD/2024. The finding of the Tribunal read as under: “6. We have duly considered the rival contentions and gone through the record carefully. Admittedly, notice under Section 148 was issued after the Notification issued by the Ministry of Finance, Government of India on 29.03.2022. The notice under Section 148 has been issued on 29.03.2023 i.e. almost one year from the Notification. Thus, facts of other year are squarely applicable. The issue in dispute is covered by the judgement of Hon'ble jurisdictional High Court which 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
ITA No.1318/CHD/2025 A.Y.2019-20 3 raised by the petitioner is that the impugned notice has been issued by the Jurisdictional 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. 2. 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.
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 Jurisdictional Assessing Officer, is hereby quashed with liberty to the respondents to proceed against the petitioner in accordance with law. 5. The petition is allowed in the above terms.
[DEEPAK SIBAL] JUDGE [ LAPITA BANERJI] 30.04.2025 JUDGE
Respectfully following the judgement of the Hon'ble High Court, we allow the ground of appeal of Cross Objection and hold that notice issued under Section 148 of the Income Tax Act in assessment year 2019-20 is bad in the eyes of law. It was without jurisdiction. Accordingly, re-assessment order is quashed.”
Apart from this order, there are large number of
judgements at the end of the Jurisdictional High Court
including in the case of Gurprince Singh Mander (supra).
ITA No.1318/CHD/2025 A.Y.2019-20 4
Respectfully following the judgement, we quash the re- assessment order because notice u/s 148A(1) was issued on 31.03.2023 as observed by the JAO in the assessment order. Accordingly, this plea of the assessee is allowed and re-assessment order is quashed. The appeal of the assessee is allowed.
In the result, appeal of the assessee is allowed.
Order pronounced on 27.01.2026.
Sd/- Sd/- (MANOJ KUMAR AGGARWAL) (RAJPAL YADAV) ACCOUNTANT MEMBER VICE PRESIDENT “Poonam” आदेश क� ��त�ल�प अ�े�षत/ Copy of the order forwarded to : अपीलाथ�/ The Appellant 1. ��यथ�/ The Respondent 2. आयकर आयु�त/ CIT 3. �वभागीय ��त�न�ध, आयकर अपील�य आ�धकरण, च�डीगढ़/ DR, ITAT, CHANDIGARH 4. गाड� फाईल/ Guard File 5.
सहायक पंजीकार/ Assistant Registrar
