Authority: High Court of Punjab and Haryana at Chandigarh
Order Date: 15 May 2025
Case Overview
- Petitioner: Mani Ram Balwant Rai HUF; Respondents: Deputy Commissioner of Income Tax, Central Central 3, Ludhiana & others.
- Petition challenged the notice dated 01‑03‑2025 issued under Section 148 of the Income Tax Act, 1961 for Assessment Year 2016‑2017.
- Petitioner argued that the issuing authority lacked jurisdiction because the CBDT circular dated 29‑03‑2022 expressly reserves the power to issue Section 148 notices to the National Faceless Assessment Centre (NFAC).
- The Court noted that the Union of India’s counsel did not dispute the reliance on the earlier judgments.
Legal Reasoning
- The Court referred to two coordinate‑bench judgments of this Court: Jatinder Singh Bhangu v. Union of India (CWP No. 15745‑2024, decided 19 July 2024) and Jasjit Singh v. Union of India (CWP No. 21509‑2023, decided 29 July 2024).
- Both precedents held that the revenue may follow the procedure laid down under the Act and that the NFAC’s exclusive jurisdiction under the 2022 CBDT circular must be respected.
- Applying those principles, the Court concluded that the notice issued on 01‑03‑2025 was ultra vires.
Final Outcome
- The writ petition is disposed of in accordance with Jatinder Singh Bhangu and Jasjit Singh decisions.
- All pending applications, if any, relating to the Section 148 notice for AY 2016‑17 are also ordered disposed.
Topics: Tax Notice, Judicial Decision