Jeet Aggarwal Vs Union of India and Others — Income Tax | Punjab & Haryana HC (2025)

Jeet Aggarwal Vs Union of India and Others — Income Tax | Punjab & Haryana HC (2025)

What the court decided

AI extract

Outcome

Writ petition disposed of in terms of Jatinder Singh Bhangu (CWP No. 15745-2024, decided 19.07.2024) and Jasjit Singh (CWP No. 215092023, decided 29.07.2024), i.e., on the same terms as those coordinate-bench decisions which allowed the petitions and granted liberty to the revenue to follow the procedure laid down under the Income Tax Act, 1961 and proceed accordingly, if so advised; all pending applications, if any, also stand disposed of.

Issue for consideration

Whether the Issuing Authority had jurisdiction to issue the notice under Section 148 of the Income Tax Act, 1961 and to pass the assessment, demand and penalty actions for AY 2019-2020, in view of the CBDT circular/notification dated 29.03.2022 vesting exclusive power in the NFAC to issue Section 148 notices.

Court's answer

The issue raised in the writ petition - want of jurisdiction of the Issuing Authority in view of the CBDT circular/notification dated 29.03.2022 conferring exclusive power on the NFAC to issue Section 148 notices - is covered by the Co-ordinate Bench decisions in Jatinder Singh Bhangu (CWP No. 15745-2024, decided 19.07.2024) and Jasjit Singh (CWP No. 215092023, decided 29.07.2024); learned counsel for the Union of India did not dispute this.

Ratio / Principle

The Co-ordinate Bench had allowed writ petitions on the same issue while granting liberty to the revenue to follow the procedure laid down under the Act, 1961 and proceed accordingly, if so advised.

Key takeaways

The present writ petition is disposed of in terms of Jatinder Singh Bhangu (decided 19.07.2024) and Jasjit Singh (decided 29.07.2024).ratio¶¶26

Detailed headnote1 paragraphs

Punjab and Haryana High Court (Arun Palli and Sudeepti Sharma, JJ.; judgment by Sudeepti Sharma, J.) disposes of Jeet Aggarwal's writ petition (CWP-10071-2025 O&M) challenging, for AY 2019-2020, the notice dated 21.04.2023 under Section 148 of the Income Tax Act, 1961, the notice dated 29.03.2023 under Section 148(b), the order dated 21.04.2023 under Section 148A(d), the assessment order dated 11.03.2025 under Section 147, the demand notice and penalty notice both dated 11.03.2025, and all consequential actions, on the ground that the Issuing Authority had no jurisdiction, the CBDT circular/notification dated 29.03.2022 having vested exclusive power in the NFAC to issue Section 148 notices. Holding the issue covered by the Co-ordinate Bench decisions in Jatinder Singh Bhangu (CWP No. 15745-2024, decided 19.07.2024) and Jasjit Singh (CWP No. 215092023, decided 29.07.2024), which allowed writ petitions on the same issue and which the Union of India did not dispute, the Court disposed of the petition in terms of those decisions, with liberty to the revenue to follow the procedure laid down under the 1961 Act and proceed accordingly, if so advised; pending applications, if any, were also disposed of.

CWP-10071

1

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

144

CWP-10071-2025 (O&M) Date of Decision:-08.04.2025

Jeet Aggarwal

....Petitioner

Vs.

Union of India & ors.

...Respondents

CORAM: HON'BLE MR. JUSTICE ARUN PALLI HON'BLE MRS. JUSTICE SUDEEPTI SHARMA

Present: Mr. Satyam Aneja, Advocate &

Mr. Reshabh Bajaj, Advocates, for the petitioner.

Ms. Gauri Neo Rampal, Sr. Standing counsel with Mr. V. Vedika Rao, Advocate, for the respondent.

SUDEEPTI SHARMA, J.

Challenge in the instant writ petition is to notice dated 21.04.2023 issued under Section 148 of the Income Tax Act, 1961 (for short “Act 1961”); impugned assessment order dated 11.03.2025 issued under Section 147 of the Act, 1961; notice dated 29.03.2023 issued under Section 148 (b) of the Act, 1961; order dated 21.04.2023 issued under Section 148 A(d) of the Act, 1961; demand notice dated 11.03.2025; penalty notice dated 11.03.2025 and all consequential actions, for AY 2019-2020.

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. 215092023 and other connected matters), decided on 29.07.2024 .

Learned counsel appearing for Union of India has also not disputed the same.

Gaurav Arora 2025.04.09 10:44 I attest to the accuracy and integrity of this document

CWP-10071

2

We have heard learned counsel for the parties and perused the whole records of the case.

The petitioner has challenged the notice dated 21.04.2023 issued under Section 148 of the Act, 1961; impugned assessment order dated 11.03.2025 issued under Section 147 of the Act, 1961; notice dated 29.03.2023 issued under Section 148 (b) of the Act, 1961; order dated 21.04.2023 issued under Section 148 A(d) of the Act, 1961; demand notice dated 11.03.2025; penalty notice dated 11.03.2025 and all consequential actions, for AY 20192020, 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.

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.

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

All the pending applications, if any, also stand disposed of.

(ARUN PALLI) (SUDEEPTI SHARMA) JUDGE JUDGE 08.04.2025 Gaurav Arora

Whether speaking/reasoned : Yes/No Whether reportable : Yes/No

Gaurav Arora 2025.04.09 10:44 I attest to the accuracy and integrity of this document