Garhwal Sabha Regd Vs Deputy Commissioner of Income Tax… — Income Tax | Punjab & Haryana HC (2025)

Garhwal Sabha Regd Vs Deputy Commissioner of Income Tax… — Income Tax | Punjab & Haryana HC (2025)

What the court decided

AI extract

Outcome

Writ petition disposed of in terms of the coordinate Bench decisions in Jatinder Singh Bhangu and Jasjit Singh (which had allowed such petitions with liberty to the revenue to follow the procedure laid down under the 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 Section 148 notice dated 31.03.2024, the assessment order dated 28.02.2025 under Sections 147/144B, the Section 156 demand notice and the Section 270A penalty show cause notice for AY 2019-2020, given the CBDT circular/notification dated 29.03.2022 vesting exclusive power to issue Section 148 notices in the NFAC. +1 more

Court's answer

In view of the above, the present writ petition is disposed of in terms of Jatinder Singh Bhangu (decided 19.07.2024) and Jasjit Singh (decided 29.07.2024), thereby resolving the jurisdictional challenge to the impugned tax notices/orders for AY 2019-2020.

Ratio / Principle

A Co-ordinate Bench of this Court had allowed writ petitions on the same issue in Jatinder Singh Bhangu and Jasjit Singh, granting liberty to the revenue to follow the procedure laid down under the Act, 1961 and proceed accordingly, if so advised; learned counsel for the Union of India did not dispute that the present petition was covered by those decisions.

Detailed headnote1 paragraphs

Punjab & Haryana High Court, CWP-10287-2025, decided 09.04.2025 (Arun Palli & Sudeepti Sharma JJ.; judgment by Sudeepti Sharma, J.) — Garhwal Sabha Regd. v. Deputy Commissioner of Income Tax & Others: Writ petition challenging (i) notice dated 31.03.2024 under Section 148, (ii) assessment order dated 28.02.2025 under Section 147 read with Section 144B, (iii) notice of demand dated 28.02.2025 under Section 156 and (iv) penalty show cause notice dated 28.02.2025 under Section 270A, all of the Income Tax Act, 1961, for AY 2019-2020, 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 to issue Section 148 notices in the NFAC. Counsel for the Union of India did not dispute that the case was covered by the coordinate Bench decisions in Jatinder Singh Bhangu (CWP No. 15745-2024, decided 19.07.2024) and Jasjit Singh (CWP No. 21509-2023, decided 29.07.2024), in which writ petitions on the same issue were allowed with liberty to the revenue to follow the statutory procedure, if so advised. Petition disposed of in terms of those decisions; pending applications disposed.

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IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

143

CWP-10287-2025 Date of Decision:-09.04.2025

GARHWAL SABHA REGD

....Petitioner

Vs.

DEPUTY COMMISSIONER OF INCOME TAX AND OTHERS

...Respondents

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

Present: Mr. B.M. Monga, Mr. Rohit Kaura and Mr. Rajiv Sharma, Advocates, for the petitioner.

Mr. Vaibhav Gupta, Standing counsel for the respondent. ***

SUDEEPTI SHARMA, J.

Challenge in the instant writ petition is to notice dated 31.03.2024 issued under Section 148 of the Income Tax Act, 1961 (for short “Act 1961”) impugned assessment order dated 28.02.2025 issued under Section 147 read with Section 144B of the Act, 1961; notice of demand dated 28.02.2025 issued under Section 156 of the Act, 1961; penalty show cause notice dated 28.02.2025 issued under Section 270A of the Act, 1961 and all consequential actions, for AY 20192020.

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

Gaurav Arora 2025.04.11 14:25 I attest to the accuracy and integrity of this document

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the same.

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

The petitioner has challenged the notice dated 31.03.2024 issued under Section 148 of the Income Tax Act, 1961 (for short “Act 1961”) impugned assessment order dated 28.02.2025 issued under Section 147 read with Section 144B of the Act, 1961; notice of demand dated 28.02.2025 issued under Section 156 of the Act, 1961; penalty show cause notice dated 28.02.2025 issued under Section 270A of the Act, 1961 and all consequential actions, for AY 2019-2020, 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 09.04.2025 Gaurav Arora Whether speaking/reasoned : Yes/No Whether reportable : Yes/No

Gaurav Arora 2025.04.11 14:25 I attest to the accuracy and integrity of this document