Sumit Kumar Bhatia Vs Income Tax Officer and Others — Income Tax | Punjab & Haryana HC (2025)

Sumit Kumar Bhatia Vs Income Tax Officer and Others — Income Tax | Punjab & Haryana HC (2025)

What the court decided

AI extract

Outcome

Writ petition disposed of with a direction to the Appellate Authority to decide the petitioner's appeal in terms of the judgments in Jatinder Singh Bhangu and Jasjit Singh; all pending applications, if any, stand disposed of.

Issue for consideration

Whether the notice dated 22.03.2024 under Section 148, the assessment order dated 22.03.2025 under Section 147, the demand notice and penalty show cause notice dated 29.03.2025 and consequential actions for AY 2022-2023 were validly issued, given the CBDT circular/notification dated 29.03.2022 stating that NFAC has exclusive power to issue Section 148 notices. +1 more

Ratio / Principle

A Co-ordinate Bench of this Court had allowed writ petitions raising the same issue (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.

Key takeaways

Since the petitioner's appeal was pending before the Appellate Authority, the writ petition was disposed of with a direction to the Appellate Authority to decide the appeal in terms of the judgments in Jatinder Singh Bhangu and Jasjit Singh.ratio¶7

Detailed headnote1 paragraphs

Income Tax Act, 1961 - Challenge to notice dated 22.03.2024 under Section 148, assessment order dated 22.03.2025 under Section 147, demand notice and penalty show cause notice dated 29.03.2025 and consequential actions for AY 2022-2023, on the ground that per CBDT circular/notification dated 29.03.2022 the NFAC has exclusive power to issue Section 148 notices - Issue held covered by Co-ordinate Bench judgments in Jatinder Singh Bhangu (CWP No. 15745-2024, decided 19.07.2024) and Jasjit Singh (CWP No. 215092023, decided 29.07.2024), which allowed like writ petitions granting the revenue liberty to follow the statutory procedure - As the petitioner's appeal was pending before the Appellate Authority, writ petition disposed of with direction to the Appellate Authority to decide the appeal in terms of those judgments; pending applications disposed of.

CWP-10853-2025

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IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

150 CWP-10853-2025 (O&M) Date of Decision:-22.04.2025

Sumit Kumar Bhatia

....Petitioner

Vs.

INCOME TAX OFFICER, Ward 7 (1), LUDHIANA & ORS.

...Respondents

CORAM: HON'BLE MRS. JUSTICE LISA GILL HON'BLE MRS. JUSTICE SUDEEPTI SHARMA

Present: Mr. Vishav Bharti Gupta, Advocate

Ms. Mamta Gupta, Advocate, for the petitioner.

Mr. Ranvijay Singh, Sr. Standing counsel for the respondent.

SUDEEPTI SHARMA, J.

Challenge in the present petition is to notice dated 22.03.2024 issued under Section 148 of the Income Tax Act, 1961 (for short ‘Act 1961”) impugned assessment order dated 22.03.2025 issued under Section 147 of the Act, 1961; demand notice and penalty show cause notice dated 29.03.2025 and all consequential actions, for AY 2022-2023.

Learned counsel for the petitioner contends that the issue involved in the above 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 for the petitioner has further submitted that the petitioner has preferred an appeal and the same is pending before the Appellate Authority.

Learned counsel appearing for Union of India has also not

Gaurav Arora 2025.05.01 15:23 I attest to the accuracy and integrity of this document

CWP-10853-2025

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disputed 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 22.03.2024 issued under Section 148 of the Act, 1961; impugned assessment order dated 22.03.2025 issued under Section 147 of the Act, 1961; demand notice and penalty show cause notice dated 29.03.2025 and all consequential actions, for AY 2022-2023, 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.

Since in the present case, the appeal is pending before the Appellate Authority, the writ petition is disposed of with a direction to the Appellate Authority to decide the appeal of the petitioner, in terms of the judgments mentioned above.

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

(LISA GILL) (SUDEEPTI SHARMA) JUDGE JUDGE 22.04.2025 Gaurav Arora Whether speaking/reasoned : Yes/No Whether reportable : Yes/No

Gaurav Arora 2025.05.01 15:23 I attest to the accuracy and integrity of this document