Disposed¶27

Orchids Diamond Tools Private Limited v. Assistant Commissioner of Income Tax and Ors.

Punjab & Haryana HC13 May 2025CWP/11687/2025

Case brief

AI extract

What is this about?

Section 148 notice dated 22.03.2025; AY 2018-2019; jurisdiction of Issuing Authority versus NFAC exclusive power; CBDT circular/notification dated 29.03.2022; coverage with Jatinder Singh Bhangu (CWP No. 15745-2024, decided 19.07.2024) and Jasjit Singh (decided 29.07.2024); writ petition disposed of in terms thereof; liberty to revenue to follow procedure under Act, 1961; Orchids Diamond Tools Pvt. Ltd. v. Asstt. Commissioner of Income, Central Circle I, Faridabad; High Court of Punjab and Haryana; Sudeepti Sharma, J.; Lisa Gill, J.; CWP-11687-2025 (O&M).

What did the court decide?

Writ petition disposed of in terms of the Co-ordinate Bench decisions in Jatinder Singh Bhangu (decided 19.07.2024) and Jasjit Singh (decided 29.07.2024). ¶27

Orchids Diamond Tools Private Limited Vs Assistant… — Income Tax | Punjab & Haryana HC (2025)

What the court decided

AI extract

Outcome

Writ petition disposed of in terms of the Co-ordinate Bench decisions in Jatinder Singh Bhangu (decided 19.07.2024) and Jasjit Singh (decided 29.07.2024).

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Issue for consideration

Whether the notice dated 22.03.2025 issued under Section 148 of the Income Tax Act, 1961 and the consequential actions thereon for AY 2018-2019 were validly issued, given the petitioner's contention that the Issuing Authority had no jurisdiction in view of the CBDT circular/notification dated 29.03.2022 vesting exclusive power to issue Section 148 notices in the NFAC. +1 more

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Ratio / Principle

The issue raised in the present writ petition is covered by the Co-ordinate Bench decisions in Jatinder Singh Bhangu (CWP No. 15745-2024, decided 19.07.2024) and Jasjit Singh (decided 29.07.2024), in which writ petitions on the same issue were allowed by granting liberty to the revenue to follow the procedure laid down under the Act, 1961 and proceed accordingly, if so advised; learned counsel appearing for Union of India did not dispute the coverage.

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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¶27

Detailed headnote1 paragraphs

Punjab & Haryana High Court (Coram: Lisa Gill and Sudeepti Sharma, JJ.; opinion by Sudeepti Sharma, J.) disposes of CWP-11687-2025 (O&M) filed by Orchids Diamond Tools Pvt. Ltd. challenging notice dated 22.03.2025 issued under Section 148 of the Income Tax Act, 1961 and all consequential actions for AY 2018-2019, on the ground that the Issuing Authority had no jurisdiction, the CBDT circular/notification dated 29.03.2022 having specifically enumerated that the NFAC has exclusive power to issue notices under Section 148. Holding the issue covered by the Co-ordinate Bench decisions in Jatinder Singh Bhangu v. Union of India and others (CWP No. 15745-2024 and connected matter, decided 19.07.2024) and Jasjit Singh v. Union of India and others (CWP No. 215092023 [recte 21509-2023] and other connected matters, decided 29.07.2024) — a coverage not disputed by counsel for the Union of India — the Court disposed of the writ petition in terms of those decisions, whereby such writ petitions were allowed with liberty to the revenue to follow the procedure laid down under the Act, 1961 and proceed accordingly, if so advised.

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CWP-11687-2025

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IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

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140

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CWP-11687-2025 (O&M) Date of Decision:-13.05.2025

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Orchids Diamond Tools Pvt. Ltd.

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....Petitioner

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Vs.

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Asstt. Commissioner of Income, Central Circle I, Faridabad & ors.

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...Respondents

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

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Present: Mr. Nikhil Goyal and Mr. Rana Gurtej Singh, Advocates, for the petitioner.

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Mr.Varun Issar, Sr. Standing counsel with Ms. Pridhi Sandhu, Jr. Standing counsel for the respondent.

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SUDEEPTI SHARMA, J.

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Challenge in the present petition is to notice dated 22.03.2025 issued under Section 148 of the Income Tax Act, 1961 (for short ‘Act 1961”) and all consequential actions, for AY 2018-2019.

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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 .

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

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

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The petitioner has challenged the notice dated 22.03.2025 issued

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Gaurav Arora 2025.05.16 16:39 I attest to the accuracy and integrity of this document

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CWP-11687-2025

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under Section 148 of the Act, 1961 and all consequential actions, for AY 20182019 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.

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A Co-ordinate Bench of this Court in Jatinder Singh Bhangu’s case

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(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.

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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

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

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(LISA GILL) (SUDEEPTI SHARMA) JUDGE JUDGE 13.05.2025 Gaurav Arora Whether speaking/reasoned : Yes/No Whether reportable : Yes/No

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Gaurav Arora 2025.05.16 16:39 I attest to the accuracy and integrity of this document

Orchids Diamond Tools Private Limited v. Assistant Commissioner of Income Tax and Ors.

Case brief

What is this about?

What did the court decide?

Orchids Diamond Tools Private Limited v. Assistant Commissioner of Income Tax and Ors.

Case brief

What is this about?

What did the court decide?

Why is it important?

What the court decided

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