Disposed¶28

Satbir Singh v. Union of India and Others

Punjab & Haryana HC9 May 2025CWP/13164/2025

Case brief

AI extract

What is this about?

Faceless assessment jurisdiction; Section 148 Income Tax Act 1961 notice issued despite CBDT circular/notification dated 29.03.2022 vesting exclusive power in NFAC; Sections 147, 156, 274 consequences for AY 2020-2021; Sections 151A, 144B, 148A faceless assessment scheme; writ disposed following Co-ordinate Bench decisions in Jatinder Singh Bhangu (CWP No. 15745-2024, 19.07.2024) and Jasjit Singh (CWP No. 21509-2023, 29.07.2024); Satbir Singh v. Union of India; High Court of Punjab and Haryana at Chandigarh; appeal pending before Appellate Authority.

What did the court decide?

Writ petition 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 pending applications, if any, stand disposed of accordingly. ¶28

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

What the court decided

AI extract

Outcome

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Issue for consideration

Whether the Issuing Authority had jurisdiction to issue notice dated 29.03.2024 under Section 148 of the Income Tax Act, 1961 (and the consequential assessment, demand and penalty actions) for AY 2020-2021, in view of the CBDT circular/notification dated 29.03.2022 vesting exclusive power in NFAC to issue Section 148 notices.

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Court's answer

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 (CWP No. 21509-2023, decided 29.07.2024), which allowed writ petitions on the same issue; learned counsel for the Union of India did not dispute this.

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Ratio / Principle

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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Key takeaways

All the pending applications, if any, also stand disposed of accordingly.ratio¶30

Detailed headnote1 paragraphs

Punjab & Haryana High Court (CWP-13164-2025, decided May 09, 2025) disposes of a writ petition by Satbir Singh against Union of India and others challenging: notice dated 29.03.2024 under Section 148 of the Income Tax Act, 1961; assessment order dated 28.03.2025 under Section 147; demand notice dated 28.03.2025 under Section 156; penalty show cause notice dated 29.03.2025 under Section 274; and all consequential actions, for AY 2020-2021. The challenge rests on the ground that the Issuing Authority had no jurisdiction, the CBDT circular/notification dated 29.03.2022 having specifically vested exclusive power in NFAC to issue Section 148 notices. Learned counsel for the Union of India did not dispute that the matter is covered by Co-ordinate 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), which allowed writ petitions on the same issue with liberty to the revenue to follow the procedure laid down under the Act, 1961 and proceed accordingly, if so advised. The petition is disposed of in terms of those decisions and all pending applications stand disposed of accordingly. The petitioner's appeal pending before the Appellate Authority is noted.

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CWP-13164-2025

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128 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

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CWP-13164-2025 Date of Decision: May 09, 2025

Satbir Singh

.....Petitioner

Versus

Union of India and others

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..... Respondents

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CORAM:- HON'BLE MRS. JUSTICE LISA GILL HON'BLE MR. JUSTICE VIKAS SURI

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Present: Mr. Umang Goyal, Advocate for the petitioner.

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Mr. Saurabh Kapoor, Advocate for the respondents.

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LISA GILL, J.

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Challenge in the present petition is to notice dated 29.03.2024 issued under Section 148 of the Income Tax Act, 1961 (for short ‘Act 1961”); assessment order dated 28.03.2025 issued under Section 147 of the Act, 1961; demand notice dated 28.03.2025 issued under Section 156 of the Act, 1961; penalty show cause notice dated 29.03.2025 issued under Section 274 of the Act, 1961 and all consequential actions, for AY 2020- 2021. Petitioner has challenged notice dated 29.03.2024 issued under Section 148 of the Act, 1961, on the ground that Issuing Authority had no jurisdiction to issue the same, in view of circular/notification dated 29.03.2022 of the CBDT, wherein, it has been specifically enumerated that NFAC has exclusive power to issue notice under Section 148 of the Act, 1961.

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RITU SHARMA 2025.05.15 10:09 I attest to the accuracy and integrity of this document

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CWP-13164-2025

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Learned counsel for petitioner contends that the issue involved in the present writ petition is covered by 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. 21509- 2023 and other connected matters), decided on 29.07.2024. Learned counsel for petitioner has further submitted that petitioner has preferred an appeal and same is pending before the Appellate Authority.

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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 file with their able assistance.

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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. Relevant portion of decision dated 19.07.2024 in Jatinder Singh Bhangu’s case (supra) reads as under:-

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“15. From the perusal of Section 151A, it is quite evident that scheme of faceless assessment is applicable from the stage of show cause notice under Section 148 as well as 148A. Clause 3(b) of notification dated 29.03.2022 issued under Section 151A clearly provides that scheme would be applicable to notice under Section 148. Even otherwise, it is a settled proposition of law that assessment proceedings commence from the stage of issuance of show cause notice. The object of introduction of faceless assessment would be defeated if show cause notice under Section 148 is issued by

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RITU SHARMA 2025.05.15 10:09 I attest to the accuracy and integrity of this document

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CWP-13164-2025

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Jurisdictional Assessing Officer. The respondents are heavily placing reliance upon office memorandum and letter issued by departmental authorities. It is axiomatic in tax jurisprudence that circulars, instructions and letters issued by Board or any other authority cannot override statutory provisions. The circulars are binding upon authorities and Courts are not bound by circulars. The mandate of Section 144B, 151A readwith notification dated 29.03.2022 issued thereunder is quite lucid. There is no ambiguity in the language of statutory provisions, thus, office memorandum or any other instruction issued by Board or any other authority cannot be relied upon.”

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