Disposed¶24

Chinar Forge Limited v. Assistant Commisioner of Income Tax

Punjab & Haryana HC2 Jul 2025CWP/17743/2025

Case brief

AI extract

What is this about?

Chinar Forge Ltd. v. Asstt. Commissioner of Income Tax, DCIT/ACIT Circle 1, Model Town Road Jalandhar; CWP-17743-2025; Punjab and Haryana High Court at Chandigarh; decision dated 02.07.2025; S.148 IT Act notice; S.147 read with S.144 assessment; jurisdiction of issuing authority; NFAC exclusive power; CBDT circular/notification dated 29.03.2022; AY 2020-2021; appeal pending before Appellate Authority; disposal with direction in terms of Jatinder Singh Bhangu and Jasjit Singh.

What did the court decide?

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; pending applications, if any, disposed of. ¶24

Chinar Forge Limited Vs Assistant Commisioner of Income… — 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 the notice dated 30.03.2024 under Section 148 and pass the assessment order dated 29.03.2025 under Section 147 read with Section 144 of the Act, 1961 for AY 2020-2021, in view of the CBDT circular/notification dated 29.03.2022 vesting exclusive power in the NFAC to issue notices under Section 148.

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Court's answer

Since the petitioner's appeal is pending before the Appellate Authority, the writ petition is disposed of with a direction to the Appellate Authority to decide the petitioner's appeal in terms of the Co-ordinate Bench judgments in Jatinder Singh Bhangu and Jasjit Singh. The jurisdictional issue itself was not independently adjudicated by this Bench.

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Ratio / Principle

All pending applications, if any, stand disposed of.

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Detailed headnote1 paragraphs

Direct tax - Challenge to notice dated 30.03.2024 issued under S.148 of the Income Tax Act, 1961 and assessment order dated 29.03.2025 issued under S.147 read with S.144 of the Act, 1961, with consequential actions, for AY 2020-2021 - Ground: Issuing Authority lacked jurisdiction as CBDT circular/notification dated 29.03.2022 specifically enumerates that NFAC has exclusive power to issue S.148 notices - Issue held covered by Co-ordinate Bench decisions of this Court in Jatinder Singh Bhangu (CWP No. 15745-2024 and connected matter, decided 19.07.2024) and Jasjit Singh (CWP No. 21509-2023 and connected matters, decided 29.07.2024), wherein writ petitions were allowed with liberty to revenue to follow the procedure under the Act, 1961 - Assessee's appeal pending before the Appellate Authority - Writ petition disposed of with direction to the Appellate Authority to decide the appeal in terms of the said judgments.

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CWP-17743-2025 [1]

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IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

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121

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CWP-17743-2025 Date of decision: 02.07.2025

Chinar Forge Ltd.

...Petitioner

Versus

Asstt. Commissioner of Income Tax, DCIT/ACIT Circle 1, Model Town Road Jalandhar & ors. ...Respondents

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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. S.K. Mukhi, Advocate, for the petitioner.

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

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SUDEEPTI SHARMA, J.

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Challenge in the present petition is to notice dated 30.03.2024 issued under Section 148 of the Income Tax Act, 1961 (for short ‘Act 1961); assessment order dated 29.03.2025 issued under Section 147 read with Section 144 of the Act, 1961 and all consequential actions, for AY 2020-2021.

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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. 21509-2023 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.

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Learned counsel appearing for Union of India has also not disputed

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Gaurav Arora 2025.07.09 10:25 I attest to the accuracy and integrity of this document

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CWP-17743-2025 [2]

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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 30.03.2024 issued under Section 148 of the Act, 1961; assessment order dated 29.03.2025 issued under Section 147 read with Section 144 of the Act, 1961 and all consequential actions, for AY 2020-2021, 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 (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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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.

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

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(LISA GILL) (SUDEEPTI SHARMA) JUDGE JUDGE

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02.07.2025

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Gaurav Arora

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

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Gaurav Arora 2025.07.09 10:25 I attest to the accuracy and integrity of this document

Chinar Forge Limited v. Assistant Commisioner of Income Tax

Case brief

What is this about?

What did the court decide?

Chinar Forge Limited v. Assistant Commisioner of Income Tax

Case brief

What is this about?

What did the court decide?

Why is it important?

What the court decided

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