Disposed¶¶7

Build Basket v. Income Tax Officer Ward 1(1) Faridabad and Others

Punjab & Haryana HC11 Mar 2025CWP/6759/2025

Case brief

AI extract

What is this about?

Section 148 notice validity; AY 2020-2021; NFAC exclusive jurisdiction; CBDT circular/notification dated 29.03.2022; Issuing Authority jurisdiction; disposal in terms of Co-ordinate Bench precedent; Jatinder Singh Bhangu (CWP No. 15745-2024, 19.07.2024); Jasjit Singh (CWP No. 21509-2023, 29.07.2024); liberty to revenue to follow procedure under Act, 1961; Punjab and Haryana High Court at Chandigarh; CWP-6759-2025 (O&M); decision date 11.03.2025.

What did the court decide?

Writ petition disposed of in terms of Jatinder Singh Bhangu (decided 19.07.2024) and Jasjit Singh (decided 29.07.2024), which had allowed identical petitions granting liberty to the revenue to follow the procedure under the Act, 1961, if so advised; all pending applications, if any, stand disposed of. ¶¶7

Build Basket Vs Income Tax Officer Ward 1(1) Faridabad… — Income Tax | Punjab & Haryana HC (2025)

What the court decided

AI extract

Outcome

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Issue for consideration

Whether the notice dated 27.03.2024 issued under Section 148 of the Income Tax Act, 1961 and the consequential actions for AY 2020-2021 were sustainable when, per the petitioner, the Issuing Authority had no jurisdiction to issue the same in view of the CBDT circular/notification dated 29.03.2022 enumerating that the NFAC has exclusive power to issue Section 148 notices.

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Court's answer

A Co-ordinate Bench of this Court in Jatinder Singh Bhangu and Jasjit Singh allowed writ petitions raising the same issue as in the present writ petition, 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 is covered by those judgments.

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Ratio / Principle

In view of the above, the present writ petition is disposed of in terms of Jatinder Singh Bhangu (decided on 19.07.2024) and Jasjit Singh (decided on 29.07.2024), and all pending applications, if any, also stand disposed of.

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Detailed headnote1 paragraphs

Punjab & Haryana High Court (CWP-6759-2025 (O&M), decided 11.03.2025; Sudeepti Sharma, J., with Arun Palli, J.) disposed of a writ petition by Build Basket challenging a notice dated 27.03.2024 issued under Section 148 of the Income Tax Act, 1961 and consequential actions for AY 2020-2021. The challenge rested on the contention that the Issuing Authority had no jurisdiction, the CBDT circular/notification dated 29.03.2022 having enumerated that the NFAC has exclusive power to issue Section 148 notices. Following 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 had allowed identical petitions with liberty to the revenue to follow the procedure under the Act, 1961, if so advised — and noting that counsel for the Union of India did not dispute coverage, the Court disposed of the petition in terms of those judgments; pending applications were also disposed of.

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CWP-6759-2025

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IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

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154

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CWP-6759-2025 (O&M) Date of Decision:-11.03.2025

Build Basket

....Petitioner

Vs.

Income Tax Officer, Ward 1(1), Faridabad and ors.

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...Respondents

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

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Present: Mr. Kartik Bansal, Advocate 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 27.03.2024 issued under Section 148 of the Income Tax Act, 1961 (for short ‘Act 1961”) and conseuqential 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 .

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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

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Gaurav Arora 2025.03.18 17:48 I attest to the accuracy and integrity of this document

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CWP-6759-2025

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whole records of the case.

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The petitioner has challenged the notice dated 27.03.2024 issued under Section 148 of the Act, 1961 and conseuqential 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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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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(ARUN PALLI) (SUDEEPTI SHARMA) JUDGE JUDGE 11.03.2025 Gaurav Arora Whether speaking/reasoned : Yes/No Whether reportable : Yes/No

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Gaurav Arora 2025.03.18 17:48 I attest to the accuracy and integrity of this document

Build Basket v. Income Tax Officer Ward 1(1) Faridabad and Others

Case brief

What is this about?

What did the court decide?

Build Basket v. Income Tax Officer Ward 1(1) Faridabad and Others

Case brief

What is this about?

What did the court decide?

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What the court decided

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