Ashish Mehta V. Union of India & ors.

CWP/11301/2025

AI Insights

The case revolves around a series of notices and orders issued to the petitioner, Ashish Mehta, under various sections of the Income Tax Act, 1961, concerning the assessment year 2020-2021. The petitioner challenged these notices and orders on the grounds that they were issued by an authority lacking jurisdiction, contrary to a CBDT circular that designated the NFAC as the sole authority for such actions. The court referenced similar cases, Jatinder Singh Bhangu and Jasjit Singh, where it had previously ruled in favor of the petitioners under similar circumstances. The Union of India did not contest the applicability of these precedents.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 693550 (HC-CHANDIGARH)
• Appeal Type: Others
• Pronouncement Date: 25-04-2025
• Assessment Year: misc
• Other Referred Cases: Jatinder Singh Bhangu vs. Union of India, Gaurav Arora vs. Union of India, Jasjit Singh vs. Union of India
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: SAURABH KAPOOR; MUSKAN GUPTA
• Assessee Lawyers: INDERJEET SINGH
• Keywords: CBDT; Demand notice; Jurisdiction; NFAC; Notice; Re-assessment
• Section: 147; 148; 144; 144(b); 148(A)(b); 148 A (d)

Judgement Text

"CWP-11301-2025 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 139 CWP-11301-2025(O&M) Date of Decision:-25.04.2025 Ashish Mehta ....Petitioner Vs. Union of India & ors. ...Respondents CORAM: HON'BLE MRS. JUSTICE LISA GILL HON'BLE MRS. JUSTICE SUDEEPTI SHARMA Present: Mr. Ranbir Singh Rawat, Advocate Mr. Inderjeet Singh, Advocate, for the petitioner. Mr. Saurabh Kapoor, Sr. Standing counsel with Ms. Muskan Gupta, Advocate for the respondents. *** SUDEEPTI SHARMA, J. 1. 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”) ; notice dated 15.03.2024 issued under Section 148 A (b) of the Act, 1961; draft order dated 29.03.2024 issued under Section 148 A (d) of the Act, 1961; notice dated 30.05.2024 issued under Section 144 B of the Act, 1961; show cause notice dated 08.10.2024 issued under Section 144 of the Act, 1961; show cause notice dated 11.03.2025; re-assessment order dated 18.03.2025 issued under Section 147 of the Act, 1961; demand notice dated 18.03.2025 and all consequential actions, for AY 2020-2021. 2. 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 Gaurav Arora 2025.05.01 15:03 I attest to the accuracy and integrity of this document CWP-11301-2025 2 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. 3. Learned counsel appearing for Union of India has also not disputed the same. 4. We have heard learned counsel for the parties and perused the whole records of the case. 5. The petitioner has challenged the notice dated 29.03.2024 issued under Section 148 of the Act, 1961; notice dated 15.03.2024 issued under Section 148 A (b) of the Act, 1961; draft order dated 29.03.2024 issued under Section 148 A (d) of the Act, 1961; notice dated 30.05.2024 issued under Section 144 B of the Act, 1961; show cause notice dated 08.10.2024 issued under Section 144 of the Act, 1961; show cause notice dated 11.03.2025; re-assessment order dated 18.03.2025 issued under Section 147 of the Act, 1961; demand notice dated 18.03.202 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. 6. 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. 7. In view of the above, the present writ petition is disposed of, in Gaurav Arora 2025.05.01 15:03 I attest to the accuracy and integrity of this document CWP-11301-2025 3 terms of Jatinder Singh Bhangu’s case (supra), decided on 19.07.2024 and Jasjit Singh’s case (supra), decided on 29.07.2024. 8. All the pending applications, if any, also stand disposed of. (LISA GILL) (SUDEEPTI SHARMA) JUDGE JUDGE 25.04.2025 Gaurav Arora Whether speaking/reasoned : Yes/No Whether reportable : Yes/No Gaurav Arora 2025.05.01 15:03 I attest to the accuracy and integrity of this document "