HARMIT KAUR,YAMUNANAGAR V. ITO, WARD-3, YAMUNANAGAR

ITA 981/CHANDI/2025

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The case revolves around a legal challenge by the assessee, Harmit Kaur, against the jurisdiction of the Assessing Officer who issued a notice under section 148 of the Income-tax Act, 1961, for the assessment year 2020-21. The notice was issued by the Jurisdictional AO instead of the NFAC, as required by the CBDT Notification No. 18/2022. The assessee contested the validity of the reassessment proceedings, which was initially dismissed by the CIT(A) on grounds of limitation without addressing the jurisdictional issue. The tribunal, referencing decisions from the Punjab & Haryana High Court, held that the notice and subsequent reassessment were void ab initio due to the lack of jurisdiction of the issuing authority.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 779741 (ITAT-CHANDIGARH)
• Duration Of Justice: 2 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2020-2021
• Appeal Filed On: 04-08-2025
• Other Referred Cases: Satpal Kaur v. Union of India & Ors, Jatinder Singh Bhangu v. UOI, Jasjit Singh v. UOI
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIVEK VARDHAN
• Assessee Lawyers: AVNEET SINGH; PRANAV JAIN
• Keywords: Reassessment proceedings; Competent authority
• Section: 147; 148

Judgement Text

"आयकर अपीलीय अिधकरण,चǷीगढ़ Ɋायपीठ “ए” , चǷीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “A”, CHANDIGARH HEARING THROUGH: PHYSICAL MODE ŵी लिलत क ुमार, Ɋाियक सद˟ एवं ŵी क ृणवȶ सहाय, लेखा सद˟ BEFORE: SHRI. LALIET KUMAR, JM & SHRI. KRINWANT SAHAY, AM आयकर अपील सं./ ITA No. 981 /Chd/ 2025 िनधाŊरण वषŊ / Assessment Year : 2020-21 Harmit Kaur 171, Village Ratouli, PO: Khera 423 Yamunanagar-135003, Haryana बनाम The ITO Ward-3 Yamunanagar ˕ायी लेखा सं./PAN NO: EIPPK1185K अपीलाथŎ/Appellant ŮȑथŎ/Respondent िनधाŊįरती की ओर से/Assessee by : Shri Avneet Singh & Shri Pranav Jain, Advocate राजˢ की ओर से/ Revenue by : Shri Vivek Vardhan, Addl. CIT, Sr. DR सुनवाई की तारीख/Date of Hearing : 13/10/2025 उदघोषणा की तारीख/Date of Pronouncement : 15/10/2025 आदेश/Order PER LALIET KUMAR, J.M: This appeal by the assessee is directed against the order of the Ld. CIT(A), NFAC, Delhi dated 12.06.2025 arising from assessment order dated 10.03.2025 passed under section 147 r.w.s. 144B of the Income-tax Act, 1961 for A.Y. 2020-21. 2. The assessee has raised, inter alia, a legal ground challenging the very jurisdiction of the Assessing Officer in issuing notice under section 148, contending that the officer who initiated the reassessment proceedings lacked authority in view of CBDT Notification No. 18/2022 dated 29.03.2022 issued under section 151A of the Act, whereby the National Faceless Assessment Centre (NPAC) alone was empowered to issue and process such notices. 3. Briefly the facts of the case are that the Jurisdictional AO, Ward-65(5), issued notice u/s 148 dated 26.03.2024 and completed assessment u/s 147 r.w.s. 44B on 10.03.2025 assessing income of Rs. 12,86,350/-. 4. Against the order of the AO the assessee went in appeal before the Ld. CIT(A). Before the CIT(A), the assessee also urged that the entire reassessment was void ab initio for want of jurisdiction, as the notice ought to have been issued by Printed from counselvise.com 2 NFAC. The Ld. CIT(A), however, dismissed the appeal on limitation without adjudicating this legal ground. 5. Against the order of the Ld. CIT(A), the assessee preferred in appeal before the Tribunal. 6. During the course of hearing the Ld. AR submitted that identical issue has been finally settled by the Hon’ble Punjab & Haryana High Court in Satpal Kaur v. Union of India & Ors (CWP 29690 of 2025, decided 01.10.2025) wherein the High Court followed Jatinder Singh Bhangu v. UOI (decided 19.07.2024) and Jasjit Singh v. UOI (decided 29.07.2024) to hold that only the NFAC/NPAC has jurisdiction to issue notices u/s 148 and 148A, and any notice by Jurisdictional AO is without authority of law. 6.1 It was further argued that the principle enunciated by the High Court is binding on all subordinate authorities in the States of Punjab and Haryana, and therefore the reassessment order passed by a non-competent authority deserves to be quashed. 6.2 Reliance was placed on section 151A read with the said notification and on the doctrine that “when a statute requires a thing to be done in a particular manner, it must be done in that manner or not at all.” 7. Per contra, The Ld. DR supported the assessment order and submitted that the AO had acted bona fide on departmental instructions. It was, however, not disputed that the impugned notice u/s 148 had been issued by the Jurisdictional AO and not by the NFAC. 8. We have carefully considered rival contentions and perused the record. The undisputed facts reveal that the impugned notice u/s 148 was issued on 26.03.2024 by the Jurisdictional AO. The CBDT Notification dated 29.03.2022 issued under section 151A clearly provides that the scheme of faceless assessment shall apply “from the stage of issuance of notice under sections 148 and 148A” and that such proceedings shall be carried out through the National Faceless Assessment Centre. 8.1 The Hon’ble Punjab & Haryana High Court in Jatinder Singh Bhangu (supra) and Satpal Kaur (supra) has categorically held that issuance of notice u/s 148 by a Jurisdictional Assessing Officer after the said notification is without jurisdiction, observing - Printed from counselvise.com 3 \"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 proceecungs commence trom 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 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.\" 8.2 Following the above binding precedent, we hold that the notice issued u/s 148 by the Jurisdictional AO is invalid and void ab initio. Consequently, the entire reassessment proceedings and order dated 10.03.2025 are rendered non est in law. As the legal ground goes to the root of jurisdiction, we refrain from adjudicating other grounds on merits. They are rendered academic. 8.3 The notice u/s 148 dated 27.03.2024 and consequential assessment order dated 10.03.2025 are quashed for want of jurisdiction. 9. In the result, the appeal of the assessee is allowed. Order pronounced in the open Court on 15/10/2025 Sd/- Sd/- क ृणवȶ सहाय लिलत क ुमार (KRINWANT SAHAY) (LALIET KUMAR) लेखा सद˟/ ACCOUNTANT MEMBER Ɋाियक सद˟ /JUDICIAL MEMBER AG आदेश की Ůितिलिप अŤेिषत/ Copy of the order forwarded to : 1. अपीलाथŎ/ The Appellant 2. ŮȑथŎ/ The Respondent 3. आयकर आयुƅ/ CIT 4. आयकर आयुƅ (अपील)/ The CIT(A) 5. िवभागीय Ůितिनिध, आयकर अपीलीय आिधकरण, चǷीगढ़/ DR, ITAT, CHANDIGARH 6. गाडŊ फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar Printed from counselvise.com "