JARNAIL SINGH V. UNION OF INDIA AND OTHERS

CWP/565/2025

AI Insights

The case revolves around a series of notices issued to the petitioner, Jarnail Singh, under different sections of the Income Tax Act, 1961, concerning the assessment year 2020-2021. The petitioner challenged these notices on the grounds that they were issued by an authority lacking jurisdiction, citing a CBDT circular that designated the NFAC as the sole body authorized to issue such notices. The Union of India did not contest this interpretation. The court referenced similar cases, Jatinder Singh Bhangu and Jasjit Singh, where it had previously ruled in favor of the petitioners under similar circumstances. Consequently, the court disposed of the petition, allowing the revenue to proceed only if it adheres to the proper procedural guidelines as outlined in the Act.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 724659 (HC-MISC)
• Appeal Type: Others
• Pronouncement Date: 14-01-2025
• Assessment Year: misc
• Other Referred Cases: Jatinder Singh Bhangu vs. Union of India and others, Jasjit Singh vs. Union of India and others
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: SAURABH KAPOOR; PRIDHI SANDHU; MUSKAN GUPTA
• Assessee Lawyers: AMBIKA JINDAL
• Keywords: CBDT; Income Tax Act; Jurisdiction; NFAC; Notice
• Section: 148; 144; 142(1); 143(2); 142

Judgement Text

"CWP-565-2025 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 115 CWP-565-2025 (O&M) Date of Decision:-14.01.2025 Jarnail Singh ....Petitioner Vs. Union of India and others ...Respondents CORAM: HON'BLE MR. JUSTICE ARUN PALLI HON'BLE MRS. JUSTICE SUDEEPTI SHARMA Present: Ms. Ambika Jindal, Advocate for the petitioner. Mr. Saurabh Kapoor, Sr. Standing counsel with Ms. Pridhi Sandhu, Jr. Standing counsel and Ms. Muskan Gupta, Advocate for the respondent-Union of India. *** SUDEEPTI SHARMA, J. 1. Challenge in the instant writ petition is to notices dated 22.03.2024 issued under Section 148 of the Income Tax Act, 1961 (for short ‘Act 1961”); 28.06.2024, 12.09.2024 issued under Section 142 of the Act, 1961; 9.10.2024 issued under Section 143 (2) of the Act, 1961, SCN dated 23.10.2024, notice dated 22.11.2024 issued under Section 142 (1) of the Act, 1961, SCN dated 09.12.2024 issued under Section 144 of the Act, 1961 and SCN dated 26.12.2024 issued in consequence of the notice issue under Section 148 of the Act, 1961, 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 and others, passed in CWP No. 15745-2024 and connected Gaurav Arora 2025.01.16 11:20 I attest to the accuracy and integrity of this document CWP-565-2025 2 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 22.03.2024 issued under Section 148 of the Income Tax Act, 1961 (for short ‘Act 1961”); 28.06.2024, 12.09.2024 issued under Section 142 of the Act, 1961; 9.10.2024 issued under Section 143 (2) of the Act, 1961, SCN dated 23.10.2024, notice dated 22.11.2024 issued under Section 142 (1) of the Act, 1961, SCN dated 09.12.2024 issued under Section 144 of the Act, 1961 and SCN dated 26.12.2024 issued in consequence of the notice issue under Section 148 of the Act, 1961, for AY 2020-21, issued by the Issuing Authority, on the ground that the same 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 terms of Jatinder Singh Bhangu’s case (supra), decided on 19.07.2024 and Gaurav Arora 2025.01.16 11:20 I attest to the accuracy and integrity of this document CWP-565-2025 3 Jasjit Singh’s case (supra), decided on 29.07.2024 8. All the pending applications, if any, also stand disposed of. (ARUN PALLI) (SUDEEPTI SHARMA) JUDGE JUDGE 14.01.2025 Gaurav Arora Whether speaking/reasoned : Yes/No Whether reportable : Yes/No Gaurav Arora 2025.01.16 11:20 I attest to the accuracy and integrity of this document "