MBS Buildcon Private Limited V. Income Officer and Another

CWP/8330/2025

AI Insights

The case revolves around the petitioner, MBS Buildcon Private Limited, challenging the validity of several notices and an assessment order issued for the assessment year 2019-20 under the Income Tax Act, 1961. The petitioner argued that the notices were issued by an authority lacking jurisdiction, citing a CBDT circular that specified the NFAC as the sole entity authorized to issue notices under Section 148 of the Act. The respondents did not contest this interpretation. The court referenced similar cases, Jatinder Singh Bhangu vs. Union of India and Jasjit Singh vs. Union of India, where it had previously ruled in favor of the petitioners under similar circumstances.

• Counselvise Citation: [] 140 COUNSELVISE.COM (IT) 822237 (HC-CHANDIGARH)
• Appeal Type: Others
• Pronouncement Date: 12-12-2025
• 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: GAURI RAMPAL
• Assessee Lawyers: NITIN KANWAR
• Keywords: Assessment; CBDT; Faceless assessment; Jurisdiction; National Faceless Assessment Centre; Notice
• Section: 147; 148; 144; 148A(b); 148A(d)

Judgement Text

"CWP-8330-2025 -1- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 210 CWP-8330-2025 Date of decision :12.12.2025 MBS BUILDCON PRIVATE LIMITED FORMALLY KNOWN AS LNB CONSTRUCTION PRIVATE LIMITED ... PETITIONER VERSUS INCOME OFFICER AND ANOTHER ...RESPONDENTS CORAM: HON'BLE MRS. JUSTICE LISA GILL HON'BLE MR. JUSTICE PARMOD GOYAL Present: Mr. Nitin Kanwar, Advocate (through V.C.) for the petitioner. Ms. Gauri Neo Rampal, Sr. Standing Counsel (through V.C.) for the respondents. **** LISA GILL, J. (ORAL) 1. Prayer in this petition is for setting aside of notice dated 06.04.2023 (Annexure-P-1) under Section 148 of Income Tax Act, 1961 (for short ‘1961 Act’) order under Section 148A(d) dated 06.04.2023 (Annexure-P-2) and show cause notice under Section 148A(b) dated 18.03.2023 (Annexure-P-4) of 1961 Act and assessment order under section 147 r/w Section 144 dated on 20.02.2025 (Annexure- P-3) of 1961 Act, for assessment year 2019-20. There is a further prayer for restraining the respondent from conducting any further proceedings in the matter. 2. Learned counsel for petitioner submits that dehors any other available ground, this writ petition be allowed on the ground that Issuing Authority had no jurisdiction to issue abovesaid notice dated 26.03.2024, in view of circular/notification dated 29.03.2022 of the CBDT, wherein, it has been Printed from counselvise.com MANOJ KUMAR 2025.12.16 13:33 I attest to the accuracy and integrity of this document CWP-8330-2025 -2- specifically enumerated that National Faceless Assessment Centre (NFAC) has exclusive power to issue notice under Section 148 of the Act, 1961. 3. It is submitted that the said issue is covered by 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. 4. Learned counsel appearing for the respondent does not dispute the same. 5. We have heard learned counsel for the parties and perused the file with their able assistance. 6. 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. Relevant portion of decision dated 19.07.2024 in Jatinder Singh Bhangu's case (supra) reads as under:- “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 proceedings commence from 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 Printed from counselvise.com MANOJ KUMAR 2025.12.16 13:33 I attest to the accuracy and integrity of this document CWP-8330-2025 -3- 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.” 7. In view of the above and without adverting to or adjudicating any other issue, 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. (LISA GILL) JUDGE (PARMOD GOYAL) 12.12.2025 JUDGE manoj Whether speaking/reasoned Yes/No Whether reportable Yes/No Printed from counselvise.com MANOJ KUMAR 2025.12.16 13:33 I attest to the accuracy and integrity of this document "