PUNJAB STEEL FORGING AND AGRO INDUSTRIES V. DEPUTY COMMISSIONER OF INCOME TAX AND OTHERS

CWP/12659/2025

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The case involves Punjab Steel Forging and Agro Industries challenging several notices and orders issued by the Deputy Commissioner of Income Tax, Circle Patiala, under various sections of the Income Tax Act, 1961, for the assessment year 2017-2018. The petitioner argued that these were issued without proper jurisdiction, citing a CBDT circular that specified the NFAC as the exclusive authority for issuing such notices. The court referenced similar cases (Jatinder Singh Bhangu and Jasjit Singh) where it had previously ruled in favor of the petitioners under similar circumstances, thereby setting a precedent.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 747477 (HC-CHANDIGARH)
• Appeal Type: Others
• Pronouncement Date: 05-05-2025
• 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; MUSKAN GUPTA
• Assessee Lawyers: B M MONGA
• Keywords: Assessment Order; CBDT Circular; Demand notice; Jurisdiction; NFAC exclusive power; Notice; Penalty show cause notice
• Section: 147; 148; 156; 271 AAC(1)

Judgement Text

"CWP-12659-2025 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 182 CWP-12659-2025(O&M) Date of Decision:-05.05.2025 Punjab Steel Forging and Agro Industries ....Petitioner Vs. Dy. commissioner of Income Tax, Circle Patiala & ors. ...Respondents CORAM: HON'BLE MRS. JUSTICE LISA GILL HON'BLE MRS. JUSTICE SUDEEPTI SHARMA Present: Mr. B.M. Monga, 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 08.03.2024 issued under Section 148 of the Income Tax Act, 1961 (for short ‘Act 1961”); assessment order dated 31.03.2025 issued under Section 147 of the Act, 1961; demand notice dated 31.03.2025 issued under Section 156 of the Act, 1961; penalty show cause notice dated 31.03.2025 issued under Section 271 AAC (1) of the Act, 1961 and all consequential actions, for AY 2017- 2018. 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 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 Gaurav Arora 2025.05.07 14:39 I attest to the accuracy and integrity of this document CWP-12659-2025 2 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 08.03.2024 issued under Section 148 of the Act, 1961; assessment order dated 31.03.2025 issued under Section 147 of the Act, 1961; demand notice dated 31.03.2025 issued under Section 156 of the Act, 1961; penalty show cause notice dated 31.03.2025 issued under Section 271 AAC (1) of the Act, 1961 and all consequential actions, for AY 2017-2018, 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 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 05.05.2025 Gaurav Arora Whether speaking/reasoned : Yes/No Whether reportable : Yes/No Gaurav Arora 2025.05.07 14:39 I attest to the accuracy and integrity of this document "