SHYAM CHAND,KULLU V. ITO WARD KULLU, KULLU

ITA 211/CHANDI/2025

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The case involves Shri Shyam Chand, the appellant, contesting the validity of a notice issued under Section 148A(d) of the Income Tax Act for the assessment year 2015-16. The notice was issued by the jurisdictional Assessing Officer on 31.03.2022, contrary to the faceless assessment procedure established by a Finance Ministry notification dated 29.03.2022. The Tribunal, referencing judgments from the Supreme Court and the Punjab & Haryana High Court, found the notice to be without jurisdiction and quashed the re-assessment order.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 772272 (ITAT-CHANDIGARH)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2015-2016
• Other Referred Cases: NTPC Ltd. Vs CIT, Disha Gupta Vs Central Board of Direct Taxes, Jatinder Singh Bhangu Vs. Union of India, Jasjit Singh Vs. Union of India, Deepak Sibal Vs. Union of India
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RANJIT KAUR
• Assessee Lawyers: SHAANTANU JAIN
• Section: 148

Judgement Text

"आयकर अपीलȣय अͬधकरण,चÖडीगढ़ Ûयायपीठ, चÖडीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, ‘B’ CHANDIGARH BEFORE SHRI RAJPAL YADAV, VICE PRESIDENT AND SHRI KRINWANT SAHAY, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No. 211/CHD/2025 Ǔनधा[रण वष[ / Assessment Year: 2015-16 Shri Shyam Chand, C/o B-50, LGF, South Extension-II New Delhi. Vs The ITO, Ward, Kullu. èथायी लेखा सं./PAN NO: AVBPC6625R अपीलाथȸ/Appellant Ĥ×यथȸ/Respondent Assessee by : Shri Shaantanu Jain, Advocate Revenue by : Dr. Ranjit Kaur, Addl. CIT Sr.DR Date of Hearing : 12.08.2025 Date of Pronouncement : 27.08.2025 HYBRID HEARING O R D E R PER RAJ PAL YADAV, VP The assessee is in appeal before the Tribunal against the order of the ld. Commissioner of Income Tax (Appeals) [in short ‘the CIT (A)’] dated 20.12.2024 passed in assessment year 2015-16. 2. The assessee has pleaded an additional ground of appeal whereby he has contended that notice u/s 148A(d) of the Act was issued on 31.03.2022 by jurisdictional AO instead of Printed from counselvise.com ITA No.211/CHD/2025 A.Y.2015-16 2 Faceless AO contemplated in the Notification issued by the Finance Ministry on 29.03.2022. Since this is a pure legal question, therefore, we permit the assessee to raise this additional ground of appeal as per the judgement of Hon'ble Supreme Court in the case of NTPC Ltd. Vs CIT reported in 229 ITR page 383. In support of his contention, he relied upon judgement of Hon'ble Punjab & Haryana High Court in the case of CWP No. 22762 of 2025 in the case of Disha Gupta Vs Central Board of Direct Taxes and others. 3. The ld. Ld. CIT DR was unable to controvert this submission of the ld. counsel for the assessee. 4. We find that an identical issue was decided by this Bench in ITA No.1040/CHD/2024 with C.O. No.41/CHD/2024. The finding of the Tribunal read as under: “6. We have duly considered the rival contentions and gone through the record carefully. Admittedly, notice under Section 148 was issued after the Notification issued by the Ministry of Finance, Government of India on 29.03.2022. The notice under Section 148 has been issued on 29.03.2023 i.e. almost one year from the Notification. Thus, facts of other year are squarely applicable. The issue in dispute is covered by the judgement of Hon'ble jurisdictional High Court which read as under : “DEEPAK SIBAL, J. (Oral) 1. Challenge made through the instant petition is to the notice dated 01.03.2025 (Annexure P-l) issued to the petitioner by the respondents tinder Section 148 of the Income Tax Act, 1961. The primary ground of challenge Printed from counselvise.com ITA No.211/CHD/2025 A.Y.2015-16 3 raised by the petitioner is that the impugned notice has been issued by the Jurisdictional Assessing Officer which could not have been done because in terms of the notification dated 29.03.2022 (Annexure P-2), issued by the Ministry of Finance. Government of India, the impugned notice could have been issued only by way of faceless assessment. 2. In support of his afore submission, learned counsel for the petitioner places reliance on the following two judgments of this Court:- i. CWP-15745-2024, titled Jatinder Singh Bhangu Vs. Union of India and others, decided on 19.07.2024; and ii. CWP-21509-2023, titled Jasjit Singh Vs. Union of India and others, decided on 29.07.2024. 3. Learned counsel for the respondents does not dispute the fact that the case of the petitioner is covered in his favour by the law laid down through the aforesaid two judgments rendered by two different co-ordinate Benches of this Court in Jatinder Singh Bhangu and Jasjit Singh’s case (supra). . 4. In the light of the above, in terms of the law laid down in Jatinder Singh Bhangu's and Jasjit Singh's cases (supra) the impugned notice dated 01.03.2025 (Annexure P-1) issued by the Jurisdictional Assessing Officer, is hereby quashed with liberty to the respondents to proceed against the petitioner in accordance with law. 5. The petition is allowed in the above terms. [DEEPAK SIBAL] JUDGE [ LAPITA BANERJI] 30.04.2025 JUDGE 7. Respectfully following the judgement of the Hon'ble High Court, we allow the ground of appeal of Cross Objection and hold that notice issued under Section 148 of the Income Tax Act in assessment year 2019-20 is bad in the eyes of law. It was without jurisdiction. Accordingly, re-assessment order is quashed.” 5. Apart from this order, there are large number of judgements at the end of the Jurisdictional High Court including in the case of Disha Gupta (supra). Printed from counselvise.com ITA No.211/CHD/2025 A.Y.2015-16 4 6. Respectfully following the judgement, we quash the re- assessment order because notice u/s 148A(1) was issued on 31.03.2022 as observed by the JAO in the assessment order. Accordingly, this plea of the assessee is allowed and re-assessment order is quashed. The appeal of the assessee is allowed. 7. In the result, appeal of the assessee is allowed. Order pronounced on 27.08.2025. Sd/- Sd/- (KRINWANT SAHAY) (RAJPAL YADAV) ACCOUNTANT MEMBER VICE PRESIDENT “Poonam” आदेश कȧ ĤǓतͧलͪप अĒेͪषत/ Copy of the order forwarded to : 1. अपीलाथȸ/ The Appellant 2. Ĥ×यथȸ/ The Respondent 3. आयकर आयुÈत/ CIT 4. ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय आͬधकरण, चÖडीगढ़/ DR, ITAT, CHANDIGARH 5. गाड[ फाईल/ Guard File सहायक पंजीकार/ Assistant Registrar Printed from counselvise.com "