2025 (5) TMI 2195 - HC - Income Tax

Writ dismissed; coordinate decisions allow revenue reassessment under Income-tax Act after following Section 148 procedure

Writ petition dismissed as disposed of; HC followed coordinate-bench decisions which had allowed similar writs but granted the revenue liberty to proceed ... Reopening of assessment u/s 147 - scope of 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 u/s 148 - whether 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 u/s 148? HELD THAT:- A Co-ordinate Bench of this Court in Jatinder Singh Bhangu's case [2024 (7) TMI 1191 - PUNJAB AND HARYANA HIGH COURT] and Jasjit Singh's case [2024 (8) TMI 228 - PUNJAB AND HARYANA HIGH COURT] 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. Present writ petition is disposed of accordingly. Petitioner challenged notice dated 12.03.2024 issued under Section 148, Income Tax Act, 1961 (AY 2020-2021), contending the issuing authority lacked jurisdiction in light of CBDT circular/notification dated 29.03.2022 which 'specifically enumerated that the NFAC has exclusive power to issue the notice under Section 148 of the Act, 1961.' The Union did not dispute the applicability of the co-ordinate bench rulings. Reliance was placed on two co-ordinate bench decisions (Jatinder Singh Bhangu and Jasjit Singh), where identical challenges were allowed and petitioners were granted liberty for the revenue to 'follow the procedure as laid down under the Act, 1961 and proceed accordingly, if so advised.' Having considered submissions and records, the court disposed of the writ petition in terms of those decisions and directed that all pending applications, if any, also stand disposed of.