P&H HC Quashes Section 148 Notice Issued by AO Instead of NFAC

By CA Rajeev Jain Income Tax Judiciary February 25, 2025 1 comment

TaxGuru Citation: 2025 taxguru.in 1463
Case Name: Rajinder Mehta Vs ITO (Punjab and Haryana High Court)
Appeal Number: Only available for paid members
Date of Judgement/Order: Only available for paid members
Courts: All High Courts, Punjab and Haryana HC

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Rajinder Mehta Vs ITO (Punjab and Haryana High Court)

Income Tax Section 148 Notice Issued by Jurisdictional Assessing Officer Instead of Faceless Assessing Officer Quashed by Punjab and Haryana High Court

In the case of Rajinder Mehta Vs Income Tax officer, Ward 2(1) Faridabad the honorable Punjab & Haryana High Court has held that notice issued by Jurisdictional Assessing Officer after Circular/ Notification dated 29.03.2022 is not in accordance in law. NFAC has exclusive power to issue u/s 148 of the Income Tax Act 1961. This is on the basis of decision of Co-ordinate Bench in the cases of Jatinder Singh Bhangu vs. Union Bank of India and others, passed in CWP No. 15745-2024 and connected matter, decided on 19.07.2024 and Jasjit Singh vs. Union Bank of India and others (CWP No. 21509-2023 and other connected matters), decided on 29.07.2024.

The petitioner has challenged the notice dated 13.03.2024 issued under Section 148 of the Act, 1961, for A.Y. 2020-2021 issued by respondent No.1, on the ground that he 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.