2023 (2) TMI 1171 - HC - Income Tax

Reopening of assessment - Validity of order u/s 148A(d) - notice barred by limitation - HELD THAT - The record shows that the impugned notice was sent by e-mail to the Petitioner at 12 12 A.M. on 16.07.2021 on the e-mail ID. It cannot but be accepted by the respondent/revenue that even though the notice is dated 30.06.2021, the e-mail that has been placed on record evidencing service of the impugned notice, bears a date and time stamp 16.07.2021 at 12 12 A.M. No other document establishing delivery of the impugned notice on any date prior to 16.07.2021 has been placed on record by the respondent/revenue. In these circumstances, we agree with learned Counsel for the petitioner/assessee, that the impugned notice is barred by limitation and is contrary to the view taken by the Court in Suman Jeet Agarwal case 2022 (9) TMI 1384 - DELHI HIGH COURT and M/s Vinayak Services case 2022 (12) TMI 1424 - DELHI HIGH COURT

Summary

Issues:
Challenge to notice under Section 148 of the Income Tax Act, 1961 based on the new regime introduced by the Finance Act, 2021 and the limitation period for issuing notices.

Analysis:
The Writ Petition challenged a notice issued under Section 148 of the Income Tax Act, 1961, dated 30.06.2021, received by the petitioner on 16.07.2021, concerning Assessment Year 2013-14. The petitioner argued that the notice was not in accordance with the new regime introduced by the Finance Act, 2021, and was barred by limitation. The petitioner relied on the Judgment of a Coordinate Bench and an order passed by the current Bench to support the claim of limitation. An order under Section 148A(d) of the Act was passed based on the impugned notice (para 1-2).

The petitioner contended that the impugned notice was served after the time period available to the revenue to issue notices under the erstwhile Section 148 of the Act had expired. The petitioner argued that the impugned notice was not valid due to being served after the deadline. The respondent, however, argued that the notice was issued on 30.06.2021 and the delay in delivery was due to a technical glitch. The Court noted that the e-mail evidence showed the notice was sent on 16.07.2021, supporting the petitioner's claim of being time-barred (para 3-5).

The Court agreed with the petitioner that the impugned notice was indeed barred by limitation, in line with previous judgments on similar matters. Consequently, the Court set aside the notice issued under Section 148 of the Act, disposing of the Writ Petition accordingly (para 6-8). Parties were instructed to act based on the digitally signed copy of the order (para 9).