2023 (2) TMI 1172 - HC - Income Tax

Reopening of assessment u/s 147 - validity of Order passed u/s 148A(d) and notice u/s 148 - period of limitation - HELD THAT - The record shows that the impugned notice was sent by e-mail to the Petitioner at 12 11 A.M. on 16.07.2021 on the e-mail ID [email protected]. 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 11 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. We agree with learned Counsel for the petitioner/assessee, that the impugned notice is barred by limitation and is contrary the view taken by the Court in Suman Jeet Agarwal case 2022 (9) TMI 1384 - DELHI HIGH COURT and Vinayak Services case 2022 (12) TMI 1424 - DELHI HIGH COURT

Summary

Issues:
Challenging notice under Section 148 of the Income Tax Act, 1961 as per the new regime introduced by the Finance Act, 2021; Barred by limitation; Validity of notice issued under the erstwhile Section 148 of the Act; Date of service of the impugned notice.

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, for Assessment Year 2013-14, arguing it was not in accordance with the new regime introduced by the Finance Act, 2021 and was barred by limitation. An order was passed against the petitioner based on this notice. The petitioner contended that the notice was served after the time period available for issuing such notices had expired, relying on previous judgments. The respondent argued that the notice was issued on 30.06.2021, as evidenced by the Document Identification Number (DIN) and a technical glitch caused the delay in delivery.

The Court considered the evidence of the date and time stamp on the email sent to the petitioner, confirming the delivery of the notice on 16.07.2021, despite being dated 30.06.2021. The respondent failed to provide any other document proving the delivery before 16.07.2021. The Court agreed with the petitioner's argument that the notice was indeed barred by limitation, in line with previous judgments on similar matters.

Consequently, the Court set aside the impugned notice issued under Section 148 of the Act, disposing of the Writ Petition accordingly. The parties were instructed to act based on the digitally signed copy of the order.

This judgment highlights the importance of adherence to statutory timelines for issuing notices under the Income Tax Act, ensuring that procedural requirements are met to maintain the validity of such notices. The Court's decision emphasized the need for proper documentation and timely service of notices to uphold the principles of legality and procedural fairness in tax proceedings.