2022 (10) TMI 237 - HC - Income Tax

Validity of reopening of assessment - Section 148 notice sent through speed post, which bears the DIN Notice No which does not exist on the ITBA Portal - as stated no record of the said DIN is available on the ITBA portal and no explanation for this has been offered in the counter affidavit, giving rise to the apprehension that it is not genuine - HELD THAT - In view of the explanation provided by ADIT, ITBA, in its e-mail it is evident that the Section 148 notice sent to the petitioner by speed post as well as the Section 148 notice available on the ITBA portal and sent by email, though bearing distinct DINs are genuine. Pertinently, the contents of the said notices are also identical. The print of the emails comprising of seven (7) pages are taken on record. No cause for initiating any action arises in the present application and the same is disposed of. Period of limitation to issue notice - whether date of issuance of the impugned notices should be considered for the purpose of determining limitation and not the date of preparation or generation? - HELD THAT - This Court finds that there is a disputed question of fact, while the petitioner has produced record indicating that the impugned notice was sent for despatch through speed post on the 2nd of April, 2022, the Department has produced record wherein it is indicated that the notice was sent for despatch through speed post on the 31st of March 2021 itself. Therefore, the matter is disposed of with the direction to the Assessing Officer to verify the records produced by both the parties and determine the date of issuance on the basis of the law laid down in RK Upadhyay 1987 (4) TMI 5 - SUPREME COURT If the AO upon verification finds that the notice under Section 148 was handed over for to the postal office on 31st of March, 2021, for dispatch then the reassessment proceedings would be initiated under the old regime of Section 148 proceedings, i.e., as it stood before the amendment of Finance Act, 2021. Accordingly, the AO is directed to determine the aforesaid date of despatch within four (04) weeks and if such date of issuance is determined to be 31stMarch 2021, thereafter, complete the reassessment proceedings within twelve (12) weeks as per the procedure as its existed prior to amendment. If upon verification, it is determined by the AO that the impugned notice was handed over to the postal office on or after 1st of April, 2021, for despatch the said notice will be construed as notice under Section 148A(b) and the directions of the Honorable Supreme Court in the matter of Union of India v. Ashish Aggarwal, 2022 (5) TMI 240 - SUPREME COURT would apply mutatis mutandis.

Summary

Issues:
1. Discrepancy in Document Identification Numbers (DIN) on Section 148 notices.
2. Validity and legality of notices dated 31st March, 2021 under Section 148 of the Income Tax Act, 1961.

Issue 1: Discrepancy in Document Identification Numbers (DIN) on Section 148 notices:
The petitioner contended that the Section 148 notice sent through Speed Post and the notice on the ITBA Portal had distinct DINs, raising doubts about the authenticity of the notice sent through Speed Post. The Respondent explained that a technical issue during bulk generation caused the discrepancy in DINs. The ITBA confirmed the genuineness of both notices, stating that the contents were identical. The court found no cause for action based on this explanation and disposed of the application.

Issue 2: Validity and legality of notices dated 31st March, 2021 under Section 148:
The petitioner challenged the validity of notices issued under Section 148 for AY 2013-14, citing discrepancies in the dates of issuance and service. The petitioner argued that the notices were issued without adhering to the limitation period and signature requirements. The Department explained technical issues on the ITBA portal, leading to manual signing and dispatch of notices. The Department contended that the notices were issued when the DIN was generated. The court noted conflicting records on the dispatch date and directed the Assessing Officer to verify and determine the date of issuance based on legal precedent. Reassessment proceedings would depend on whether the notices were dispatched before or after 1st April, 2021, with different implications for the proceedings. The petition and pending applications were disposed of with specific directions to the Assessing Officer.

In conclusion, the judgment addressed the discrepancies in DINs on Section 148 notices and the validity of notices dated 31st March, 2021 under Section 148 of the Income Tax Act, 1961. The court provided detailed analysis, considered legal arguments, and issued specific directions to the Assessing Officer based on the verification of records and legal principles.