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TMI Blog2023 (12) TMI 538X X X X Extracts X X X X X X X X Extracts X X X X ..... 3 passed by the ld. Commissioner of Income-tax, Appeals, NFAC, Delhi [hereinafter referred to as the ld. CIT(A) ]. The assessee has raised the following grounds of appeal: 1. (a) For that the re-assessment order dated 26.12.2016 framed u/s 144/147 is void and nullity in the eyes of law as the same is barred by limitation. (b) For that the ld. CIT(A) ought to have quashed the entire re-assessment proceedings since the notice u/s 148 was issued after expiry of 6 years from the end of the relevant assessment year. 2. For that the recorded reasons are invalid and improper and as such the re- assessment framed vide order dated 26.12.2016 is bad in the eyes of law. 3. For that the ld. CIT(A) was not justified in confirming the addition of Rs. 10,19,518/- made by the AO on account of alleged bogus loss. 4. The appellant craves leave to add further grounds of appeal or alter the grounds at the time of hearing. 2. Assessee is a private limited company engaged in the business of trading of shares and securities earning its income of Rs. 17,231/- for A.Y. 2009-10. Subsequently, the ld. AO received information that the assessee has taken contrived losses of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ived by the appellant through e-mail only on 18.04.2018 i.e., after the expiry of six years from the end of the assessment year under consideration and hence, the same is clearly barred by limitation, whereas the department contended that mere signing of notice by the respondent on 31.03.2018 amounts to issuance of notice under section 149 of the Act and therefore, the same is within the limitation period. 9. To appreciate the rival contentions, it is but relevant to look into the relevant provisions of law viz., section 149 of the Act, which reads as under: Time limit for notice 149(1). No notice under section 148 shall be issued for the relevant assessment year - (a) if four years have elapsed from the end of the relevant assessment year, unless the case falls under clause (b); (b) if four years, but not more than six years, have elapsed from the end of the relevant assessment year unless the income chargeable to tax which has escaped assessment amounts to or is likely to amount to one lakh rupees or more for that year. Explanation In determining income chargeable to tax which has escaped assessment for the purposes of this sub-section, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the concept of reasonableness , the acceptance or otherwise of a plea of substantial compliance depends upon the facts and circumstances of each case and the purpose and object to be achieved in the context of the prerequisites which are essential to achieve the object and purpose of the rule or regulation. Such a defence cannot be pleaded if a clear statutory prerequisite which effectuate the object and the scope of the statute has not been met. Certainly, it means that the court would determine whether the statute has been followed sufficiently so as to carry out the intent for which the statute was enacted and not a mirror image type of strict compliance. Substantial compliance means actual compliance in respect to the substance essential to every reasonable object of the statute and the court should determine whether the statute has been followed sufficiently so as to carry out the intent of the statute and accomplish the reasonable objectives for which it was passed. 33. A fiscal statute generally seeks to preserve the need to comply strictly with regulatory requirements that are important, especially when a party seeks the benefits of an exemption clause that are i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atch would be the date of issue of the notices. Whereas, on behalf of the revenue, it has been contended that the notices were actually signed on 31.03.2010, hence, the said date would be the date of issue and as such, the impugned notices have been issued within the time limit prescribed under Section 149 of the Act. 14. In the background of the aforesaid facts and contentions, the core issue that arises for consideration is as to when can the notice under Section 148 of the Act be said to have been issued. In this context, it would be necessary to examine the true import of the expression shall be issued as employed in section 149 of the Act. 15. The expression 'issue' has been defined in Black's Law Dictionary to mean To send forth; to emit; to promulgate; as, an officer issues orders, process issues from court. To put into circulation; as, the treasury issues notes. To send out, to send out officially; to deliver, for use, or authoritatively; to go forth as authoritative or binding. When used with reference to writs, process, and the like, the term is ordinarily construed as importing delivery to the proper persons, or to the proper officer for servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 07.04.2010 and not 31.03.2010, as contended on behalf of the revenue. In the circumstances, impugned the notices under Section 148 in relation to assessment year 2003-04, having been issued on 07.04.2010, which is clearly beyond the period of six years from the end of the relevant assessment year, are clearly barred by limitation and as such, cannot be sustained. Thus, it is apparent from the aforesaid decisions that the issuance of notice under section 149 is complete only when the same is issued in the manner as prescribed under section 282 r/w rule 127 of the Income Tax Rules prescribing the mode of service of notice under the Act. The signing of notice would not amount to issuance of notice as contemplated under section 149 of the Act. In other words, the requirement of issuance of notice under section 149 is not mere signing of the notice under section 148, but is sent to the proper person within the end of the relevant assessment year. 13. Concededly, the notice dated 31.03.2018 issued by the respondent was served on the appellant through mail, only on 18.04.2018. Though the learned senior panel counsel appearing for the respondent produced the relevant pages o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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