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Judgment
PER ANUBHAV SHARMA, JM:
This appeal is preferred by the assessee against the order dated 11.06.2024 of the Ld. National Faceless Appeal Centre (NFAC), Delhi (hereinafter referred as Ld. First Appellate Authority or in short Ld. ‘FAA’) in DIN & Order No: ITBA/NFAC/S/250/2024-25/1065539663(1) arising out of the assessment order dated 01.03.2022 u/s 147 r.w.s 144B of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) passed by the National Faceless Assessment Centre, Delhifor AY: 2013-14.
On hearing both sides we find that assessee has raised an additional ground of appeal that the notice u/s 148 of the Act, is barred by limitation and mandatory compliance of procedure prescribed u/s 148A of the Act has not been done thereby rendering entire reassessment proceedings void-ab-initio. As the ground raised is legal and can be decided on admitted facts, we admit the same.
Coming to the merits of grounds, we find that the issue is of addition made as unexplained income for AY: 2013-14 arising out of reassessment order us/ 147 r.w.s 143(3) of the Act. At page No. 1 assessee has provided copy of notice u/s 148 of the Act issued on 31.03.2021 and at page No. 2-4 screen shots of the ITBA Portal substantiating that the notice u/s 148 of the Act is dated 31.03.2021, however, issued and communicated to assessee on 16.04.2021.These assertions could not be disputed by the revenue by any evidence to the contrary.
Thus, the time limit was issuance of notice under the old regime was up to 31.03.2021 but it appears that notice was served upon the assessee after 31.03.2021 and that should have been under the new regime which has come into effect from 01.04.2021 as per the Finance Act, 2021. In similar circumstances where notice was dispatched on order after 01.04.2021, the Hon’ble Delhi High Court has held that merely generation of notice u/s 148 on ITBA software is not sufficient and dispatch his necessary to sustain the proceedings under old regime. Accordingly, Hon’ble Delhi High Court in Suman Jeet Agarwal Vs. ITO (2022) 143 taxmann.com 11 (Delhi) has found the proceedings to be vitiated and accordingly following the judicial principal we sustain the additional ground. Appeal is allowed and the impugned reassessment order is quashed.
The appeal of the assessee is allowed and the impugned reassessment proceeding is quashed.