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Judgment
This appeal by assessee is directed against the order of Commissioner of Income Tax (Appeals), NFAC, Delhi (hereinafter referred to as 'the CIT(A)') dated 29th December, 2025, for assessment year 2015-16.
Shri Shivam Malik appearing on behalf of assessee submits that in ground No.1 of appeal, the assessee has assailed validity of notice under Section 148 of the Income-tax Act, 1961 (hereinafter referred to as 'the Act'). The learned Counsel submits that notice issued by Assessing Officer under Section 148 of the Act is time-barred. He contended that the last date for issuing notice was 31st March, 2022, whereas notice was sent to the assessee on 1st April, 2022. In support of his contention, learned Counsel placed on record a copy of e-mail vide which notice was served on the assessee.
Per contra, Shri Manoj Kumar representing the Department disputed the contentions of learned Counsel for the assessee. The DR referring to the report from Assessing Officer, submits that notice was issued on 31st March, 2022, but was received by assessee on 1st April, 2022. He contended that date of notice is relevant to examine validity of notice with reference to period of limitation. The learned DR placed on record a copy of report from the Assessing Officer alongwith snapshot of ITBA Portal of the Department.
Both sides heard, relevant documents on which rival sides have placed reliance considered. The limited issue in the present appeal for consideration at this stage is, date of issue of notice for the purpose of Section 148 of the Act to examine validity of the notice u/s.148 of the Act. It is an undisputed fact that the limitation for issuing notice under Section 148 of the Act for assessment year 2015-16 is 31st March, 2022. The notice in the present case is dated 31.3.2022. The assessee has assailed validity of notice on the ground that notice was issued/dispatched after the expiry of limitation period i.e. on 01.4.2022, therefore, barred by limitation. The assessee has placed on record a copy of email vide which notice was sent to assessee. On e-mail the date mentioned is '1 April 2022'. The same is extracted herein below:-
[Space left blank]
19/26, 6:11 PM
Yahoo Mail - [ITBA]Notice under section 148 of the Income Tax Act, 1961
[ITBA]Notice under section 148 of the Income Tax Act, 1961
From: [email protected]
Date: Friday, 1 April 2022 at 04:57 am IST
Dear NITIN SINGLA, Please find attached the Notice u/s 148 for PAN:ATFPS2295B and AY:2015-16. Please quote your PAN in all future correspondences.
Note:
- This communication is computer generated and may not contain signature.
- This communication may be treated as compliant with the requirements of Income Tax Rules 127 and 127A.
- Signed copy may be sent separately if not already digitally signed.
- Please quote your PAN in all communications.
- Income Tax Department does not seek any taxpayer information like user name, password, details of ATM, credit cards, etc. Taxpayers are advised not to part with such information on the basis of emails.
ATFPS2295B_Notice us 148_1042400708(1)_31032022.pdf 144.7 kB
nitin.pdf 187.4 kB
To controvert submissions of the assessee, the learned DR had sought time to get a report from the Assessing Officer. Time as prayed for was allowed. The DR has placed on record a report from the Assessing Officer along with screenshot of ITBA Portal indicating date and time on which email containing notice under Section 148 of the Act was sent to assessee and also the date and time of delivery of e-mail. As noted above the date and time of email is 1st April, 2022 at 04.57 am IST. The screenshot of ITBA Portal also reflects the same date and time of sending the e-mail as has been mentioned in email (supra). Thus, it is evident from the email as well as report from Assessing Officer that email containing notice under Section 148 of the Act was sent to the assessee on 1st April, 2022, though the notice was signed on 31st March, 2022. Since the notice left the hands of Assessing Officer after the prescribed period of limitation, the notice is time-barred.
The Hon'ble Gujrat High Court in the case of Rajesh Sunderdas Vaswani vs. DCIT reported as 88 taxmann.com 602 considered a similar dispute i.e. the notice under section 148 of the Act was issued beyond six years from the end of relevant assessment year and therefore, barred by limitation as provided in section 149 of the Act. The stand of the assessee in said case was that though the notice is dated 30.3.2015, the same was not booked for delivery with the postal department before 1.4.2015. Attention of the Bench was drawn to the postal endorsement which showed that the notice was booked for delivery only on 1.4.2015. The Hon'ble High Court observed:
'8. Having heard learned counsel for the parties and having perused the documents on record, regarding the first issue, we may notice that the Division Bench of this Court in the context of issuance of notice for reopening in case of Kanubhai M. Patel (HUF) v. Hiren Bhatt or his successors to office [2011] 12 taxmann.com 198/202 Taxman 99 (mag.)/334 ITR 25 (Guj.) held and observed as under :
'16. Thus, the expression to issue in the context of issuance of notices, writs and process, has been attributed the meaning, to send out; to place in the hands of the proper officer for service. The expression shall be issued as used in section 149 would therefore have to be read in the aforesaid context. In the present case, the impugned notices have been signed on 31.03.2010, whereas the same were sent to the speed post centre for booking only on 07.04.2010. Considering the definition of the word issue, it is apparent that merely signing the notices on 31.03.2010, cannot be equated with issuance of notice as contemplated under section 149 of the Act. The date of issue would be the date on which the same were handed over for service to the proper officer, which in the facts of the present case would be the date on which the said notices were actually handed over to the post office for the purpose of booking for the purpose of effecting service on the petitioners. Till the point of time the envelopes are properly stamped with adequate value of postal stamps, it cannot be stated that the process of issue is complete. In the facts of the present case, the impugned notices having been sent for booking to the Speed Post Centre only on 07.04.2010, the date of issue of the said notices would be 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.
9.Thus the expression "to issue" used in the context of notice referred to in section 149 of the Act, it was interpreted that the date of issue of notice would be the date on which the same was handed over for service to the proper officer i.e. in the present case the postal department. Since the income-tax department is covered by "book now pay later" scheme, the further observation of requirement of properly stamping envelope with adequate postal stamp, would not be germane.
[emphasis supplied]
Though, the said case was decided when the notices were issued by the Department through Postal Authorities, but the underline meaning of expression "issue" used in section 148 and 149 of the Act as explained by Hon'ble Court would remain relevant even now when the notices are sent to the assessee through e-mail. In the present context the notice shall be 'issued' only when the same is emailed i.e. when the notice leaves the hand of Assessing Officer and not when the notice is prepared or signed by the assessing Officer.
Thus, in facts of the case and in light of decision referred above, I hold that the notice u/s148 of the Act in instant case is time barred, hence, without jurisdiction. Any proceedings arising from notice without jurisdiction are vitiated. Accordingly, the impugned assessment order passed consequent to said notice under Section 148 of the Act is also without jurisdiction, hence, liable to be quashed. I hold accordingly.
In the result, appeal of the assessee is allowed.