Date of digital signature and issuance determines the date of a notice u/s148 of the Income Tax Act – ITAT
In a recent judgment, ITAT Chennai has held that date of digital signature and issuance determines the date of a notice u/s148 of the Income Tax Act, 1961 (the Act).
ABCAUS Case Law Citation:
4979 (2026) (01) abcaus.in ITAT
In the instant case, the assessee had challenged the order(s) for three Assessment Years passed by the CIT(A), National Faceless Appeal Centre (AO) u/s.147 r.w.s 144 of the Act.
In the lead case, the return of the appellant assessee was processed u/s.143(1) of the Act. Subsequently, a search and seizure operation u/s.132 of the Act was conducted in the case of the assessee’s husband.
In the course of the said proceedings, it was noticed that various credits had been recorded in the bank account of the assessee, which, according to the Department, required protective assessment in her hands.
During the re-assessment proceedings, it was observed by the AO that the assessee did not respond to the statutory notices issued. The AO, therefore, proceeded to frame the assessment ex parte u/s.147 r.w.s 144 of the Act.
The CIT(A) dismissed the appeal of the assessee in limine on the ground that the same was time-barred and had been filed beyond the period of limitation prescribed under the Act.
Before the Tribunal the assessee inter alia raised the ground relating to validity of the notice u/s.148 of the Act which was pre-dated but was digitally signed and issued by the JAO on the next day.
It was contended that the notice issued u/s.148 of the Act, though bear the date 31.03.2021, the same was digitally signed and actually issued on 01.04.2021 on the ITBA portal. According to the assessee, the date of digital signature as well as the date of issuance on the ITBA system constitute the determinative factors for ascertaining the date of notice. It was therefore argued that, since the notice was issued on or after 01.04.2021, the AO was mandatorily required to comply with the procedure prescribed u/s.148A of the Act, introduced by the Finance Act, 2021.
The Tribunal noted that on identical facts, the Hon’ble Delhi High Court had categorically held that the date of the digital signature constitutes the date of issuance of the notice.
The Tribunal also noted that following the judgment of the Hon’ble Delhi High Court, the Hon’ble Telangana High Court held that impugned notices were barred by limitation under Sections 148 and 149 of the Act, since the said notices have left the I.T.B.A. portal on or after 01.04.2021.
The Tribunal further noted that Special Leave Petition preferred by the Revenue against the aforesaid decision had already been dismissed by the Hon’ble Supreme Court. Accordingly, the legal position on this issue now stands concluded by the Hon’ble Apex Court.
The Tribunal also took a note that Co-ordinate Bench of the Tribunalhad quashed the reassessment proceedings initiated pursuant to a notice issued u/s.148 of the Act through the ITBA portal on 01.04.2021.
Following the law laid by Hon’ble Supreme Court and Hon’ble High Court, the Tribunal held that there is no ambiguity in law that the date of digital signature and issuance determines the date of a notice u/s.148 of the Act. Therefore, notices digitally signed/issued on or after 01.04.2021 are to be construed as falling within the substituted scheme of reassessment introduced by the Finance Act, 2021, and therefore must necessarily undergo scrutiny u/s.148A of the Act.
The Tribunal held that the said notice was void ab initio and incapable of conferring any valid jurisdiction upon the AO and was accordingly quashed.
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