INFINITY INTERNATIONAL,AHMEDABAD vs. NFAC, DELHI PRESENT JURIS. THE ITO, WARD-3(3)(1), AHMEDABAD
Facts
The assessee, Infinity International, filed appeals against orders from the Ld. CIT(A) for Assessment Years 2014-15 and 2015-16. The core dispute centered on the validity of assessment orders passed under Section 143(3) read with Section 147 of the Income Tax Act, 1961, specifically challenging whether the notices issued under Section 148 for these assessment years were valid, as they lacked digital or manual signatures.
Held
The Tribunal, relying on judgments from the Hon'ble High Courts of Karnataka and Bombay, held that notices issued under Section 148 of the Income Tax Act without a digital or manual signature are invalid and do not confer jurisdiction on the Assessing Officer. Since the Revenue admitted that the notices for AYs 2014-15 and 2015-16 did not bear visible digital signatures, these notices were deemed void ab initio, and consequently, the assessment orders based on them were also quashed.
Key Issues
Whether notices issued under Section 148 of the Income Tax Act, 1961 for assessment years 2014-15 and 2015-16 are valid if they lack a digital or manual signature of the issuing authority, and consequently, whether assessment orders passed based on such unsigned notices are void ab initio.
Sections Cited
Section 250 of the Income-tax Act, 1961, Section 143(3) of the Income-tax Act, 1961, Section 147 of the Income-tax Act, 1961, Section 148 of the Income-tax Act, 1961, Section 148A of the Income-tax Act, 1961, Section 148A(b) of the Income-tax Act, 1961, Section 148A(d) of the Income-tax Act, 1961, Section 292B of the Income-tax Act, 1961, Section 144 of the Income-tax Act, 1961
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “A” BENCH, AHMEDABAD
Before: DR. B.R.R. KUMAR, VICE-SHRI SIDDHARTHA NAUTIYAL
The petition is allowed and the impugned notice dated 17.03.2022 issued by the first respondent under Section 148A(b) of the Income Tax Act, 1961 [Annexure-A], the subsequent adjudication order dated 30.03.2022 under Section 148A(d) [Annexure-A1] of the IT Act, the notice dated 31.03.2022 under Section 148 of the IT Act [Annexure-A2], the assessment order dated 24.02.2023 under Section 147 read with Section 144 of the IT Act [Annexure-A3] and the consequential penalty orders and demand notices dated 24.08.2023 and 07.07.2023 [Annexures-A4, A5 and A6] are quashed."
Under these circumstances, the present petition also deserves to be disposed of in terms of the aforesaid judgment of the Co-ordinate Bench of this Court.
In the result, I pass the following:
ORDER (i) The petition is allowed. (ii) The impugned orders/notices at Annexure-A1, A2, A3, A4, A5,, A6, A7, A8, A9, B1, B2 and B3 dated 21.03.2023, 21.03.2023, 21.03.2023, 21.09.2023, 21.09.2023, 21.09.2023, 25.09.2023, 25.09.2023, 25,09.2023, 14.03.2022, 26.03.2022 and 27.03.2022, respectively are hereby quashed.”
We are also guided by the judgement of the Hon’ble Bombay High Court in the case of Prakash Krishnavtar Bhardwaj Vs. ITO, 451 ITR 27. The operative portion of the said judgement reads as under:-
ITA Nos. 462 & 517/Ahd/2025 Infinity International Vs. ITO Asst. Year : 2014-15 & 2015-16 - 6–
“… 18. Sky Light Hospitality (supra) cited by the respondents was also not a case where the notice issued to the assessee was unsigned. That was a case where the notice u/s.148 was issued with a signature, but the address of the assessee was only partly correct. It was in that context that the Delhi High Court has held that the provisions of section 292B of the Act, where there was a mistake, defect or an omission in the complete address on which the notice was issued to the assessee, would cure such defect, and an objection to the validity of the notice could not be raised. In that fact of the matter, the judgment in Sky Light Hospitality (supra) would not be applicable to the facts of the present case, which is one where the signature of the Assessing Officer was not affixed on the notice.
Applying the ratio of the judgment of the Calcutta High Court in B.K. Gooyee and Aparna Agency (P.) Ltd. (supra) to the facts of the present case, the signature of the Assessing Officer admittedly not having been affixed on the notice issued u/s.148 of the Act, the notice itself would be invalid and consequently, the Assessing Officer could not assume jurisdiction to proceed in the matter in terms of section 148 of the Act. The Madhya Pradesh High Court in Umashankar Mishra (supra) has dealt with a similar fact situation where the first substantial question of law dealt with in that case had considered the effect of whether an unsigned notice can be considered as an irregularity or clerical mistake. The Madhya Pradesh High Court after making reference to the conclusions drawn in B.K. Gooyee (supra) by the Calcutta High Court, has taken the view, that a notice without a signature affixed on it is an invalid notice and is effectively no notice in the eyes of law.
The Madhya Pradesh High Court in Umashankar (supra) has further dealt with the second substantial question of law as to whether the Tribunal was right in holding that the absence of a signature on the notice constitutes a mistake or omission within the meaning of section 292B of the Act and while addressing itself to that question, has concluded that in the absence of a signature on the notice, the same would not constitute a mistake or omission and would not be curable under the provisions of section 292B of the Act.
We are, therefore, of the considered opinion that in the present case, the notice u/s.148 dated 02.04.2022 having no signature affixed on it, digitally or manually, the same is invalid and would not vest the Assessing Officer with any further jurisdiction to proceed to reassess the income of the petitioner. Consequently, the notice dated 02.04.2022 u/s.148 of the Act issued to the petitioner being invalid and sought to be issued after three years from the end of the relevant assessment year 2015-16 with which we are concerned in this petition, any steps taken by the respondents in furtherance of notice dated 21.03.2022 issued under clause (b) of section 148A of the Act and order dated 02.04.2022 issued under clause (d) of section 148A of the Act, would be without jurisdiction, and therefore, arbitrary and contrary to Article 14 of the Constitution of India. Consequently, we quash and set aside the notice dated 02.04.2022 issued by the respondents u/s.148 of the Act, order dated 02.04.2022 under clause (b) of section 148A of the Act and notice dated 21.03.2022 issued under clause (b) of section 148A of the Act.”
ITA Nos. 462 & 517/Ahd/2025 Infinity International Vs. ITO Asst. Year : 2014-15 & 2015-16 - 7–
Keeping in view the ratio laid down by the Hon’ble High Courts and since the factum that the notices issued were not digitally signed is not in dispute as acknowledged by the Revenue, the notices issued u/s 148 of the Act would not vest the Assessing Officer with any further jurisdiction to proceed to reassess the assessments. Hence, the Assessments Orders passed for AYs 2014-15 & 2015-16 are hereby treated as void ab initio.
In the result, both the appeals filed by the assessee are allowed.
The order is dictated and pronounced in the open Court today on 07.01.2026
Sd/- Sd/- (SIDDHARTHA NAUTIYAL) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT Ahmedabad; Dated 07.01.2026 *btk आदेश की �ितिलिप अ�ेिषत/Copy of the Order forwarded to : अपीलाथ� / The Appellant 1. ��थ� / The Respondent. 2. संबंिधत आयकर आयु� / Concerned CIT 3. आयकर आयु�(अपील) / The CIT(A)- 4. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 5. गाड� फाईल / Guard file. 6. आदेशानुसार/ BY ORDER, TRUE COPY सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad
Date of dictation ….dictated in the open court on..07.01.2025……….. 2. Date on which the typed draft is placed before the Dictating Member ….07.01.2025 3. Other Member …….07.01.2025 4. Date on which the approved draft comes to the Sr.P.S./P.S …...07.01.2025 5. Date on which the fair order is placed before the Dictating Member for pronouncement …...07.01.2025 6. Date on which the fair order comes back to the Sr.P.S./P.S …….07.01.2025 7. Date on which the file goes to the Bench Clerk ……..07.01.2025 8. Date on which the file goes to the Head Clerk…………………………………... 9. The date on which the file goes to the Assistant Registrar for signature on the order 10. Date of Dispatch of the Order………………
