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Facts
The Revenue appealed against an order of the NFAC, while the assessee filed a Cross Objection. The assessee's primary ground was that the assessment order was invalid due to a time-barred notice under Section 148 of the Income Tax Act.
Held
The Tribunal found that the notice under Section 148 of the Act, served via email on 01.04.2021 at 7:06 AM, was indeed time-barred. Consequently, the assessment order was liable to be quashed.
Key Issues
Whether the notice under Section 148 of the Income Tax Act, served electronically, was issued within the prescribed limitation period.
Sections Cited
147, 144B, 148, 282(1)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “A” BENCH, DELHI
Before: SHRI ANUBHAV SHARMA & SHRI MANISH AGARWAL
This appeal is preferred by the Revenue and Cross Objection filed by the assessee against the order dated 09.08.2024 of the Ld. National Faceless Appeal Centre (NFAC) (hereinafter referred as Ld. First Appellate Authority or in short Ld. ‘FAA’) in DIN & Order No: ITBA/NFAC/S/250/2024- 25/1067495496(1) arising out of the order dated 30.03.2022 passed u/s 147 r.w.s 144B of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) by the ITO, Ward 19(3) New Delhi for AY: 2015-16.
On hearing both sides we find that assessee has raised a legal ground No. 1 that the assessment order passed by the AO is invalid as a notice under Section 148 of the Act dated 31.03.2021 is time barred.
Although ld. DR has defended the ground however what is material is that the evidence by way of screen shot of email received by the assessee 19.1 of the paper book goes to show that as on 01.04.2021 at 7:06AM the notice was received by the assessee as an attachment to the computer generated communication. In this email it is mentioned that communication may treated as compliant with the requirement of Income Tax Rules 127 & 127A. Now the same has to be read with Section 282(1) of the Act.
Subsection (1) (c) of Section 282 of the Act provides that a communication may be transmitted in the form of electronic record as provided in Chapter (iv) of Information Technology Act, 2000. Section 13 of the Information Technology Act provides for time and place of dispatch and receipt of electronic record and sub-section (1) provides that “Save as otherwise agreed to between the originator and the addressee, the dispatch of an electronic record occurs when it enters a computer resource outside the control of the originator.”
Thus, when the mail is received by assessee on 01.04.2021 at 7:06AM on through ITBA portal which for all purposes is ‘computer resources’ then the dispatch of the electronic record, i.e the notice attached to mail in PDF, can be considered to be ‘dispatched” on 01.04.2021 at 7:06AM, so as to be was served on the assessee beyond the limitation we are inclined to sustain the legal ground No. 1 raised by the assessee and consequently, the Cross Objection of the assessee is allowed. The assessment order is liable to be quashed. Accordingly, ordered. The appeal of the revenue stands dismissed.
Order pronounced in the open court on 05.12.2025