SGA Infotech Private Limited Vs ACIT (ITAT Delhi)
ITAT Delhi Quashes Reassessment for Non-Compliance with Amended section 148/148A—Notice Issued on 01.04.2021 Held Invalid
In this appeal, SGA Infotech Pvt Ltd challenged the reassessment framed u/s 147 pursuant to a notice u/s 148 that was digitally signed on 31.03.2021 but, as evidenced on page 99 of the paper book (reflected on the ITBA portal), was issued on 01.04.2021.
The Assessee contended that once the notice stood “issued” on 01.04.2021, the amended regime of sections 148 & 148A (introduced by Finance Act 2021 w.e.f. 01.04.2021) mandatorily applied. The AO, however, followed the old pre-amendment procedure & failed to conduct enquiry u/s 148A(a), failed to issue show-cause u/s 148A(b), & failed to pass an order u/s 148A(d) before issuing the notice u/s 148—rendering the entire reassessment void. Reliance was placed on Suman Jeet Agarwal v. ITO (449 ITR 517, Del) & Aseem Sehegal (ITA 154-156/Del/2025).
Tribunal examined the notice on record (page 98) showing digital signature dated 31.03.2021 & the ITBA portal record (page 99) showing issue date as 01.04.2021. Since the Department could not produce any evidence that the notice was “issued” on 31.03.2021, Tribunal held that the relevant date for legal validity was 01.04.2021, bringing the case squarely within the ambit of amended sections 148 & 148A, as clarified by the Supreme Court in Ashish Agarwal (138 taxmann.com 64).
Holding that the AO had proceeded entirely under the old law, without following any of the mandatory steps prescribed by the amended regime, Tribunal concluded that the reassessment order dated 29.03.2022 was bad in law, void ab initio & unsustainable. Since reassessment itself failed, Tribunal did not examine other legal or factual grounds, including the addition of ₹90,00,000 u/s 68.
The appeal of the Assessee was accordingly allowed, & the reassessment stood quashed.
FULL TEXT OF THE ORDER OF ITAT DELHI
