Chandanam Sangaih & Son Vs ITO (ITAT Visakhapatnam)
Section 148 Notice Dispatched After 01.04.2021 — Reassessment Quashed for Non-Compliance with Section 148A
The Visakhapatnam Bench of the ITAT quashed the reassessment for AY 2017–18 holding that the notice under Section 148, though dated 29.03.2021, was issued only on 08.04.2021, being the date of dispatch through speed post, and therefore governed by the post-Finance Act, 2021 reassessment regime. Relying on Kanubhai M. Patel (HUF) v. Hiren Bhatt, the Tribunal reiterated that the date of issuance is the date of handing over to postal authorities and not the date of signing. Since the notice was issued after 01.04.2021, it could only be treated as a deemed show-cause notice under Section 148A(b) in terms of UOI v. Ashish Agarwal. However, the Assessing Officer failed to follow the mandatory procedure under Sections 148A(b) and 148A(d) and did not issue a fresh notice under the new law. Relying also on Suman Jeet Agarwal v. ITO (Delhi HC), the Tribunal held the reassessment under Section 147 read with Section 144 to be without jurisdiction and void ab initio, and accordingly quashed it.
FULL TEXT OF THE ORDER OF ITAT VISAKHAPATNAM
1. The assessee has filed the present appeal against the impugned order dated 14.07.2025, passed under section 250 of the Income Tax Act, 1961 (in short ‘Act’) by the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal centre, Delhi [hereinafter in short “Ld.CIT(A)”], for the A.Y. 2017-18.
