Jose Kattadyil Joseph Vs ACIT-19(1) (Bombay High Court)
The Bombay High Court heard a writ petition challenging a notice dated 31.03.2021 issued under Section 148 of the Income Tax Act, 1961, and the consequential assessment order dated 29.03.2022. The petitioner contended that although the notice bore the date 31.03.2021, it was digitally signed and therefore issued only on 01.04.2021. Since the Finance Act, 2021 came into force on 01.04.2021, the petitioner argued that the reassessment proceedings could not continue under the unamended provisions of Section 148 and were required to comply with the substituted reassessment regime.
The Court examined the impugned notice and found that it was digitally signed on 01.04.2021. The notice itself stated that where it was digitally signed, the date of the digital signature would be treated as the date of the document. The Revenue did not dispute that the notice was digitally signed on 01.04.2021. The Court therefore held that the Revenue could not proceed under the unamended provisions of Section 148.
The Court noted that the Supreme Court in Union of India & Ors v/s Ashish Agarwal (444 ITR 1) had held that notices issued on or after 01.04.2021 under the unamended Section 148 would be deemed to have been issued under Section 148A as substituted by the Finance Act, 2021 and treated as show cause notices under Section 148A(b). The Supreme Court had also dispensed, as a one-time measure, with the requirement of conducting an enquiry under Section 148A(a) with prior approval in respect of such notices. It further directed that the Assessing Officer should provide the information and material relied upon, pass an order under Section 148A(d) after following the prescribed procedure, and thereafter issue a notice under the substituted Section 148, if warranted. The Supreme Court also clarified that all defences available to the assessee under Section 149, the Finance Act, 2021, and law, as well as the Revenue’s rights, would remain available, and that its decision would govern pending writ petitions involving similar notices.
