Milind Dashrath Pawar Vs National Faceless Assessment Centre (Bombay High Court)
Assessment Order Comes Into Effect Only Upon Signing, Not Drafting; Time-Barred Reassessment Quashed: Bombay HC
The Bombay High Court allowed a writ petition challenging an assessment order passed under Sections 147, 144 and 144B of the Income-tax Act, 1961 for AY 2014-15 on the ground of limitation.
The assessment was reopened through a notice under Section 148 dated 17.07.2019. The petitioner contended that although the assessment order bore the date 13.04.2022, it was digitally signed and served only on 26.05.2022 and was therefore barred by limitation. The petitioner relied on Section 153(2), the extension granted under the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (TOLA), the reference made to the Valuation Officer under Section 142A, and Explanation 1 to Section 153 to compute the limitation period.
The Revenue submitted that the valuation report dated 16.02.2022 was received by the Assessing Officer on 25.02.2022 and argued that the assessment order was dated 13.04.2022 with a valid DIN, though digitally signed on 26.05.2022.
The High Court held that, based on the admitted date of receipt of the valuation report, the extended limitation period expired on 26.04.2022. It observed that the date mentioned on the assessment order was of no consequence when the order was actually signed on 26.05.2022. The Court held that an assessment order comes into operation only upon its signing and not on the date on which it is prepared.
