Chitra Lekha Gupta Vs ITO (ITAT Delhi)
Delhi ITAT Quashes Reassessment: Section 148 Notice Emailed on 1 April 2021 Governed by New Reassessment Regime
The Delhi ITAT held that a notice under Section 148, though dated 31 March 2021, was actually issued on 1 April 2021 when it was dispatched by email. Therefore, the reassessment was governed by the amended Sections 147 to 151, including the mandatory procedure under Section 148A, and not by the old provisions.
The Tribunal noted that the Assessing Officer had completed the reassessment on 25 March 2022 under the old regime, whereas the original notice ought to have been treated as a show-cause notice under Section 148A(b) in accordance with the Supreme Court’s decision in Union of India v. Ashish Agarwal. Significantly, the subsequent proceedings under Section 148A were themselves dropped after recording that the alleged escaped income was below ₹50 lakh and did not satisfy the statutory conditions for reopening.
Following the Delhi High Court’s decision in Rajesh Chopra and the coordinate-bench ruling in Aseem Sehgal, the ITAT held that the date of dispatch of the email constitutes the date of issuance; mere generation of the notice or DIN on 31 March 2021 does not amount to issuance. Consequently, the reassessment framed without following the new statutory procedure was declared bad in law and void ab initio, and the assessee’s appeal was partly allowed.
List of Cases Discussed / Relied Upon
- Union of India vs Ashish Agarwal, 444 ITR 1 (SC) — held that notices issued under the old reassessment regime after 01.04.2021 were to be treated in accordance with the substituted provisions, including as show-cause notices under Section 148A(b), with the prescribed new procedure to be followed.
- Aseem Sehgal vs ITO, ITA Nos. 154 to 156/Del/2025 dated 30-7-2025 — coordinate-bench decision holding that a notice dated 31.03.2021 but emailed on 01.04.2021 attracted the amended reassessment provisions and that reassessment framed under the old provisions was bad in law and void ab initio.
- Rajesh Chopra vs ITO, 2025 (6) TMI 83 (Del HC), W.P. (C) 12561/2022 dated 28-5-2025 — held that where notice is sent electronically, the date of dispatch of the email is the date of issue.
- Suman Jeet Agarwal v. Income Tax Officer and Ors., (2022) 449 ITR 517 — considered the meaning of “issued” and held that issuance requires due dispatch; where notice is sent electronically, the date of dispatch is relevant for determining the date of issue.
FULL TEXT OF THE ORDER OF ITAT DELHI
