Shreenath Finstock Private Ltd. Vs Union of India & Ors (Bombay High Court)
Material Facts
The petitioner challenged a notice dated 31 March 2021 issued under Section 148 of the Income-tax Act, 1961 and the consequent assessment order dated 30 March 2022 passed under Section 147 read with Section 144B for Assessment Year 2013-14. The petitioner contended that although the notice was dated and digitally signed on 31 March 2021, it was received only through an email sent on 1 April 2021 at 5:51 a.m. According to the petitioner, the reassessment proceedings therefore could not continue under the unamended provisions of Section 148 and had to comply with the provisions introduced by the Finance Act, 2021 with effect from 1 April 2021.
Procedural History
The Court directed the Revenue to clarify the date on which the email dispatching the impugned notice was triggered in the Department’s system and restrained coercive action in the meantime. Pursuant to the Court’s directions, the Revenue produced written instructions stating that the ITBA system delivery report reflected the “Notice Sent” timestamp as 1 April 2021 at 05:51:42 a.m. and the “Delivered” timestamp as 1 April 2021 at 05:51:47 a.m.
Legal Issues
- Whether a notice dated and digitally signed on 31 March 2021, but dispatched and received through the ITBA system on 1 April 2021, was to be treated as issued on 31 March 2021or 1 April 2021.
- Whether the reassessment proceedings were required to follow the procedure introduced by the Finance Act, 2021, including Section 148A.
Relevant Statutory Provisions
- Sections 147, 148, 148A(a), 148A(b), 148A(d), 149, and 144Bof the Income-tax Act, 1961.
- Finance Act, 2021.
Parties’ Submissions
