Reassessment Notice is said to be issued on date when e-mail is sent & not on date when e-mail is received: HC

Case Details: Malavika Enterprises v. Central Board of Direct Taxes - [2022] 137 taxmann.com 398 (Madras)

Judiciary and Counsel Details

• • Munishwar Nath Bhandari, CJ. and D. Bharatha Chakravarthy, J.
  • V.S. Jayakumar for the Petitioner.
  • Mrs. Hemamuralikrishnan, Sr. Standing Counsel and Prabhu Mukund Arunkumar, A.P. Srinivas, Sr. Standing Counsel and A.N.R. Jayaprathap for the Respondent.

Thus, the assessee contended that notice issued after 31/03/2021 under old provisions of Section 148 was liable to be set aside.

High Court Held

The Madras High Court ruled that section 282 stipulates the manner of service of notice and Section 282A prescribes the form of issuance of such notice, i.e., signed and issued in paper form or communicated in electronic form. Further, Rule 127A of the Income Tax Rules, 1962 states the authentication of notices and other documents.

The assessee raised the issue about the receipt of the notice on the day after 31/03/2021 without explaining that the requirement of provisions is for the issuance of notice and not of the receipt of the notice.

Further, the assessee could not bring any fact on record to show that notice under Section 148 was not issued by the electronic mode, i.e., by email, on 31.3.2021 and, that too, when the fact regarding the digital signature of the authority could not be disputed.
Accordingly, it was not a case where a notice under Section 148 was issued on or after 01/04/2021, rather it was issued before the date aforesaid. Thus, the same was to be held as legally valid.