Court sets aside late notice under Income Tax Act, emphasizing adherence to timelines.

The Court set aside the notice issued under Section 148 of the Income Tax Act, finding it barred by limitation due to delayed delivery, despite the respondent's technical glitch explanation. Emphasizing adherence to statutory timelines, the Court ruled in favor of the petitioner, disposing of the Writ Petition and instructing parties to comply with the digitally signed order. This case underscores the significance of meeting procedural requirements and timely service of notices to ensure the validity and fairness of tax proceedings.

---

---

Issues:
Challenging notice under Section 148 of the Income Tax Act, 1961 as per the new regime introduced by the Finance Act, 2021; Barred by limitation; Validity of notice issued under the erstwhile Section 148 of the Act; Date of service of the impugned notice.

Analysis:
The Writ Petition challenged a notice issued under Section 148 of the Income Tax Act, 1961, dated 30.06.2021, received by the petitioner on 16.07.2021, for Assessment Year 2013-14, arguing it was not in accordance with the new regime introduced by the Finance Act, 2021 and was barred by limitation. An order was passed against the petitioner based on this notice. The petitioner contended that the notice was served after the time period available for issuing such notices had expired, relying on previous judgments. The respondent argued that the notice was issued on 30.06.2021, as evidenced by the Document Identification Number (DIN) and a technical glitch caused the delay in delivery.

The Court considered the evidence of the date and time stamp on the email sent to the petitioner, confirming the delivery of the notice on 16.07.2021, despite being dated 30.06.2021. The respondent failed to provide any other document proving the delivery before 16.07.2021. The Court agreed with the petitioner's argument that the notice was indeed barred by limitation, in line with previous judgments on similar matters.

Consequently, the Court set aside the impugned notice issued under Section 148 of the Act, disposing of the Writ Petition accordingly. The parties were instructed to act based on the digitally signed copy of the order.

This judgment highlights the importance of adherence to statutory timelines for issuing notices under the Income Tax Act, ensuring that procedural requirements are met to maintain the validity of such notices. The Court's decision emphasized the need for proper documentation and timely service of notices to uphold the principles of legality and procedural fairness in tax proceedings.

---