Electronic issuance of reassessment notice on 01.04.2021 made section 148A compliance mandatory, invalidating the reopening.

A 26-day delay in filing the appeal was condoned on a liberal, justice-oriented assessment, as the explanation was supported by affidavit and showed no deliberate inaction or mala fides. On reassessment, the electronic record showed that the notice under section 148 was actually communicated by email on 01.04.2021; mere generation or portal dispatch on 31.03.2021 did not amount to issuance. As the substituted reassessment regime applied from 01.04.2021, prior compliance with section 148A was mandatory. Because that procedure was not followed, the reassessment proceedings suffered from a jurisdictional defect and the reassessment orders could not be sustained.

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Issues: (i) Whether the delay of 26 days in filing the appeal deserved condonation; (ii) whether the notice under section 148 of the Income-tax Act, 1961 was issued on 01.04.2021 and, if so, whether reassessment without compliance with section 148A of the Income-tax Act, 1961 was valid.

Issue (i): Whether the delay of 26 days in filing the appeal deserved condonation.

Analysis: The explanation for delay was supported by affidavit and was based on the assessee's inability to understand the email communication, referral to an auditor, and illness with age-related ailments. The delay was short and there was nothing to indicate deliberate inaction or mala fides. A liberal and justice-oriented approach was adopted in considering the request for condonation.

Conclusion: The delay was condoned and the appeal was admitted.

Issue (ii): Whether the notice under section 148 of the Income-tax Act, 1961 was issued on 01.04.2021 and, if so, whether reassessment without compliance with section 148A of the Income-tax Act, 1961 was valid.

Analysis: The electronic trail showed that the notice was communicated by email on 01.04.2021, and mere generation or dispatch on the portal on 31.03.2021 did not complete issuance. The substituted reassessment regime introduced with effect from 01.04.2021 applied once the notice was treated as issued on that date. Compliance with section 148A was therefore mandatory before issuance of a notice under section 148. As that procedure had not been followed, the reassessment proceedings suffered from a jurisdictional defect.

Conclusion: The notice was treated as issued on 01.04.2021 and was invalid for non-compliance with section 148A of the Income-tax Act, 1961.

Final Conclusion: The reassessment orders could not be sustained, and the assessees succeeded on the legal ground; the remaining grounds were left open.

Ratio Decidendi: For reassessment proceedings under the substituted regime, the date of actual electronic communication determines issuance of notice, and a notice issued on or after 01.04.2021 without prior compliance with section 148A is invalid.

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