ACIT, KOLKATA V. TUFAIL AHMED, BIHAR

MA 28/KOL/2025

AI Insights

The case involves a miscellaneous application by the revenue seeking to rectify an order concerning Tufail Ahmed, which was initially decided by the Tribunal in ITA No. 347/Kol/2023 for the assessment year 2014-15. The core issue was the validity of a notice issued under section 148 of the Income Tax Act, 1961, which was found to be issued after the statutory deadline of March 31, 2021. The Tribunal's earlier decision had declared the notice time-barred, leading to the dismissal of the revenue's application. The Tribunal's decision was supported by a relevant High Court judgment that underscored the importance of following the prescribed statutory procedures for issuing such notices.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 712118 (ITAT-KOLKATA)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 25-07-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Assessment Year: 2014-2015
• Other Referred Cases: Marudhar Vintrade Pvt. Ltd. vs. Union of India & Ors., Bagaria Properties and Investment Private Limited & Anr. v. Union of India & Ors., Monoj Jain v. Union of India
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 147; 148

Judgement Text

"आयकर अपीलȣय अͬधकरण, कोलकाता पीठ “सी’’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH: KOLKATA Įी राजेश क ुमार, लेखा सटèय एवं Įी Ĥदȣप क ुमार चौबे, ÛयाǓयक सदèय क े सम¢ [Before Shri Rajesh Kumar, Accountant Member &Shri Pradip Kumar Choubey, Judicial Member] M.A. No. 28/Kol/2025 (Arising out of I.T.A. No. 347/Kol/2023) Assessment Year: 2014-15 ACIT, Circle-2(1), Kolkata Vs. Tufail Ahmed (PAN: AYRPA 6805 G) Appellant / ) अपीलाथȸ ( Respondent / Ĥ×यथȸ Date of Hearing / सुनवाई कȧ Ǔतͬथ 18.07.2025 Date of Pronouncement/ आदेश उɮघोषणा कȧ Ǔतͬथ 25.07.2025 For the assessee / Ǔनधा[ǐरती कȧ ओर से Sh. Tufail Ahmed. For the revenue / राजèव कȧ ओर से Shri S. B. Chakraborthy, Addl. CIT Sr. DR ORDER / आदेश Per Pradip Kumar Choubey, JM: The instant Miscellaneous application has been filed by the revenue to rectify the order passed in the case of Tufail Ahmed in ITA NO. 347/Kol/2025 for AY 2014- 15. The Ld. A.R in its miscellaneous application has submitted the following facts: Printed from counselvise.com 2 M.A. No. 28/Kol/2025 (Arising out of ITA No. 347/Kol/2023) Assessment Year: 2014-15 Tufail Ahmed 1. As per the information available in the ITBA System, the notice u/s 148 of the act was digitally issued on 31.03.2021 i.e. on the last date of limitation read with section 149 of the Act. (Annexure-1). 2. This notice w's 148 was sent on assessee's registered email through ITBA system and through speed post as well. The assessee had made submissions later during the proceedings and never challenged the legal validity of the proceedings before the AO. 3. Section 282A(1) of the Act prescribes that the sign and issue in paper format or communication in electronic format the authority shall be in accordance with such procedure as may be prescribed. Section 282A(2) further provides that if the name and office of the designated income-tax authority are printed, stamped or otherwise written on any notice or document by any income-tax authority, the same shall be deemed to be authenticated. 2. Contrary to that the Ld. A.R submits that there is no infirmity in the impugned order as the order passed on the various judicial pronouncements. 3. Upon hearing the submission of the counsel of the respective parties, we have perused the order passed by the Tribunal in ITA No. 347/Kol/2023 and find that the Tribunal has held thus: “4. Since the appellant has raised legal question, so the Tribunal has to decide the legal issue first. It is clear case of the assessee that the return of income for the AY 2014-15 was filed by the assessee in response to the notice u/s 148 of the Act. The assessee has filed the screenshot of the e-proceeding tab for issuance of notice that goes to reveal that it was issued on 01.04.2021. It is important to mention here that notices must be issued before 31.03.2021. But the screenshot clearly establishes this fact that notices have been issued on 01.04.2021 and there is no explanation submitted by the ld. D/R. Keeping in view the settled law, we have got no hesitation to hold that issuance of notices is time barred. Since the enunciation of the proceedings is itself time barred, so all other factual aspects need not required to be discussed, as further order is null and void.” 4. We have also gone through the record and find that the assessee has filed screenshot which was the basis of order: Printed from counselvise.com 3 M.A. No. 28/Kol/2025 (Arising out of ITA No. 347/Kol/2023) Assessment Year: 2014-15 Tufail Ahmed 5. In this context, we have also gone through the order passed by the Hon’ble Calcutta High Court in the case of Marudhar Vintrade Pvt. Ltd. vs. Union of India & Ors. Wherein it was held thus: “Heard learned advocates appearing for the respective parties. Petitioner in this writ petition is aggrieved by the issuance of impugned notice under section 148 of the Income Tax Act, 1961 on the grounds that the same is barred by limitation and that the respondent-income tax authority concerned, before issuing the impugned notices under section 148 of the 1961 Act, has not observed the statutory formalities under section 148A of the 1961 Act as prescribed by the Finance Act, 2021 which are applicable with effect from 1st April 2021 before issuance of notices under section 148 of the 1961 Act on or after 1st April 2021. Printed from counselvise.com 4 M.A. No. 28/Kol/2025 (Arising out of ITA No. 347/Kol/2023) Assessment Year: 2014-15 Tufail Ahmed Learned advocate for the respondent was asked as to whether final assessment order has already been passed or not in this case to which he submits that final assessment order has already been passed. He further submits on the basis of record that the impugned notice under section 148 of the 1961 Act, though it bears date and signature of the authority showing that it was singed on March 31, 2021, but it was actually uploaded for communication on April 1, 2021 at 3 a.m. which has to be treated as date of issuance of the impugned notice. Considering these facts, I am of the considered view that this case clearly falls under the amended Act relating to proceedings under section 147 of the Act under which issuance of notice under section 148A of the Act is mandatory before issuing any notice under section 148 of the amended Act which has not been complied with in this case. Considering the above facts and circumstances of the case and in view of the order of this court in the case of Bagaria Properties and Investment Private Limited & Anr. v. Union of India & Ors. reported in (2022) 134 taxman.com 196 (Calcutta) and also in the case of Monoj Jain v. Union of India reported in (2022) 134 taxman.com 173 (Calcutta), the impugned notice under section 148 of the Act and all subsequent proceedings are not sustainable in law and the same are quashed. However, quashing of the impugned notice and proceeding will not debar the respondent- authority concerned to issue any fresh notice in future in accordance with law. With the above observations, WPA No.4382 of 2022 stands disposed of.” 6. Admittedly in the case of the assessee as it appears from the screenshot that it was uploaded on 01.04.2021 though notices signed on 31.03.2021. Keeping in view the Hon’ble Calcutta High Court decision and going over the order passed by the Tribunal, we do not find any infirmity in the impugned order passed by the Tribunal. We do not find any merit in the Misc. application. Accordingly, the Miscellaneous application filed by the revenue is dismissed. In the result, the miscellaneous application of the revenue is dismissed. Order is pronounced in the open court on 25th July, 2025 Sd/- Sd/- (Rajesh Kumar/राजेश क ुमार) (Pradip Kumar Choubey /Ĥदȣप क ुमार चौबे) Accountant Member/लेखा सदèय Judicial Member/ÛयाǓयक सदèय Dated: 25th July, 2025 SM, Sr. PS Printed from counselvise.com 5 M.A. No. 28/Kol/2025 (Arising out of ITA No. 347/Kol/2023) Assessment Year: 2014-15 Tufail Ahmed Copy of the order forwarded to: 1. Appellant- ACIT, Circle-2(1), Kolkata 2. Respondent – Tufail Ahmed, S/o, Khalil Ahmed, Near Moal Masjid, Qurban road, Chandwara, Muzaffarpur, Bihar-842001 3. Ld. CIT(A)- NFAC, Delhi 4. Ld. PCIT- , Kolkata 5. DR, Kolkata Benches, Kolkata (sent through e-mail) True Copy By Order Assistant Registrar ITAT, Kolkata Benches, Kolkata Printed from counselvise.com "