CHANDRA KUMAR GUPTA,DELHI V. DEPUTY COMMISSIONER OF INCOME TAX- CIRCLE 16(1), DELHI, DELHI

ITA 4051/DEL/2024

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The case revolves around an appeal by Chandra Kumar Gupta against the order of the CIT(A) NFAC, Delhi, which arose from an assessment order passed by the DCIT, Circle 16(1) Delhi. The core issue was the validity of a notice under Section 148 of the Income Tax Act, 1961, issued by the DCIT, which was neither digitally nor manually signed. The Tribunal examined the legal requirements for such notices, referencing several judgments that emphasized the necessity of a signature for the notice to be considered valid. The Tribunal found that the absence of a signature on the notice rendered it without legal force, leading to the quashing of the notice and the entire proceeding.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 652738 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Other Referred Cases: Prakash Krishnavtar Bhardwaj Vs. ITO, DCIT Vs. Taureg Properties & Securities Services Ltd., Vikas Gupta Vs. Union of India
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJAY KUMAR
• Assessee Lawyers: PRANSHU GOYAL; ADITYA GUPTA
• Section: 148

Judgement Text

"P a g e | 1 ITA No.4051/Del/2024 Chandra Kumar Gupta (AY: 2011-12) THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, DELHI BEFORE MS. MADHUMITA ROY, JUDICIAL MEMBER ITA No.4051/Del/2024 (Assessment Year 2011-12) Chandra Kumar Gupta D-21, Part-II, Model Town, New Delhi – 110009 Vs. DCIT, Circle 16(1) C.R. Building ITO, IP Estate, New Delhi 110002 \u0001थायीलेखासं./जीआइआरसं./PAN/GIR No: ABEPG9630P Appellant .. Respondent Appellant by : Sh. Pranshu Goyal, CA & Sh. Aditya Gupta, Adv. Respondent by : Sh. Sanjay Kumar, Sr. DR Date of Hearing 19.03.2025 Date of Pronouncement 16.06.2025 O R D E R PER MADHUMITA ROY, JM: The instant appeal filed by the assessee is directed against the order passed by the Ld. CIT(A) NFAC, Delhi, dated 10.07.2024 arising out of the Assessment Order dated 26.12.2018 passed by the DCIT, Circle 16(1) Delhi, under Section 147/143(3) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for Assessment Year 2011-12. P a g e | 2 ITA No.4051/Del/2024 Chandra Kumar Gupta (AY: 2011-12) 2. The short point involved in this particular case as to whether the notice under Section 148 of the Act dated 31.03.2018 issued by the DCIT, Circle 16(1) Delhi bearing no signature of the said officer is sustainable in the eyes of law or not. 3. Heard the parties and perused the records, the notice is appearing at page 1 of the paper book filed before us neither it is digitally signed nor manually. On the identical facts and circumstances of the matter the Ld. AR relying upon the very many following judgments prayed for quashing of the notice under Section 148 of the Act itself and consequentially the proceeding impugned before us: i. Prakash Krishnavtar Bhardwaj Vs. ITO (Writ Petition No. 9835/2022) ii. DCIT Vs. Taureg Properties & Securities Services Ltd. (ITA No.733/Del/2016) (2020) 80 ITR 386 (Delhi) iii. Vikas Gupta Vs. Union of India (2022) (142 taxmann.com 253 (Allahabad) 4. While dealing with this particular aspect of the matter the Hon’ble Allahabad High Court in the case of Vikas Gupta (supra) observed as follows: “25. Thus the expression \"shall be signed\" used in Section 282A(1) of the Act 1961 makes the signing of the notice or other document by that authority a mandatory requirement. It is not a ministerial act or an empty formality which can be dispensed with. \"Signed\" means to sign one's name; to signify assent or adhesion to by signing one's name; to attest by signing or when a person is unable to write his name then affixation of \"mark\" by such person. The document must be signed or mark must be affixed in such a way as to make it appear that the person signing it or affixing his mark is the author of it. Therefore, a notice or other document as referred in Section 282A (1) of the Act, 1961 will take legal effect only after it is signed by that Income Tax Authority, whether physically or digitally. The usage of the word \"shall\" make it a mandatory requirement.” P a g e | 3 ITA No.4051/Del/2024 Chandra Kumar Gupta (AY: 2011-12) 5. As it is held that notice or other documents as referred in Section 282A(1) of the Act will take legal effect only after it is signed by an Income Tax Authority whether physically or digitally, I don’t find any reason to deviate the stand taken by the Hon’ble Allahabad High Court and the identical ratio laid down in the other two judgments and respectfully relying upon the same I find that as the impugned notice issued under Section 148 of the Act dated 31.03.2018 annexed at page 1 of the paper book neither digitally nor manually signed by the concerned authority the same has no legal force and therefore, liable to be quashed. The entire proceeding is thus, void-ab-initio and therefore, quashed. 6. The appeal of the assessee is allowed. Order pronounced in the open court on 16.06.2025 Sd/- (Madhumita Roy) JUDICIAL MEMBER Dated 16.06.2025 Rohit, Sr. PS Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI "