MANOJ KUMAR SAHU, DURG,DURG V. ITO, WARD-2(1), BHILAI, DURG

ITA 475/RPR/2025

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The case involves Manoj Kumar Sahu, the appellant, contesting a penalty imposed by the Income Tax Officer, Ward-2(1), Bhilai, for the assessment year 2013-14. The primary contention was the validity of the notice issued under section 143(2) of the Income Tax Act, 1961, which was found to be unsigned. The Tribunal referenced several judicial pronouncements to support the view that an unsigned notice is invalid and renders all subsequent proceedings void. The Tribunal also noted that the quantum appeal for the same assessment year had already provided relief to the assessee, thereby negating any tax liability.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 793691 (ITAT-RAIPUR)
• Duration Of Justice: 1 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-09-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 01-08-2025
• Other Referred Cases: Vidya Shankar Jaiswal Vs. ITO, Ward-2, Ambikapur, Jagdish Prasad Singhania Vs. Additional Commissioner of Income Tax (TDS), Raipur, Inder Singh Vs. the State of Madhya Pradesh, Smt. Shobha Dubey Vs. ITO, Ward-3(1), Raipur, Bharat Krishi Kendra Vs. Union of India, Prakash Kirshnavtar Bhardwaj Vs. Income Tax Officer, Ward-2(1), NFAC, Pune, ACIT Vs. Hotel Blue Moon, Shaily Juneja Vs. ACIT
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRIYANKA PATEL
• Assessee Lawyers: YOGESH SETHIA
• Keywords: Set aside; Invalid notice; Reassessment proceedings; Question of law; TDS; Competent authority
• Section: 147; 148; 144; 143(3)

Judgement Text

"आयकर अपीलȣय अͬधकरण Ûयायपीठ “एक-सदèय” मामला रायपुर मɅ IN THE INCOME TAX APPELLATE TRIBUNAL RAIPUR BENCH “SMC”, RAIPUR Įी पाथ[ सारथी चौधरȣ, ÛयाǓयक सदèय क े सम¢ BEFORE SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER आयकर अपील सं./ITA No.475/RPR/2025 Ǔनधा[रण वष[ /Assessment Year : 2013-14 Manoj Kumar Sahu 151, Village: Rajpur, Tehsil: Dhamdha, Dist. Durg-491 331 (C.G.) PAN: EOMPS2921J .......अपीलाथȸ / Appellant बनाम / V/s. The Income Tax Officer, Ward-2(1), Bhilai (C.G.) ……Ĥ×यथȸ / Respondent Assessee by : Shri Yogesh Sethia, CA Revenue by : Dr. Priyanka Patel, Sr. DR सुनवाई कȧ तारȣख / Date of Hearing : 23.09.2025 घोषणा कȧ तारȣख / Date of Pronouncement : 23.09.2025 Printed from counselvise.com 2 Manoj Kumar Sahu Vs. ITO, Ward-2(1), Bhilai ITA No.475/RPR/2025 आदेश / ORDER PER PARTHA SARATHI CHAUDHURY, JM The present appeal preferred by the assessee emanates from the order of the Ld.CIT(Appeals)/NFAC, Delhi dated 02.09.2024 for the assessment year 2013-14 as per the grounds of appeal on record. 2. At the very outset, the Ld. Counsel for the assessee submitted that the present appeal is time barred by 244 days. Elaborating the reasons leading to the said delay, the Ld. Counsel has filed condonation petition a/w. affidavit, dated 20.08.2025. For the sake of clarity, the relevant contents of the said affidavit are extracted as follows: Printed from counselvise.com 3 Manoj Kumar Sahu Vs. ITO, Ward-2(1), Bhilai ITA No.475/RPR/2025 It is also noted that in the quantum appeal of the assessee in ITA No.474/RPR/2025 for A.Y.2013-14, similar delay of 244 days was condoned by the Bench considering the contents of the affidavit. Accordingly, the said delay of 244 days involved in filing the present penalty appeal is condoned after taking guidance from the following judicial pronouncements viz. (i) Vidya Shankar Jaiswal Vs. ITO, Ward-2, Ambikapur, Civil Appeal Nos……………../2025 [Special Leave Petition (Civil) Nos. 26310-26311/2024, dated 31.01.2025, (ii) Jagdish Prasad Singhania Vs. Additional Commissioner of Income Tax (TDS), Raipur (C.G.), TAX Case No.17/2025, dated 24.02.2025, and (iii) Inder Singh Vs. the State of Madhya Pradesh, Civil Appeal No…………/2025, Special Leave Petition (Civil) No.6145 of 2024, dated 21st March, 2025. 3. Coming to the merits of the case, parties herein submitted that in the quantum appeal filed by the assessee in ITA No.474/RPR/2025 for A.Y.2013-14, relief has been provided to the assessee vide order dated 22.09.2025, hence, as on date there is no tax liability on the assessee regarding quantum. 4. I have heard the submissions of the parties herein and perused the material available on record. I find that in the quantum appeal filed by the assessee in ITA No.474/RPR/2025 for A.Y.2013-14 relief was provided Printed from counselvise.com 4 Manoj Kumar Sahu Vs. ITO, Ward-2(1), Bhilai ITA No.475/RPR/2025 to the assessee by the Tribunal vide order dated 22.09.2025 by quashing the reassessment observing as follows: “5. The third legal ground that has been raised by the assessee is that the approval u/s. 151 of the Income Tax Act, 1961 (for short ‘the Act’) which was received by the assessee online was not signed, therefore, it is in violation of Section 282A(1) of the Act. For the sake of completeness, the approval u/s. 151 of the Act is culled out as follows: In the same parameter on this legal contention raised by the assessee in the case of Smt. Shobha Dubey Vs. ITO, Ward-3(1), Raipur (C.G.), ITA No.395/RPR/2025 for A.Y.2016-17, this Bench held that if the mandate of Section 282A(1) of the Act is not Printed from counselvise.com 5 Manoj Kumar Sahu Vs. ITO, Ward-2(1), Bhilai ITA No.475/RPR/2025 complied with by the department, then in such case of violation, the entire proceedings carried out subsequently by the department against the assessee is vitiated and is held as arbitrary, bad in law. In other words, any notice/communication that has been issued by the department to the assessee shall have to be signed as mandated by Section 282A(1) of the Act. If such signature is missing or is left unsigned, in such case, all subsequent proceedings that is carried out by the department on basis of such communication/notice shall be void ab initio and non-est as per law since there cannot be any legal sustainability of any proceedings which are based on documents that are void ab initio. 6. Per contra, the Ld. Sr. DR placed reliance on the decision of the Hon’ble Jurisdictional High Court in the case of Bharat Krishi Kendra Vs. Union of India, WPT No.27 of 2022, dated 15.03.2022 which has already been considered in the said decision of Smt. Shobha Dubey Vs. ITO, Ward-3(1), Raipur (supra). The relevant extracts are culled out as follows: “3. The Ld. Counsel for the assessee assailing the legal ground submitted that in the present case, though the assessment has been completed u/s.143(3) of the Income Tax Act, 1961 (for short ‘the Act’), however no valid notice u/s.143(2) of the Act has been served on the assessee since such notice is without any signature of the issuing authority hence, violative of Section 282A(1) of the Act. The copy of notice u/s.143(2) of the Act, dated 18.09.2017 has been annexed at Page 1 to 4 of the paper book which is extracted and made part of this order: Printed from counselvise.com 6 Manoj Kumar Sahu Vs. ITO, Ward-2(1), Bhilai ITA No.475/RPR/2025 Printed from counselvise.com 7 Manoj Kumar Sahu Vs. ITO, Ward-2(1), Bhilai ITA No.475/RPR/2025 Printed from counselvise.com 8 Manoj Kumar Sahu Vs. ITO, Ward-2(1), Bhilai ITA No.475/RPR/2025 Printed from counselvise.com 9 Manoj Kumar Sahu Vs. ITO, Ward-2(1), Bhilai ITA No.475/RPR/2025 Printed from counselvise.com 10 Manoj Kumar Sahu Vs. ITO, Ward-2(1), Bhilai ITA No.475/RPR/2025 4. That as discernible from the aforesaid notice u/s. 143(2) of the Act, there is no signature of the competent authority issuing the said notice. The name and designation is mentioned as Amrit Kumar, Ward-3(1), Raipur but neither there is any signature nor there is any seal of the jurisdictional officer and both the places of signature as well as seal in the aforesaid notice are left blank. 5. In this regard, the Ld. Sr. DR could not place on record any evidence refuting these facts on record. However, she submitted that since the notice has been sent through electronic form, therefore, there was no requirement for such signature of the issuing authority and even without such signature, the notice u/s. 143(2) of the Act was valid. The Ld. Sr. DR has placed reliance on the decision of the Hon’ble Jurisdictional High Court in the case of Bharat Krishi Kendra Vs. Union of India, WPT No.27 of 2022, dated 15.03.2022. The Ld. Sr. DR refers to Para 14 of the said decision which reads as follows: “14. Third submission of learned counsel for petitioner is that approval granted under Section 151 of the Act of 1961 does not bear digital signature of authority, referring to note appended to approval (Annexure P-5), is concerned, the note appended says \"if digitally signed, the date of digital signature may be taken as date of document\". Submission of learned counsel for petitioner, in the opinion of this Court, is not acceptable in view of provisions of Section 282 (a) of the Act of 1961, which provides that notice or other documents to be issued for the purpose of the Act of 1961 by any income-tax authority shall be deemed to be authenticated if name and designation is provided. In approval under Section 151 of the Act of 1961, name, designation and office is printed. Hence, submission of learned counsel for petitioner that approval is not digitally signed is also not sustainable, more so when it bears DIN & Document Number.” 6. That before responding to the submissions of the Ld. Sr. DR, it would be pertinent to extract the provision of Section 282A of the Act which reads as follows: “282A. (1) Where this Act requires a notice or other document to be issued by any income-tax authority, such notice or other document shall be signed and issued in paper form or communicated in electronic form by that authority in accordance with such procedure as may be prescribed. Printed from counselvise.com 11 Manoj Kumar Sahu Vs. ITO, Ward-2(1), Bhilai ITA No.475/RPR/2025 (2) Every notice or other document to be issued, served or given for the purposes of this Act by any income-tax authority, shall be deemed to be authenticated if the name and office of a designated income-tax authority is printed, stamped or otherwise written thereon. (3) For the purposes of this section, a designated income-tax authority shall mean any income-tax authority authorised by the Board to issue, serve or give such notice or other document after authentication in the manner as provided in sub- section (2).” 7. The intention of the legislature is very clear so far as the aforesaid provision of the Act is concerned, wherein at Clause (1), it states that Where this Act requires a notice or other document to be issued by any income-tax authority, such notice or other document shall be signed and issued in paper form or communicated in electronic form by that authority in accordance with such procedure as may be prescribed. In other words, it is mandatory that any notice or document i.e. issued by the Income Tax Authority to the assessee such notice or document “shall be signed”. Suppose if the intention of the legislature was that such kind of signature is not mandatory, the word “shall” would have been replaced by “will”. However, when the word “shall” has been used, it prescribes the mandatory requirement for signature of any notice or documents whether issued in paper form or communicated in electronic form to the assessee and, therefore, the submissions of the Ld. Sr. DR that since such notice u/s. 143(2) of the Act has been issued in electronic form, hence no signature is required is incorrect and not in conformity with Section 282A(1) of the Act. The reference made by the Ld. Sr. DR with regard to the judgment of the Hon’ble Jurisdictional High Court (supra), the same deals with firstly, Section 151 of the Act and not with regard to notice u/s. 143(2) of the Act; and secondly, the Hon’ble High Court has observed that “…….. notice or other documents to be issued for the purpose of the Act of 1961 by any income-tax authority shall be deemed to be authenticated if name and designation is provided………”. In fact, the Hon’ble High Court (supra) in Para-14 of the judgment refers to Section 282A(2) of the Act. For the sake of completeness, the same is extracted as follows: “(2) Every notice or other document to be issued, served or given for the purposes of this Act by any income-tax authority, shall be deemed to be authenticated if the name and office of a designated income-tax authority is printed, stamped or otherwise written thereon.” Printed from counselvise.com 12 Manoj Kumar Sahu Vs. ITO, Ward-2(1), Bhilai ITA No.475/RPR/2025 8. It is crystal clear from joint reading of Para-14 of the decision of the Hon’ble High Court (supra) and Clause (2) of Section 282A of the Act, that the Hon’ble High Court has referred deeming provision with regard to the authentication in respect of notice or other document if the name and office of a designated income-tax authority is printed, stamped or otherwise written thereon. There is no dispute that as per requirement of the provision for authentication of such notice, the presence of name and office of the designated Incomer Tax Authority, if it is printed etc. then it shall be deemed to be authenticated. However, this provision does not supersedes Clause (1) of Section 282A of the Act where it is mandatory first and foremost that the competent Income Tax Authority issuing any notice shall sign such notice or other document irrespective of such notice issued either on paper form or communicated through electronic form. Meaning thereby, signing of notice issued to the assessee is mandatory and that is not dispensed with by the deeming provision of Clause (2) to Section 282A of the Act which is only with regard to authentication of such notice. “Authentication” essentially refers to making the assessee aware that such notice has been issued from Income Tax Department and such authentication shall deemed to exist if the name and office of the competent Income Tax Authority is mentioned in the notice but that does not provide any relaxation for application of Section 282A(1) of the Act regarding mandatorily signing of notice even if such notice is sent to the assessee in electronic form. 9. Reverting to the facts of the present case, it is crystal clear that such notice u/s. 143(2) of the Act which has been issued to the assessee was unsigned. The revenue has not placed on record any evidence contrary to the facts on record. 10. The Hon’ble High Court of Bombay in the case of Prakash Kirshnavtar Bhardwaj Vs. Income Tax Officer, Ward-2(1), NFAC, Pune WP No.9835 of 2022, dated 09.01.2023 on the similar issue has held and observed as follows: “19. Applying the ratio of the judgment of the Calcutta High Court in B.K. Gooyee and Aparna Agency (P.) Ltd. (supra) to the facts of the present case, the signature of the Assessing Officer admittedly not having been affixed on the notice issued u/s.148 of the Act, the notice itself would be invalid and consequently, the Assessing Officer could not assume jurisdiction to proceed in the matter in terms of section 148 Printed from counselvise.com 13 Manoj Kumar Sahu Vs. ITO, Ward-2(1), Bhilai ITA No.475/RPR/2025 of the Act. The Madhya Pradesh High Court in Umashankar Mishra (supra) has dealt with a similar fact situation where the first substantial question of law dealt with in that case had considered the effect of whether an unsigned notice can be considered as an irregularity or clerical mistake. The Madhya Pradesh High Court after making reference to the conclusions drawn in B.K.Gooyee (supra) by the Calcutta High Court, has taken the view, that a notice without a signature affixed on it is an invalid notice and is effectively no notice in the eyes of law. 20. The Madhya Pradesh High Court in Umashankar (supra) has further dealt with the second substantial question of law as to whether the Tribunal was right in holding that the absence of a signature on the notice constitutes a mistake or omission within the meaning of section 292B of the Act and while addressing itself to that question, has concluded that in the absence of a signature on the notice, the same would not constitute a mistake or omission and would not be curable under the provisions of section 292B of the Act. 21. We are, therefore, of the considered opinion that in the present case, the notice u/s.148 dated 02.04.2022 having no signature affixed on it, digitally or manually, the same is invalid and would not vest the Assessing Officer with any further jurisdiction to proceed to reassess the income of the petitioner. Consequently, the notice dated 02.04.2022 u/s.148 of the Act issued to the petitioner being invalid and sought to be issued after three years from the end of the relevant assessment year 2015-16 with which we are concerned in this petition, any steps taken by the respondents in furtherance of notice dated 21.03.2022 issued under clause (b) of section 148A of the Act and order dated 02.04.2022 issued under clause (d) of section 148A of the Act, would be without jurisdiction, and therefore, arbitrary and contrary to Article 14 of the Constitution of India. Consequently, we quash and set aside the notice dated 02.04.2022 issued by the respondents u/s.148 of the Act, order dated 02.04.2022 under clause (b) of section 148A of the Act and notice dated 21.03.2022 issued under clause (b) of section 148A of the Act.” 11. Further the Hon’ble Supreme Court in the case of ACIT Vs. Hotel Blue Moon, 321 ITR 362 (SC) has held that issuance of notice u/s. 143(2) of the Act is sine-qua-non for framing of an assessment u/s. 143(3) of the Act. Also, the Hon’ble High Court of Delhi in the case of Shaily Juneja Vs. ACIT, (2024) 167 taxmann.com 90 (Delhi) has dealt Printed from counselvise.com 14 Manoj Kumar Sahu Vs. ITO, Ward-2(1), Bhilai ITA No.475/RPR/2025 with the similar issue and held that issuance of notice u/s. 143(2) of the Act is mandatory in reassessment proceedings u/s. 147 of the Act. 12. Considering the facts and circumstances in this case and as per the aforesaid judicial pronouncements a/w. relevant provisions of the Act, I am of the considered view that since in this case notice u/s. 143(2) of the Act issued to the assessee was left unsigned and blank therefore it is violative of Section 282A(1) of the Act, hence, such notice is held invalid, arbitrary and void ab initio. 13. That once the very notice u/s.143(2) of the Act is invalid, void ab initio, hence, the A.O ceases to possess any valid inherent jurisdiction to complete the assessment u/s.143(3) of the Act which is therefore, quashed. 14. That since the assessment itself is quashed, thereafter all other proceedings becomes non-est as per law. Since the legal issue has been answered in favour of the assessee therefore the grounds on merits becomes academic only. 15. As per the aforesaid terms the grounds of appeal raised by the assessee stands allowed. 16. In the result, appeal of the assessee is allowed.” 7. Though the above referred decision pertains to invalid notice u/s. 143(2) of the Act wherein such notice was without any signature of the issuing authority but the mandate of the provisions of Section 282A(1) of the Act is triggered also in a similar way and as per similar terms in the present case of the assessee as well i.e. with regard to the unsigned approval u/s. 151 of the Act as received by the assessee. Therefore, on the same parity of reasoning, it is held that since the approval u/s. 151 of the Act issued to the assessee was left unsigned and blank, since it is violative of Section 282A(1) of the Act, hence such approval is held to be invalid, arbitrary and void ab initio. 8. That once the very approval u/s. 151 of the Act is invalid and void ab initio, hence the A.O ceases to possess any valid inherent jurisdiction to complete the reassessment u/s. 147 r.w.s 144 r.w.s. 144B which is therefore held invalid hence quashed. The third legal ground is answered in favour of the assessee and against the revenue. Printed from counselvise.com 15 Manoj Kumar Sahu Vs. ITO, Ward-2(1), Bhilai ITA No.475/RPR/2025 9. That since the reassessment itself is quashed, therefore, all subsequent proceedings becomes non-est as per law. That the legal issue has been answered in favour of the assessee, therefore, grounds on merits, if any becomes academic only.” 5. Considering the aforesaid facts and circumstances, I hold that since quantum addition have been deleted, the penalty shall not have any legal sustainability. The aforesaid view is fortified by the judgments of the Hon'ble High Court of Rajasthan in the case of CIT Vs. cosmopolitan Trading Corporation reported as 274 ITR 640 and Hon’ble Punjab & Haryana High Court in the case of CIT Vs. Prakash Industries Ltd reported as 322 ITR 622 that when the entire addition had been deleted in the quantum appeal, no reason survives for sustaining the penalty. 6. As per the aforesaid terms grounds of appeal raised by the assessee are allowed. 7. In the result, appeal of the assessee is allowed. Order pronounced in open court on 23rd day of September, 2025. Sd/- (PARTHA SARATHI CHAUDHURY) ÛयाǓयक सदèय/JUDICIAL MEMBER रायपुर / Raipur; Ǒदनांक / Dated : 23rd September, 2025. SB, Sr. PS आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of the Order forwarded to : 1. अपीलाथȸ / The Appellant. Printed from counselvise.com 16 Manoj Kumar Sahu Vs. ITO, Ward-2(1), Bhilai ITA No.475/RPR/2025 2. Ĥ×यथȸ / The Respondent. 3. The Pr. CIT-1, Raipur (C.G.) 4. ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय अͬधकरण, “एक-सदèय” बɅच, रायपुर / DR, ITAT, “SMC” Bench, Raipur. 5. गाड[ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलȣय अͬधकरण, रायपुर / ITAT, Raipur Printed from counselvise.com "