SANTOSH KRISHNA HUF V. UNION OF INDIA AND 2 OTHERS

WTAX/211/2022

AI Insights

The case involves a challenge to a notice issued under Section 148 of the Income Tax Act, 1961, by the Income Tax Department to Santosh Krishna HUF for the Assessment Year 2013-14. The petitioner contended that the notice was time-barred, as it was issued on 01.04.2021, after the statutory deadline of 31.03.2021. The respondents admitted in their counter affidavit that the notice was indeed issued after the deadline, leading to the quashing of both the notice and the subsequent re-assessment order based on it. The court referenced a similar case, Writ-Tax No.78 of 2022 (Daujee Abhushan Bhandar Pvt. Ltd. vs. Union of India & 2 Ors.), to support its decision.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 724138 (HC-ALLAHABAD)
• Appeal Type: Others
• Pronouncement Date: 18-04-2022
• Assessment Year: misc
• Other Referred Cases: Daujee Abhushan Bhandar Pvt. Ltd. vs. Union of India & 2 Ors.
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: GAURAV MAHAJAN; MANU GHILDYAL; UGRASEN KUMAR PANDEY
• Assessee Lawyers: ASHISH BANSAL
• Keywords: Assessment Year 2013-14; Jurisdiction; Notice; Quashed; Time barred
• Section: 148

Judgement Text

"Court No. - 3 Case :- WRIT TAX No. - 211 of 2022 Petitioner :- Santosh Krishna Huf Respondent :- Union Of India And 2 Others Counsel for Petitioner :- Ashish Bansal Counsel for Respondent :- A.S.G.I.,Gaurav Mahajan,Manu Ghildyal,Ugrasen Kumar Pandey Hon'ble Surya Prakash Kesarwani,J. Hon'ble Jayant Banerji,J. 1. Heard Shri Ashish Bansal, learned counsel for the petitioner and Shri Manu Ghildyal, learned counsel for the respondent- Income Tax Department. 2. On 04.04.2022, the Court passed the following order:- \"1. Heard Shri Ashish Bansal, learned counsel for the petitioner and Shri Manu Ghildyal, learned Standing Counsel for the respondent nos. 2 and 3. 2. On 23.3.2022, this Court passed the following order: \"Heard Sri Ashish Bansal, learned counsel for the petitioner and Sri Manu Ghildiyal, learned counsel for the respondent Nos.2 and 3. Prima facie, it appears that the notice dated 31.03.2021 under Section 148 of the Income Tax Act, 1961 for the Assessment Year 2013-14 was issued to the petitioner on 01.04.2021 and thus, it was time barred as evident from Annexure-2 to the writ petition. Learned standing counsel prays for and is granted a week's time to obtain instructions or to file a counter affidavit within three days. Put up as a fresh case before the appropriate bench on 28.03.2022.\" 3. Today, Shri Manu Ghildyal, learned Standing Counsel has produced instructions of the respondent no. 3 dated 24.3.2022, which is kept on record. 4. As per paragraph 1c of the instructions, it has been stated by the respondent no. 3 as under: \"But as per mail details 'sent time stamp' shows as 01.04.2021 at 05.30.08 AM\" 5. A copy of the relevant proof of sending e-mail has also been annexed to the aforesaid instructions which shows that the notice under Section 148 of the Income Tax Act, 1961 was issued by the respondent no. 2 to the petitioner on 01.04.2021 at 05:30:08 AM which was delivered on the same date at 05:30:11 AM. 6. Limitation available to the respondents to issue notice under Section 148 of the Act, 1961 for the assessment year 2013-14 was available only till 31.3.2021. 7. In view of the aforesaid, we direct the respondents to file a counter affidavit within two days annexing therewith all the relevant papers showing issue of notice as well as copy of the order-sheet either physical or online. 8. Put up as a fresh case on 7.4.2022 at 10:00 AM. 9. Considering the facts and circumstances of the case as briefly noted above, as an interim measure, it is provided that all further and consequential proceedings pursuant to the impugned notice under Section 148 of the Act, 1961 shall remain stayed until further orders of the Court.\" 3. Today, a short counter affidavit dated 15.04.2022 on behalf of the respondent nos.2 and 3 has been filed, which is taken on record. In paragraph 4 thereof, the respondents have stated as under:- \"4. That, after passing of the order dated 07.04.2022, the deponent raised a request before the ITBA technical team. The ITBA technical team has provided the details with regard to the date and time of generation of Notice u/s 148, date and time of digitally signing in ITBA and the date and time of triggering of email automatically by IBTA technical servers. The comments of ADIT-5, ITBA O/o DIT (Systems) Delhi to the deponent of this affidavit is as follows:- Sir/Madam, Kindly refer to the trailing email on the subject cited above. The request made as per trail email had been forwarded to the ITBA technical team. As per reply received from the Technical team of ITBA: Date & time of Generation of Notice u/s 148 in ITBA system by AO:31/03/2021 09:01:37 PM Date & time of Digital signing (DSC) in ITBA by AO:31/03/2021 09:51:45 PM Date & time of triggering of email automatedly by ITBA technical servers : 01/04/2021 05:30:08 AM Date & time of delivering of email as per data in ITBA technical servers : 01/04/2021 05:30:11 AM Further, the system-generated Case History Notings as extracted by Technical Team is also given as Attachment (Excel). The word 'issued' as mentioned in first row of this system-generated Case History Notings is mentioned in a technical sense. It refers to 'generation of a document' in ITBA. Regards, Rajesh Kumar ADIT-5, ITBA O/o DIT (Systems), Delhi\" 4. In view of the facts admitted by the respondents in the aforesaid short counter affidavit that the date and time of triggering of email automatedly by ITBA technical servers is at 01/04/2021 05:30:08 a.m., the impugned notice under Section 148 of the Income Tax Act, 1961 dated 31.03.2021 is without jurisdiction, inasmuch as it has been issued by the respondents on 01.04.2021, i.e., after expiry of the limitation for issuing notice. 5. The controversy involved in this petition is concluded by our judgment dated 10.03.2022 passed in Writ-Tax No.78 of 2022 (Daujee Abhushan Bhandar Pvt. Ltd. vs. Union of India & 2 Ors.). 6. For the reasons stated in the aforesaid judgment dated 10.03.2022 in Writ Tax No.78 of 2022, the writ petition is allowed. The impugned notice under Section 148 of the Income Tax Act dated 31.03.2021 and the re-assessment order dated 31.03.2022 relating to Assessment Year 2013-14 are hereby quashed. Order Date :- 18.4.2022 SK Digitally signed by SUSHEEL KUMAR Date: 2022.04.18 15:51:16 IST Reason: Location: High Court of Judicature at Allahabad "