2025 (5) TMI 333 - AT - Income Tax

Validity of reassessment notice u/s 147 - notice as unsigned by AO - HELD THAT - A bare perusal of the notice reveals that the same unsigned. The notice is neither digitally signed nor physically signed by the AO. The note at the bottom of the page specifies that If digitally signed the date of digital signature may be taken as the date of the document. Since the notice issued u/s 148 is unsigned it is invalid and hence the proceedings arising from the said notice are vitiated. No material has been placed on record by the Department to controvert the submissions for the assessee with regard to notice u/s.148 of the Act being unsigned. In light of the fact that the notice issued u/s. 148 is unsigned the same is held to be invalid. Once bedrock for initiating proceedings u/s. 148 r.w.s 147 is eroded the subsequent proceedings arising therefrom would not survive. Appeal of assessee allowed.

Summary

The Appellate Tribunal (ITAT Delhi), per Judicial Member Shri Vikas Awasthy, allowed the assessee's appeal against the CIT(A)'s order for AY 2011-12. The assessee raised an additional legal ground challenging the validity of the notice issued under Section 148 of the Income Tax Act, 1961, on the basis that the notice was unsigned by the Assessing Officer (AO). The Tribunal admitted this ground as it "goes to the root of validity of reopening of assessment."Despite directions, the AO failed to provide any report or assessment records addressing this issue. Examination of the Section 148 notice dated 30.03.2018 revealed it was neither physically nor digitally signed by the AO. The Tribunal held that since the notice was unsigned, "it is invalid, and hence, the proceedings arising from the said notice are vitiated." No contrary evidence was presented by the Department.Accordingly, the Tribunal concluded that "once bedrock for initiating proceedings u/s. 148 r.w.s 147 of the Act is eroded, the subsequent proceedings arising therefrom would not survive." The appeal was allowed on this legal ground, rendering other merits-based grounds "academic" and not adjudicated. The impugned order was quashed, and the appeal disposed in favor of the assessee.