Point of Law: Section 13(1) of the Act, 2000 provides that unless otherwise agreed, the dispatch of an electronic record occurs when it enters into computer resources outside the control of the originator. Thus, the point of time when a digitally signed notice in the form of electronic record is entered in computer resources outside the control of the originator i.e. the assessing authority that shall the date and time of issuance of notice under section 148 read with Section 149 of the Act, 1961.

JUDGMENT :

1. Heard Sri. Dhruv Agarwal, learned Senior Advocate, who on our request assisted the Court as Amicus curiae and also heard Sri. Abhinav Mehrotra and Sri. Kapil Goel, learned counsel for the petitioner and Sri. Gaurav Mahajan, learned Senior standing counsel for the respondents i.e. Income Tax Department.

2. Briefly stated facts of the present case are that the petitioner is a regular assessee. It filed its return of Income under Section 139(1) of the Income Tax Act, 1961 (hereinafter referred to as “the Act 1961”) on 29.09.2013 for the Assessment Year 2013-14 and the assessment was completed.

3. Subsequently, the Assessing Authority attempted to initiate proceedings under Section 148 of the Act, 1961. For this purpose, a notice under Section 148 of the Act, 1961 for the Assessment Year 2013-14 was digitally signed by the Assessing Authority on 31.3.2021. It was sent to the assesses through e-mail and e-mail was undisputedly received by the petitioner on his registered e-mail I.D. on 06.04.2021. The limitation for issuing notice under Section 148 read with Section 149 of the Act, 1961 was upto 31.03.2021 for the Assessment Year 2013-14.

4. Under the circumstances, the petitioner filed objections before the Assessing Authority. One of the objections raised by the petitioner was that the notice is time barred and thus without jurisdiction as it was issued on 06.04.2021 whereas the limitation for issuing notice under Section 148 read with Section 149 of the Act 1961 expired on 31.03.2021. The objection filed by the petitioner was rejected by the Assessing Authority holding that since the notice was digitally signed on 31.03.2021, therefore, it shall be deemed to have been issued within time i.e. on 31.03.2021.

5. Aggrieved, the petitioner has filed the present writ petition, praying for the following reliefs:

“(a) Issue a writ, order or direction in the nature of certiorari quashing the notice under Section 148 of Income Tax Act, dated 31.03.2021 and the connected proceedings for reassessment of Income for A.Y. 2013-14.

(b) Issue a writ in the nature of mandamus or an order prohibiting the operation of the proceedings initiated by the respondent number 2.”

6. Yesterday, this writ petition was hard at length and following questions were framed for determination:

“(i) Whether digitally signing notice would automatically amount to issuance of notice?

(ii) Whether digitally signing a notice and issuing it are two different acts?

(iii) Whether issuance of notice shall take place on the date and time when it is dispatched either electronically or through other mode?

(iv) Whether merely generating notice from the Departmental Portal on 31.3.2021 and digitally signing it thereafter, would amount to issuance of notice?

(v) Even if it is assumed that the notice under Section 148 of the Income Tax Act was issued on 31.3.2022 and despatched on 6.4.2022 then whether the un-amended provision of Section 148 or amended provision of Section 148 would apply?”

7. With the consent of the learned counsels for the parties, only question nos. (i) (ii) (iii) and (iv), as aforequoted, are being decided and the Question No. (v) is left open.

Submissions

8. Learned counsel for the petitioner submits that digitally signing a notice is an act different from the act of issuing the notice. Section 149 provides limitation for issuance of the notice under section 148. When the notice has been issued to the petitioner by the Assessing Authority beyond the period of limitation i.e. after. 31.03.2021, therefore, the notice is time barred and no proceeding can be carried by the Assessing Authority pursuant to the impugned notice under Section 148 of the Act, 1961.

9. In support of the submissions, learned counsel for the petitioner has referred the provisions of Sections 148, 149, 282(1)(c) and 282 A of the Act, 1961 and Rule 127 A of the Income Tax Rules 1962 (hereinafter referred to as “the Rules 1962”) and some definition clauses, Sections 3 and 13 of the Information T